China in Latin America: Economic Results and Prospects of the Belt and Road Initiative

Nikolić, Jovana (2024) China in Latin America: Economic Results and Prospects of the Belt and Road Initiative. In: The 4rd “Dialogues on China” International Academic Conference: Harvesting the winds of change: China and the global actors. Institute of International Politics and Economics, Belgrade, pp. 327-347. ISBN 978-86-7067-338-0

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Abstract

The paper explores the relations between the People’s Republic of China and the countries of Latin America and the Caribbean (LAC) within the framework of China’s Belt and Road Initiative (BRI), focusing on the economic results achieved in this region from 2017 to 2023. The countries within the LAC region officially became involved in the BRI in 2017, with Panama leading the way by signing a Memorandum of Understanding the same year. By the end of 2023, 21 Latin American and Caribbean countries had become part of this global initiative. Brazil, the largest economy of the LAC region, is not among them despite its strong political and economic ties with China. The author conducts an analysis of the outcomes of the BRI in the region between 2017 and 2023. There is a consensus among scholars that the relationship between China and the LAC countries in the 21st century emphasises economic cooperation rooted in the strong political and diplomatic collaboration developed in the latter half of the 20th century. However, researchers hold differing viewpoints on the benefits the LAC countries receive from deepening cooperation with China. Therefore, another goal of this paper is to contribute to a wider debate in the academic literature concerning the nature and effects of the Chinese presence in the LAC region by delving into the mentioned relations within the BRI. The findings of the paper indicate that the inclusion of LAC countries into the BRI represents a further step in the deepening of economic relations between China and the LAC region in the 21st century. The significance of the BRI in the LAC region is evident through the increasing influx of Chinese investments and the execution of projects in energy, transportation, and metals sectors, with a notable trend towards investment in ‘new infrastructure’, particularly in telecommunications and renewable energy. However, this development also raises concerns and challenges, including the potential risk of over- indebtedness for local economies, environmental protection issues during the execution of various projects, and the absence of a cohesive regional strategy for engagement with China.

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