ABSTRACT
Economic relations between China and Latin America have grown significantly since the turn of the century. China has become the most important market for exports for several Latin American countries and is also a major source of imports. Chinese investment has also increased significantly in the region although it still lags behind the European Union and the US in terms of FDI inflows. China has also become a significant lender to Latin American governments and state-owned enterprises. China’s growing presence in Latin America has been driven primarily by strategic economic and commercial interests. The growth of political, military and cultural relations have followed on from the economic relations rather than being major drivers in their own right. Fears in the US that China is a threat to US influence in the region have been exaggerated. China still lags a long way behind the US in terms of its significance for Latin America although the gap is narrowing in South America. Geography is likely to ensure that China will not become more important than the US in Mexico, Central America, and the Caribbean.
