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Unformatted text preview: Uniqueness Regional General Chinese investment in Latin America is strong and increasing. Economic Observer 13 — Byline Wang Xiaoxia, Economic Observer, Translated by Worldcrunch (“In America's Backyard: China's Rising Influence In Latin America,” Worldcrunch/Economic Observer, May 6, 2013, Available Online: , Accessed: 05/25/2013) Over the past five years, Chinese businesses have been expanding their footprint in Latin America in a number of ways, beginning with enhanced trade to ensure a steady supply of bulk commodities such as oil, copper and soybeans. At this year's Boao Forum for Asia, for the first time a Latin American subforum was created that included the participation of several heads of state from the region. Since 2011, China has overtaken the Netherlands to become Latin America’s second biggest investor behind the United States. China has signed a series of large cooperation agreements with Latin American countries in such fields as finance, resources and energy. According to the latest statistics of the General Administration of Customs of China, Sino-Latin American trade grew in 2012 to a total of $261.2 billion, a year-on-year increase of 8.18%. This trend risks undermining the position of the United States as Latin America’s single dominant trading partner. In 2011, the U.S.-Latin American trade volume was $351 billion. Latin America in transition to China’s SOI- (domestic problems hamstring US action) Regenstreif 6-12-13, Gary: Editor at Large at Reuters, Special projects. Quoting Eric Farnsworth: vice president of the Council of the Americas and Americas Society, an international forum on social development and open markets “The looming U.S.-China rivalry over Latin America” The United States, Latin America’s largest trading partner throughout much of its history, still retains this position. Washington has now signed free trade agreements with more than a third of the hemisphere’s nations and annually exchanges more than $800 billion in goods and services with Latin America — more than three times the region’s commerce with China. In Obama’s first term, however, the administration was widely viewed as neglecting Latin America. And China has moved in fast . China built its annual trade with the region from virtually nothing in 2000 to about $260 billion in 2012. In 2009, it overtook the United States as the largest trading partner of Brazil, the region’s powerhouse — largely through massive purchases of iron ore and soy. Other data is telling: In 1995, for example, the United States accounted for 37 percent of Brazil’s foreign direct investment. That dropped to 10 percent in 2011, according to the Council of the Americas, which seeks to foster hemispheric ties. Washington’s renewed ardor is at least partly because of the fear that China will repeat in Latin America the economic success it has built in Africa. China has been able to present itself as a benevolent partner there, which has played well against the West’s history of meddling in domestic affairs. “It’s about influence and leverage ,” said Eric Farnsworth, vice president of the Council of the Americas, “…The region matured and expects to be treated in real partnership rather than [in the] patronizing way it happened in the past.” The challenges facing Beijing and Washington lie in how each approaches the region. Washington confronts lingering resentment about its historic regional interference, stretching back to the 1823 Monroe Doctrine, and its continuing desire to mix business with policy — which muddies its approach to trade and investment. Washington’s domestic problems, its pivot to Asia and a host of global crises, also serve as distractions that could keep its actions in Latin America from matching its words — as has happened before. China, meanwhile, is largely viewed in the region as unencumbered by ideology. It approaches opportunities almost exclusively on commercial terms there. Chinese aggression Transition now- Chinese involvement Valencia 6-24-13 New York-based foreign affairs analyst and is a contributing writer for the World Policy Institute and Global Voices Online World policy Institute: “US and China: The Fight for Latin America” June 24, 2013 - 6:46am By Robert Valencia As a sign of its growing importance, China and the United States have courted Latin America more than usual. In May, President Barack Obama visited Mexico and Costa Rica while Vice President Joe Biden visited Colombia, Brazil, and Trinidad and Tobago. Shortly after these trips, President Xi went to Mexico and Costa Rica to foster economic cooperation. China’s active involvement in Latin American geopolitics can be traced back to 2009. Chinalco, China’s largest mining company, signed a $2.2 billion deal with Peru to build the Toromocho mine and a $70 million wharf in the Callao port. Since then, Peru has sent 18.3 percent of its exports to China, making China Peru’s largest trading