The evolving role of China in Africa and Latin America

22. August 2016

The Economist Intelligence Unit (August 2016)

China continues to play a pivotal role in both Africa and Latin America as a trade partner, investment facilitator and financial backer. China is now Africa’s single biggest trading partner, and Chinese foreign direct investment (FDI) into Latin America between 2010 and 2015 has been estimated at a substantial US$84bn. But China’s slowdown has weakened its import demand growth and contributed to a sharp fall in global commodity prices. Both Africa and Latin America, which run large trade deficits with China as they export mostly commodities and import higher value-added consumer goods, have taken a significant economic hit. How, then, will China’s relationship with both regions evolve in the years ahead in view of the instability and uncertainty caused by its economic rebalancing act? The report from The Economist Intelligence Unit assesses the opportunities for deeper relations between China, and its African and Latin American partners. LINK

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