China’s trade with and investment in the region deepened at around the time of the great recession of 2008. Between 2015 and 2019, it plans to invest $250 billion in direct investment in the region and about $500 billion in trade. It’s well on its way: China is already the largest trading partner of Argentina, Brazil, Chile, and Peru.
As I’ve previously written, countries in Africa, Asia, and Latin America have a hard time securing international financing because of poor governance, corruption, and their economic policies. But China goes to them, builds desperately needed roads, railways, and ports, and uses these new facilities to transport raw material to feed its growing economy and population. China is an attractive investor not only because it has a policy of non-interference in the domestic affairs of its partner countries but because its projects are completed at a speed that developing nations are unused to. More importantly, perhaps, it offers to finance these projects on easy terms. But there’s always a catch, Tillerson said Thursday at the University of Texas, his alma mater. [...]
“China is experimenting with market-based solutions, and moving incrementally in its international economic efforts, much as it did during its domestic development,” he wrote. “Its approach to global economic affairs appears to be more pragmatic than ideological—and may be more likely to defend than upend the liberal economic order.”
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