partner. China’s imports to Peru, however, rank second with 13.7 percent of the market while the United States holds first place with 24.5 percent. China has the upper hand with the Latin American leftist countries in terms of infrastructure and technology. In 2009, Chinese telephone manufacturer ZTE played an instrumental role in assembling the first mobile phone in Venezuela known as “El Vergatario” (Venezuela slang for optimal). Former President Hugo Chávez introduced this new phone to low-income families making it the world’s cheapest phone ($6.99 for a handset). Additionally, China landed rail construction projects in Argentina and Venezuela and has become a major buyer of farm products and metal in South America. Between 2011 and 2012, China purchased nearly 58.02 million tons of soy from Argentina, up from 52 million in 2011 and 2010. Chinese aggression now- incentives for involvement Mallen 6-28-13 Latin America reporter for the International Business Times quoting Michael Cerna of China Research Center, graduate student in International Policy Management at Kennesaw State By Patricia Rey Mallén on June 28 2013 9:53 PM “Latin America Increases Relations With China: What Does That Mean For The US?” China has had its sights on Latin America for the past decade and is now positioning itself as a competitive trade partner in the region. The populous, rapidly developing Asian nation covets oil, soybeans and gold, of which Latin America has plenty, and has been slowly but steadily increasing its presence and its trade with several countries there. The U.S., whose history of blocking outside political influence in Latin America going back to the Monroe Doctrine, has been directing its attention elsewhere, as Michael Cerna of the China Research Center observed. “[The U.S.'] attention of late has been focused on Iraq and Afghanistan, and Latin America fell lower and lower on America’s list of priorities. China has been all too willing to fill any void,” Cerna said. U.S. influence declining – independence and backlash Martinez 3-23-13 Columnist for Sun Sentinel May 23, 2013|Guillermo I. Martinez “America losing influence throughout Latin America” Once upon a time, as many fairy tales start, the United States was the prevailing force in Latin America. It had a coherent policy for its southern neighbors, and its opinions mattered to those who governed in the region. Despite President Barack Obama's recent trip to Mexico and Costa Rica, and Vice President Joe Biden's upcoming trip to the region, that is no more . The days when John F. Kennedy created the Alliance for Progress and was a hero to the young throughout the western hemisphere have been gone for more than half a century. The time when Jimmy Carter pledged to back only those governments that respected human rights and encouraged that caudillos be ousted is also a historical footnote. True, the world has changed. The attacks of September 11, 2001 made everyone look to the East; to Iraq, to Afghanistan, to Iran, Syria and other countries in the Middle East. Israel is still crucial to American foreign policy, more so now that militants are willing to die to kill Americans and Israelis. Latin America also changed when the late Venezuelan president Hugo Chávez was elected. The rising price of oil gave Chávez riches beyond belief and he began sharing it with similar-minded leaders in Cuba, Nicaragua, Bolivia, Ecuador, Uruguay and Argentina; just to name a few. Colombia once depended greatly on the Plan Colombia assistance from the United States to fight the FARC guerrillas and the drug lords that governed much of the country. The emphasis on the Plan Colombia since Juan Manuel Santos took office has decreased. Santos also believes in negotiations with the FARC and closer ties to those who govern in Venezuela. Mexico counted on American intelligence assistance and money to fight the drug cartels until Obama's visit to Enrique Peña Nieto, recently elected president. The communique at the end of the meeting talked about new economic cooperation between the two nations and how together they would fight the drug cartels. Not highlighted was the Mexican-imposed position that the United States agents would no longer be welcome in their country and that the cooperation would be respectful of their sovereign rights. Peña Nieto, the candidate of the PRI (Institutional Revolutionary Party) wanted a different approach to the war on drugs; one that would mitigate the violence that had killed thousands of Mexicans in the last decade. Finally, China has helped change the equation. After the fall of the Soviet Union and the Berlin Wall, for several years the United States was the only super power. When American presidents spoke, the world listened. Now China offers both a challenge to the United States, as a second super power, and has become an alternative economic trading partner for countries throughout the world. Still, it is inconceivable that American media and officials pay so little