ABSTRACT
This chapter brings, first, a geographical and social context as well as a theoretical framework in order to portray Bolivia as a country endowed with valuable natural resources but at the same time immersed in poverty and inequality. Second, it analyses the evolution of trade relations between Bolivia and China during Evo Morales administrations in Bolivia (2006–2019). It examines the most important traded goods between the two countries, especially in the mining and energy sector. The chapter also predicts the behaviour of bilateral investment, commercial trends, and terms of trade, especially related to the extraction and industrialization of lithium. The main research question is whether China’s economic relations with Bolivia have represented South–South or dependency relations during Evo Morales administrations. Apart from unbalanced terms of trade, contrast between the philosophy of Buen Vivir and neo-extractivist practices are evidenced. Finally, the chapter shows huge contradictions within Bolivia and in the relation between Bolivia and China. On the surface Chinese investments in lithium extraction and industrialization appear to be positive for Bolivia; however, their potential socioeconomic and environmental consequences for local communities are evidenced here as a negative externality.
