Did you know that China is one of the main commercial partners of South America? As an important source of direct foreign investment and contributions to energy and infrastructure, China’s role in Latin America has grown rapidly.

For example, in 2013, Chinese President Xi Jinping launched the Belt and Road Initiative (BRI) which includes more than 15 Latin American countries. China has promoted the BRI as an opportunity for nations to develop infrastructure and create new commercial opportunities with Chinese companies.

In 2000, the Chinese market represented less than 2% of Latin American exports. In the following eight years, trade grew at an average annual rate of 31%. Through this “Sur-Sur” cooperation, a milestone centered on aid, investment, and commerce. The Global Trade Analysis Project (GTAP) suggests a return to the raw materials export model and a reduction in industrial activity in Latin America, particularly in high technology sectors.

On the other hand, between 2000 and 2018, China invested $73 billion in the raw materials sector in Latin America, including refineries and processing plants in countries with significant amounts of carbon, copper, natural gas, oil and uranium.

You shouldn’t miss this opportunity. Merchak completed 29 years of experience in March 2024, and as an innovative trading company, we launched our newest arm in Shanghai, China. Contact our experts to learn more about how we can boost your business through customized solutions.