attention to the region. Maybe those around President Obama have not told him that Iran has close ties with Argentina, Cuba and Venezuela. Certainly the administration must know Cuba and Venezuela are so close that many critics of President Nicolás Maduro are now saying Cubans are helping to keep him in power. They talk, only part in jest, that there is a new country in the region called Cubazuela – the alliance between Cuba's Raúl Castro and Maduro's supporters is so close. It is true all have heard the main culprit of the drug trade in the world is American and European consumption. Yet the United States has waged war on the producers and importers, and not on the consumers at home. Seldom has Latin America been further from American influence . Many of the leftists' presidents in the region consider the United States their enemy. Others maintain cordial, or even friendly relations with Washington, but are quick to negotiate economic deals with China. Trade China controls trade- growth rates prove Marketwatch 6-25-13 Quoting Tommy Wong, President of Global Sources Exhibitions June 25, 2013 "China's trade value with Latin America rose by 8 percent in 2012 to $255.5 billion -- a significant volume," said Tommy Wong, President of Global Sources Exhibitions. The growth in China's trade with the region has surpassed that of the Unite States, which was 6.2 percent last year. "Demand for Chinamade products is on the rise. The China Sourcing Fairs here in Miami act as a platform for buyers and manufacturers to meet and conduct business. In fact, pre-registrations from buyers in Latin America are up by 15 percent this year -- indicating strong interest in the Fairs," said Wong. China winning trade war- flexibility Goodman 5-29-13 Bloomberg reporter responsible for economic and political coverage in Latin America quoting “Biden Circles Xi as U.S. Duels China for Latin America Ties” By Joshua Goodman - May 29, 2013 12:52 PM ET Competing with China’s checkbook isn’t easy for the U.S. Seeking South American soy, copper and iron ore, China boosted imports from Latin America 20-fold, to $86 billion in 2011 from $3.9 billion in 2000, according to calculations by the Inter-American Development Bank. By contrast, the U.S. policy of pursuing free-trade accords has been controversial, said Kevin Gallagher, a Boston University economist. “If I’m a Latin American leader, I’m very happy because I now have more chips to play with,” said Gallagher, author of the 2010 book “The Dragon in the Room,” about China’s inroads in the region. “The onus is on the U.S. to come up with a more flexible, attractive offer but that’s not so easy because it doesn’t have the deep pockets like it used to.” China beating the US - Brazil Ellis 6-6-13 Professor of national security studies, with the Center for Hemispheric Defense Studies, with a research focus on Latin America’s relationships with external actors, including China, Russia, and Iran “China's New Backyard Does Washington realize how deeply Beijing has planted a flag in Latin America?” BY R. EVAN ELLIS JUNE 6, 2013 In late May of this year, when U.S. Vice President Joe Biden went to Latin America for a three-day, three-country tour, Beijing was hot on his heels. Chinese President Xi Jinping arrived in Trinidad and Tobago just days after Biden left: Whereas Trinidad and Tobago's prime minister, Kamla Persad-Bissessar, characterized her discussions with Biden as "at times brutal," Xi's stop in Trinidad and Tobago included the unveiling of a children's hospital funded with $150 million from the Chinese government, discussion of energy projects, and meetings with seven Caribbean heads of state. Xi's itinerary took him to Costa Rica and Mexico on June 4 to 6, but his shadow followed Biden all the way to Brazil. In Rio de Janeiro, Biden referred to a new "strategic partnership" between the United States and Brazil, yet his words' impact was undercut by the strategic partnership that Brazil has had with China since 1993 and the much-publicized fact that China overtook the United States as Brazil's largest trading partner in 2009 (trade between China and Brazil exceeded $75 billion in 2012). It's not an accident that Brazilian President Dilma Rousseff made a state visit to China in April 2011, prior to paying one to the United States. Make no mistake : China is now a presence in the region. Xi's trip to Trinidad and Tobago is only the second visit by a Chinese president to the Caribbean -- his predecessor, Hu Jintao, visited communist Cuba in November 2008 -- but China and the Caribbean's economic and political ties have been growing rapidly. On this trip, Xi promised more than $3 billion in loans to 10 Caribbean countries and Costa Rica. Xi's choice of three destinations near the United States, followed by a "shirt-sleeves" summit with U.S. President Barack Obama on June 7 and 8 at the Sunnylands resort in California, sends a subtle message that the new Chinese leadership seeks to engage the United States globally as