NEW YORK, December 5, 2008 – As trade and development between China and
Latin America continue to expand, both new opportunities for growth as
well as new economic challenges are emerging. An Asia Society panel of
experts on trade, investment, and politics discussed the deepening ties
between the two regions, in a talk moderated by Christopher Sabatini, senior director of Policy at the Americas Society/Council of the Americas.

Donald Hanna, director of Emerging Market Economic
& Market Analysis at Citigroup, first described the relationship
between Chinese and Latin American export markets, in particular the
changing dynamics of manufacturing markets in both regions as wage
costs change and businesses migrate. Up to this point, Hanna explained,
China has been focused on its coast and on exporting. Now, however, a
considerable account surplus and increased share in global markets will
probably help shift its focus inward and to domestic markets. This will
present Latin American markets with potential increased opportunities
to sell more to China and possible decreased competition.

International Trade Specialist at the Inter-American Development Bank Kati Suominen
reflected on the "tremendous opportunity on both sides, both for China
and for Latin America, when it comes to trade issues." In terms of
growth, Latin American exports to and imports from China rose more
quickly than they did with other countries over the past few years, and
a reciprocal trend took place in China.

Investment relations between the two regions, meanwhile, are showing
the same rapid growth. Suominen emphasized that while there are major
opportunities to be gained from these increased ties, Latin American
overall influence is still very small compared to China's other trading
partners, and vice versa. Trade barriers need to be overcome, Suominen
concluded, for these trade and investment relationships to continue and
to expand.

John Delury, director of the China Boom Project and
associate director at the Asia Society’s Center on US-China Relations,
responded to the question of "what happens when it really is ‘zero
sum’," speaking to the inevitable ramifications the current global
economic downturn could have on China’s political culture, investments,
and its relations with the rest of the world. Delury alluded to the
underlying "other level" of Chinese society, and instances of the
protests and demonstrations that are already regularly seen in China.

The panel also touched on China’s recent shift in attention, as a
result of the downturn, from the international economy to its domestic
economy. China’s priority right now is on maintaining growth and job
creation to combat civil unrest and promote public sector expansion in
an attempt to balance the decline in private investment. With regard to
the expanding development interests of both Latin America and China,
the panel emphasized further economic integration, Latin America’s
eagerness to learn from China's experiences, and the "win-win
situation" created as inter-regional development strengthens.

Reported by Kyle Carroll

Excerpt: China's growing influence in Cuba, and how American policy might adapt in response (4 min., 29 sec.) 

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Listen to the complete program (1 hr., 26 min.) 

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