Third, the US has failed over the past
the Brazilian arm of Spanish Repsol for
line of credit was issued to Venezuela
decade to engage in mutually-beneficial,
$7.1 billion with the hopes of producing
from the Chinese Development Bank. By
active dialogue with Latin America. As
200,000 barrels of oil per day;this is a lofty
giving Latin American countries cheap
the War on Terror and national security
goal for China’s second largest acquisition
access to credit with few strings attached,
concerns largely dominated the agenda
of an oil company to date.In addition,
the Chinese are quickly redirecting focus
of the Bush and Obama administrations,
China
free-trade
from US-led institutions like the IADB.
efforts to engage Latin America were
agreements with many Latin American
With more than $2 trillion dollars in U.S.
forgotten or relegated to the backseat.
countries
currency
Most Latin American countries ignored the
trade with the region. The Chinese and
strength of the dollar, the Chinese see
War on Terror and focused their resources
Peruvians signed a Free-Trade agreement
hard assets, such as the raw materials they
on
in April of 2009, and China has already
are buying in Latin America, as a more
ofclean
displaced the U.S. from its eighty-year
secure investment.
energy practices. Past dialogue between
streak as Brazil’s largest trading partner.
Third, military relations between China
the U.S. and Latin America on economic
In exchange for raw materials from Latin
and Latin America have been growing
policies is another source of tension. Latin
American countries, the Chinese supply a
in the past decade. While the arms sales
Americans find a great hypocrisy in the
wealth of consumer products such as cars,
that China has made to countries such as
the
elimination
alleviation,
and
the
of
poverty,debt
creation
is
rapidly to
forming
facilitate
its
booming
and
uncertainty
about
the
fact that the United States, a country that
The US has failed over the past decade to engage in mutuallybeneÀcial, active dialogue with Latin America.
had lectured them on debt reduction, transparency, and growth, now faces a terrible financial crisis which originated out of its shady banking practices. The above issues might have been forgotten had another world power not exploited this decline in relations. China, the Asian economic giant, has made great
cell phones, and batteries, to a consumer
Venezuela, Brazil, Bolivia, and Cuba have
forays into Latin America in the previous
market of 600 million individuals.
been relatively small (anywhere from ten to a few hundred million dollars), they have
few years, and its influence is rising rapidly
In addition to joint ventures with
throughout the region. More importantly,
Latin American countries, Chinese loans
still made significant inroads in building
Latin American countries are eager to
help secure its influence and help China
military relations. A US Military Review
enter into a partnership with China, one
diversify assets away from US dollars.
in 2008 noted that that over 100 junior
that is based on a different paradigm than
In
economic
or senior officers representing 12 Latin
the region’s centuries-old relationship
assistance
directed
American countries have graduated from
with America.
towards the Inter-American Development
Chinese military academies in the past
China sees Latin America as offering
Bank (IADB), largely headed by the
few years. While this number may seem
three mutually-beneficial opportunities.
United States (with a 30% stake and
small, it represents a growing number
First, China is a rapidly growing power
Washington DC headquarters). In light of
of upcoming Latin American officers
that must meet the material demands of
the Chinese alternative, however, those
who have extraordinarily close ties to
more than 1.3 billion people. To this end,
loans havetoo many strings attached
the Chinese military and would likely
several Chinese state-owned enterprises
and are often too small. For instance,
welcome increaseda Chinese presence in
have moved into Latin America to secure
while the IADB approved a total of $11.2
their country.In addition, Chinese military
raw materials such as copper, oil, and
billion in loans for 2008, most individual
hardware, while limited, still affects U.S.
even soybeans for their use back home.
loans from China are equivalent to this
interests. Chinese “gifts,” such as the 38
In 2007 the Aluminum Corporation of
amount. Last year a $10 billion deal (made
HN5 rocket launchers given to Bolivia, were
China (CHINALCO) bought Peru Copper
in Yuans) with Argentina secured China’s
smuggled into Colombia and used against
for $860 million dollars.In October 2010,
imports to the country, while this year,
American-made
a
corporation
on top of an existing $12 billion dollar
by anti-narcotic Colombian pilots. The
namedSinopec bought a 40% stake in
bilateral investment fund, a $20 billion
Chinese are also willing to spend money to
Chinese
petrochemical
the
past,
requests
and
loans
for were
FA L L 2 0 1 0
111210 hq.indd 35
helicopters
piloted
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