[The Economist] What does China’s reopening mean for Latin America?

Summary

- Latin America had been developed by the commodities.

- China reopnes its border "after three years of lockdowns."

- Becuase of that reopening, there is some rumors that China may demand more commodities than the last three years; "price of copper jumped by 7% in a day"

- From 2000, "trade with China grew from $12bn." By 2021, China became "South America's top trading partner" (central America => still US )

- "Booming trade has led to complacency"; this complacency "overlooks structural issues in China, such as a domestic property slump and the fallout from a trade war with the United States"
- No more new loans from China (after China's bad experiences)

- However, even though China reopens its borders, it is not expected to provide financial support to South America countries. (as China shifted its key industry to "services and manufacture of high-tech goods, electric vehicles and renewable-energy products": FDI by China into raw materials had fallen to 46%)
- Instead, China focuses on investing in infrastructure. (main purpose: to strengthen China's food security)

- However, this strategic move "has ruffled feathers in Washington;" "it put pressure on Brazail not to allow Huawei."

 

 

Vocabulary (definition from Dictionary.com)

coffer	to deposit or lay up in or as in a coffer or chest.
swell	to grow in bulk, as by the absorption of moisture or the processes of growth.
	"Poverty fell and government coffers swelled as China bought the region’s grains, metals and hydrocarbons."
complacency	a feeling of quiet pleasure or security, often while unaware of some potential danger, defect, or the like; self-satisfaction or smug satisfaction with an existing situation, condition, etc.
	"Booming trade has led to complacency among some Latin American politicians."
fallout	an unexpected or incidental effect, outcome, or product:the psychological fallout of being obese. effects; results:
	"But this overlooks structural issues in China, such as a domestic property slump and the fallout from a trade war with the United States"
plateau	a period or state of little or no growth or decline
	"But Andrés Bórquez at the University of Chile thinks that less of it may be needed—and that if China replenishes its copper reserves, which are at their lowest for 15 years, demand will eventually plateau."
splurge	to indulge oneself in some luxury or pleasure, especially a costly one
	"In 2021 two Chinese state-owned firms splurged $6bn collectively to buy Chilean and Peruvian electricity companies."
Ruffle someone's feathers	to upset or offend people (Merriam-Webster)
	"All this has ruffled feathers in Washington"
cosy up	- to seek to become intimate or to ingratiate oneself (with someone) - to draw close to (somebody or something) for warmth or for affection; snuggle up
	"South America has less to gain than Central America from cosying up to the United States."
overture	"an opening or initiating move toward negotiations, a new relationship, an agreement, etc.; a formal or informal proposal or offer:"
	Now that the leftist Luiz Inácio Lula da Silva is in power in Brazil, its government is likely to make more  overtures to China.

 

Reference

- The Economist, What does China’s reopening mean for Latin America?

- Vocab., The Dictionary.com