China’s significant & growing int’l importance

20090906 16:07 pm · 0 comments

by Armando F. Mastrapa III

in China, Economy, International Relations, Market

Image: The Economist (13 AUG 09)

Image: The Economist (13 AUG 09)

The RAND Corporation examines China’s role as a global actor in the int’l system in its latest monograph titled: “China’s International Behavior: Activism, Opportunism, and Diversification.”

RAND describes Chinese global activism as “continually changing and has so many dimensions that it immediately raises questions about its current and future intentions and the implications for global stability and prosperity.”

Moreover, the study “examines how China views its security environment, how it defines its international objectives, how it is pursuing these objectives, and the consequences for U.S. economic and security interests.”

Chinese expanded strategic interests (including business interests) in Latin America and Cuba is accelerating at a fast pace.

As this study points out:

China is building political relationships to diversify its access to energy and other natural resources, with a focus on Africa, the Middle East, and Latin America. Energy security encompasses diversifying both suppliers and supply routes.

China’s expanding involvement in Latin America is primarily (but not exclusively) driven by economic considerations: gaining access to markets, investments, and resources. The growth in China’s merchandise trade and investment in the region offers strong evidence of Chi- na’s economic motives. Trade between China and Latin America and the Caribbean has rapidly increased over the last several years, and as a result, this region has become more important to China. From 1999 to 2006, total merchandise trade increased from $8.2 billion to close to $70 billion, an almost tenfold increase. In 2006, Latin America and the Caribbean accounted for 4 percent of China’s total world trade, increasing its share by 1.7 percent since 1999.

China’s investments in Latin America are growing as well. China currently has projects in Argentina, Brazil, Chile, Cuba, the Domini- can Republic, Guyana, and Venezuela, among other nations. China’s investments in Brazil, Argentina, Chile, and Venezuela are mainly focused on facilitating access to such natural resources as iron ore, copper, and oil (in the case of Venezuela); as such, its investments have been in the mining, transportation, manufacturing, and petroleum sectors.

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