an equal -- without the deference shown in the past to the United States in countries close to its borders. Agriculture China increasing ag ties now MercoPress 6-12-13 News agency based in Montevideo, Uruguay. It provides information focused on Latin America and the South Atlantic Wednesday, June 12th 2013 - 07:20 UTC “China set eyes on Latan agriculture to promote cooperation and food security” “China is determined to promote cooperation and food security, with an emphasis in technological development with Latinamerica” said Minister Han Changfu at the conclusion of the forum which was organized by the Chinese government and the UN Economic Commission for Latinamerica and the Caribbean. To this effect China has already earmarked 50 million dollars to finance projects in Latinamerica, one of which is to increase and incorporate an additional half a million hectares of farming land in Argentina. Antonio Prado, Deputy Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC) said that there is a raft of complementation opportunities in the agricultural sectors of Latinamerica and China which can help build a strategic trade and technology relationship. Political Relations Latin America wants China now because they’re looking to counterbalance the U.S. Ellis, 13 (Evan, professor of national security studies, modeling, gaming, and simulation with the Center for Hemispheric Defense Studies, Ph.D. in political science with a specialization in comparative politics, “Chinese Soft Power in Latin America,” China Culture, 2013-07-16, Online, , accessed 7/18/13) PE Brazilian President Luiz Inacio Lula da Silva and Chinese President Hu Jintao celebrate at closing of investment and trade seminar. Hopes for the PRC to Serve as a Counterweight to the United States and Western Institutions. China’s historical status as a “leader of the developing world” positions it as the natural ally of the new generation of Latin American populist leaders, such as Hugo Chávez, Rafael Correa, and Evo Morales. During his first trip to Beijing after being elected president, for example, Morales proclaimed himself to be a “great admirer of Mao,” while Chávez has exclaimed that Mao and South American revolutionary icon Simón Bolívar would have been “great friends.” While these leaders may primarily be seeking Chinese investments and commodity purchases, the position of the PRC as a geopolitical “alternative” to the United States shapes the way that they court the Chinese. In permitting such hopes, the PRC has, to date, been careful not to associate itself directly with the antiU.S. activities or rhetoric of these regimes, so as not to damage its strategically important relationship with the United States and the West. Nonetheless, the relationship cannot avoid some flavor of the relationships between the Soviet Union and its Latin American client states during the Cold War. Bolivia turned to China to purchase K–8 combat aircraft, for example, after the United States blocked its ability to procure aircraft from the Czech Republic. China’s expanding political relations Dosch and Goodman, 12 (Jörn, Professor of International Relations and Deputy Head of School (Research) at Monash University, Professor of Chinese Politics at the University of Sydney, “China and Latin America: Complementarity, Competition, and Globalization,” Journal of Current Chinese Affairs 1/2012: 3-19, page 3-4, Online, , accessed 7/18/13) PE At the same time, economic relations go substantially beyond trade, and are also perhaps more visibly characterised by the often successful attempts of Chinese state-owned corporations (such as PetroChina and Sinopec) to acquire shares in Latin American oil and mineral commodities exploration companies. On the political side, Beijing’s involvement in the Western hemisphere has materialised in the establishment of socalled “strategic partnerships” with several states in the region; China’s training of increasing numbers of Latin American military personnel; and attempts to expand the ties of the Chinese Communist Party (CCP) with political parties across the continent. These examples of the intensifying Sino-Latin American links seemingly support a neorealist perspective according to which Beijing uses trade, investment, development aid and diplomacy in an attempt to balance the regional and global dominance of the United States and other OECD nations. Li (2008: 195) argues that China is taking advantage of a power vacuum in the region that was created by the United States’ and Russia’s declining interest in Latin America. Uniqueness – China is increasing influence in Latin America – recent trip proves Funaro, 13 (Breaking News writer in Los Angeles, “Xi flies to Mexico as China battles US for influence in Latin America,” Global Post, June 4, 2013 13:51, Online, , accessed 7/17/13) PE Chinese President Xi Jinping is making the most of his four-country tour of the Americas to position China as a competitor...
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