China is Now LATAM’s Second Largest Trading Partner

China has become the second largest trading partner of Latin America.

More countries in the region are signing free trade agreements with China in an attempt to boost their economics prospects.

The volume of trade between China and Latin America reached US$485.7 billion in 2022, according to the China-CELAC Private Sector Forum recently held in the Chinese city of Dongguan.

More than 3,000 Chinese companies operate in the region, and 21 Latin American countries participate in China’s “Belt and Road” initiative.

The World Economic Forum predicts that total trade between China and Latin America could exceed US$700 billion by 2035, pointing to the rising number of FTAs between the two regions. China already signed FTAs with Chile, Costa Rica, Ecuador and Peru.

China is also investing heavily in Latin America. The country has put US$172 billion into the region since 2000. This investment has gone into a variety of sectors, including natural resources, infrastructure and manufacturing.

China’s growing economic influence in Latin America has been met with mixed reactions. Some countries, such as Brazil and Argentina, have welcomed the investment and trade opportunities offered. Others, such as Venezuela, have become increasingly reliant on Chinese loans, which has raised concerns about debt sustainability.