China Latin America business has been booming in the past years to a point where China has become the second largest trade partner after the United States. This region is viewed by the Chinese as a new emergent market with endless lucrative opportunities. In this article, you will learn about the fundamentals of China Latin America.
The region located to the south of the United States is called Latin America which is divided into North America, Central America and South America. The countries that make up the region are Mexico, Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela.These countries are the base for the China Latin America buzz.
The People’s Republic of China (PRC), better known as China, is located in Asia and is the most populated country in the world with over 1.3 billion people. The country is currently ruled by the Communist Party of China. Over the past decades, China has solidified its role as the factory to world. No matter which country you live in, you will always find an abundant supply of Chinese products.
China Latin America business deals has various advantages for China as they view the region as endless opportunities for Chinese exporters to sell a large variety of low priced products which are ideal for the Latin American market.
On the other end, Latin America has also found a lot of benefits from its relationship with China. Brazilian Soy and iron export have tripled in recent years. Chilean copper has also seen staggering increase. This region is still untapped and possesses vast amount of raw and natural resources. This has attracted a lot of foreign interest and contributed to the strong China Latin America trade.
As you can clearly see, China Latin America has greatly benefited both parties. This has allowed both regions to incur less risk by diversifying their business partners. They have also been able to increase their distribution channels into new markets.
By Christoph from Pixabay