Leonardo Gonzalez Dellan Outlines How Latin America Should Respond To Growing Deals With China

With the fast growth of China’s name and power in the global economy, Leonardo Gonzalez Dellan, an international trade expert, explains that Latin America embraces China as a trade partner, but the continent must continuously make efforts so as to limit the scope of China’s influence in the region.

 

Chinese-LatAm Trade

China and Latin America have been trade partners for a long time now, but their trade has multiplied up to 22 times since 2000. Development strategies such as the Belt Road Initiative, the Maritime Silk Road, and the Silk Road Economic Belt have all extended to include Latin America, including the 19,000 km-long fiber optic internet cables that extend from Chile to China. From 2015 to 2019, China has been working on directing investments towards the region, reaching up to $500 billion.

 

How Latin America Should Respond

All these investments and inclusion in development strategies could help develop Latin America, but Leonardo Gonzalez Dellan warns against being too complacent about the situation. Arthur Mutambara, well known political and writer in Zimbabwe, has outlined a response that Africa should follow in order to remain strong and stable with or without said strategies. Mr. Dellan agrees that Latin America should also do the same.

 

Being Proactive

Despite the influx of investments from China, Latin America must seek to continuously develop strategies to improve its economy. China is a welcome partner in building a strong future together, but it cannot be given the power to dictate Latin America’s course of action.

 

Unified Front

Another thing is that Latin American countries should come together in engaging with China. China is a dominant figure in the global economy, and if Latin American countries deal with them individually, they do not stand the chance to compete. However, if the countries work together, they would have stronger economic and political power to come up with better deals.

 

Embrace Technology

While Latin America is well known in producing crops and other raw materials for food production, the region must start looking into using modern technology to establish itself in other areas in the supply chain. This also includes getting ahead of Web 3.0, which could help bolster the region.