The China-Latin America Axis : Emerging Markets and Their Role in an Increasingly Globalised World

This second edition explores and accounts for the many changes in the emerging markets of China and the Latin American countries since 2011. Taking account of major developments such as the rapid expansion of the Chinese state and the on-going effects of the global recession, the authors present current case studies and data on both Chinese and Latin American companies, including updates on those included in the first edition and the presentation of new innovative start-ups. Including an international relations perspective alongside business strategy and global markets, __The China-Latin America Axis__ second edition presents the drastic changes in the globalized economy in the past five years. Acknowledgements 6 Contents 7 About the Authors 9 List of Figures 11 List of Tables 13 1: China and Latin America in the Twenty-­First Century 16 1.1 Context and Motivation 16 The China Dream, One Belt, One Road, and the China- Latin America Axis 20 From China Dream to OBOR 21 1.2 Structure 25 References 27 2: Emerging Markets, the Markets of the Future 31 2.1 Introduction: The Emergence of Markets versus Power 31 2.2 When Emerging Markets Emerged 32 2.3 Trade and Investments 35 2.4 Main Characteristics 42 2.5 Local Players 44 2.6 Emerging Cities 48 2.7 China-Latin America: The Emerging Markets’ Axis? 58 2.8 Conclusion 61 References 62 3: China-Latin America: The Emerging Markets’ Axis 67 3.1 Introduction 67 3.2 China-Latin America 69 1+3+6 74 Trade 74 Investment 79 Finance 90 3.3 The Main Players 95 Latin America 96 China 115 3.4 Conclusions 121 References 125 4: Rivals and Partners 144 4.1 Introduction 144 4.2 What Is China Seeking from Its Engagement with Latin America? 145 4.3 What Latin America Is Seeking from Its Engagement with China 153 4.4 US and European Perspectives 160 4.5 Perspectives from the USA—The Dragon in the Parlour (or Backyard) 161 4.6 The European Union Perspective 164 4.7 Regional Integration in Latin America 168 CAN (Comunidad Andina de Naciones) 168 CARICOM (Caribbean Community and Common Market) 169 Other Blocs 169 UNASUR 169 ALBA 170 Pacific Alliance 170 CELAC 171 Mercosur/Mercosul 171 4.8 Conclusions 176 References 177 5: Chinese Dragons Disembarking in Latin America 189 5.1 Introduction 189 5.2 Chinese Companies’ Main Characteristics 190 Prospects 198 5.3 The International Expansion of Chinese SMEs3 199 Different Stages of Development 200 Different Types of SMEs 200 Diversity in Regional Development Patterns Within China 201 Different Definition for SMEs 201 5.4 The Chinese Dragons in Latin America6 202 Competition in Latin American Markets 205 The Spanish Connection 207 5.5 Conclusions 208 References 211 6: Multilatinas and the China Challenge 217 6.1 Introduction 217 6.2 Multilatinas’ Development and Main Characteristics 220 Three Main Drivers of Multilatinas’ Expansion 225 Three Main Characteristics of Multilatinas3 227 6.3 The Multilatinas and China 232 6.4 Conclusions 234 References 235 7: Conclusions 238 7.1 Introduction and Summary 238 7.2 Roaring with the Lion 239 7.3 What’s Next for Latin America? 241 7.4 Concluding Remarks 244 References 246 Appendix A: China’s Policy Paper on Latin America and the Caribbean (FMPRC, 2016) 247 Preface 248 Part I Latin America and the Caribbean: A Land Full of Vitality and Hope 249 Part II China’s Relations with Latin America and the Caribbean in the New Stage of Comprehensive Cooperation 249 Part III Bringing the Comprehensive and Cooperative Partnership to New Heights 250 Part IV Further Strengthening Cooperation in All Fields 253 1. In the Political Field 253 (1) High-Level Exchanges 253 (2) Exchanges of Experience on Governance 253 (3) Inter-governmental Dialogue and Consultation Mechanisms 253 (4) Exchanges Between Legislatures 254 (5) Exchanges Between Political Parties 254 (6) Local Exchanges 254 2. In the Economic Field 254 (1) Trade 254 (2) Industrial Investment and Capacity Cooperation 255 (3) Financial Cooperation 255 (4) Energy and Resources Cooperation 256 (5) Infrastructure Cooperation 256 (6) Manufacturing Cooperation 257 (7) Agricultural Cooperation 257 (8) Scientific and Technological Innovation 258 (9) Space Cooperation 258 (10) Maritime Cooperation 259 (11) Cooperation on Customs and Quality Inspection 259 (12) Cooperation Between Trade and Investment Promotion Institutions and Business Associations of the Two Sides 259 (13) Economic and Technical Assistance 259 3. In the Social Aspects 260 (1) Social Governance and Social Development 260 (2) Cooperation on Environmental Protection, Climate Change and Disaster Reduction 260 (3) Poverty Reduction Cooperation 261 (4) Health Cooperation 261 4. In the Cultural and People-to-­People Fields 262 (1) Cultural