Latin America and China Under Global Neoliberalism

Abstract

While China and Latin America simultaneously implemented neoliberal policies as part of a profound economic restructuring process, there are important differences in the results of their policies and economic performance. This article discusses the different development paths of Latin America and China, including their starting points, economic policies and political processes. China's expansion and Latin America's liberalization have brought the two in much closer contact. Several Latin American countries are now important providers of commodities (for example, minerals, energy and soy) that China needs to keep up with the rising levels of production and consumption. As a result China is also starting to invest in these products. Some other Latin American countries have lost rather than gained from the rise of China, especially the countries that sought economic integration in the world market through the growth of maquiladoras (assembly factories for export to the United States). However, their attempts to slow down China's entry into the World Trade Organization (WTO) did not succeed.The article discusses the causes, effects and prospects of these different experiences with China's global expansion.