and Sports Exchanges and Cooperation 262 (2) Education and Human Resources Training 262 (3) Exchanges and Cooperation in Press, Publication, Radio, Film and Television 263 (4) Tourism Cooperation 263 (5) Academic and Think Tank Exchanges 264 (6) Non-governmental Exchanges 264 (7) Consular Cooperation 264 5. International Collaboration 265 (1) International Political Affairs 265 (2) Global Economic Governance 265 (3) Implementation of the 2030 Agenda for Sustainable Development 266 (4) Response to Climate Change 266 (5) Cyber Security 266 6. On Peace, Security and Judicial Affairs 267 (1) Military Exchanges and Cooperation 267 (2) Cooperation in Judicial and Police Affairs 267 7. Collective Cooperation 268 8. Trilateral Cooperation 268 China’s Policy Paper on Latin America and the Caribbean (FMPRC, 2008) 270 Foreword 270 I. The Status and Role of Latin America and The Caribbean 271 II. China’s Relations with Latin America and the Caribbean 271 III. China’s Policy on Latin America and the Caribbean 272 IV. Strengthen China’s Comprehensive Cooperation with Latin American and Caribbean Region 273 1. In the Political Field 273 (1) High-level Exchanges 273 (2) Exchanges Between Legislatures 274 (3) Exchanges Between Political Parties 274 (4) Consultation Mechanisms 274 (5) Cooperation in International Affairs 274 (6) Local Government Exchanges 275 2. In the Economic Field 275 (1) Trade 275 (2) Investment Cooperation 276 (3) Financial Cooperation 276 (4) Agricultural Cooperation 276 (5) Industrial Cooperation 277 (6) Infrastructure Construction 277 (7) Resources and Energy Cooperation 277 (8) Customs Cooperation 277 (9) Cooperation on Quality Inspection 278 (10) Tourism Cooperation 278 (11) Debt Reduction and Cancelation 278 (12) Economic and Technical Assistance 279 (13) Multilateral Cooperation 279 (14) Chamber-of-Commerce Cooperation 279 3. In the Cultural and Social Aspects 279 (1) Cultural and Sports Exchanges 279 (2) Cooperation in Science, Technology and Education 280 (3) Cooperation in Medical and Health Care 280 (4) Consular Cooperation and Personnel Exchanges 281 (5) Media Cooperation 281 (6) People-to-People Exchanges 281 (7) Cooperation in Environmental Protection 282 (8) Cooperation in Combating Climate Change 282 (9) Cooperation in Human Resources and Social Security 282 (10) Disaster Reduction, Disaster Relief and Humanitarian Assistance 283 (11) Cooperation in Poverty Alleviation 283 4. On Peace, Security and Judicial Affairs 284 (1) Military Exchanges and Cooperation 284 (2) Cooperation in Judicial and Police Affairs 284 (3) Non-traditional Security Issues 284 5. China’s Relations with Latin American and Caribbean Regional Organizations 285 Appendix B: Latibex 286 A2.1. What Is Latibex? 286 A2.2. Main Features of Latibex 287 Appendix C: American Depository Receipts (Deutsche Bank, 2011) 289 A3.1. ADRs 289 A3.2. Capital Raising and Non-­capital Raising ADRs 290 A3.3. Global Depositary Receipts (GDRs)/European Depositary Receipts (EDRs) 290 A3.4. Buying and Selling DRs 291 A3.5. Why Do Investors Buy DRs? 292 A3.6. Why Do Companies Launch DR Programs? 293 ADRs 293 EDRs/GDRs 293 A3.7. A Useful Structuring Tool 294 Appendix D: Chile-China Free Trade Agreement (National Customs Service Gobierno de Chile, 2011) 295 A4.1. China 295 A4.2. Free Trade ­Agreement Between China and Chile 296 A4.3. Negotiation Process 296 A4.4. Matters Covered by the FTA 297 A4.5. Tariff Reduction Program 297 A4.6. China-Chile FTA on Service Trade Implemented (MOFCOM, 2010a) 298 Appendix E: China and Peru Signed Free Trade Agreement (MOFCOM, 2009b) 299 Appendix F: China Signs Free Trade Agreement with Costa Rica (People’s Daily Online, 2010) 301 References 303 Index 344 Front Matter ....Pages i-xvii China and Latin America in the Twenty-First Century (Gaston Fornes, Alvaro Mendez)....Pages 1-15 Emerging Markets, the Markets of the Future (Gaston Fornes, Alvaro Mendez)....Pages 17-52 China-Latin America: The Emerging Markets’ Axis (Gaston Fornes, Alvaro Mendez)....Pages 53-129 Rivals and Partners (Gaston Fornes, Alvaro Mendez)....Pages 131-175 Chinese Dragons Disembarking in Latin America (Gaston Fornes, Alvaro Mendez)....Pages 177-204 Multilatinas and the China Challenge (Gaston Fornes, Alvaro Mendez)....Pages 205-225 Conclusions (Gaston Fornes, Alvaro Mendez)....Pages 227-235 Back Matter ....Pages 237-343 Annotation The impressive growth of trade and investments between China and Latin America has attracted the attention of the business world and policy makers. This book analyses the business of the main players at both the country/region and company levels in the context of globalisation and growing importance of emerging markets in the world economy Gaston Fornes, Alvaro Mendez. Includes Bibliographical References (pages 295-335) And Index.