Region's trade opportunities, steady growth to entice Chinese businesses
Latin America is set to attract more Chinese businesses seeking trade and investment opportunities, adding greater momentum to both regional and global economies, market watchers and business leaders said.
The significant trade complementarity and intertwined interests of China and Latin America — along with their immense scope for cooperation in emerging industries — are expected to further enrich business ties.
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Brazil, Chile and Peru boast large, young populations and growing middle-income groups, which will further drive demand for consumer goods, technology and infrastructure, areas where Chinese companies excel, said Peng Bo, a researcher specializing in foreign trade at the Chinese Academy of International Trade and Economic Cooperation in Beijing.
"As these economies continue to grow, they offer substantial market potential for Chinese exports, providing an avenue for China to diversify its trade partnerships beyond developed economies," said Peng.
China saw its foreign trade value with Latin America soar 9.6 percent year-on-year to 2.79 trillion yuan ($391.82 billion) in the first three quarters of 2024, statistics from the General Administration of Customs show.
China's trade with Brazil, Colombia, Peru and Guyana, surged 12 percent, 17.7 percent, 15.1 percent and 16.1 percent, respectively.
Construction machinery, passenger vehicles, solar cells, trains, building materials, manufacturing equipment, electronics, textiles, garments and household appliances are China's main exports to Latin American countries.
In addition to metals, crude oil, natural gas and grains, Latin American countries' exports to China include passenger aircraft, steel and chemicals, timber, wine, coffee, fruit, meat and aquatic products.
Mauricio Hurtado, Chile's ambassador to China, said with the support of the China-Chile Free Trade Agreement and the tangible growth of the Belt and Road Initiative, economic and trade ties between the two countries will continue to grow in the coming years, with notable diversification in areas such as technology cooperation and trade in services.
"Currently, many Chinese companies are interested in visiting Chile to explore potential cooperation opportunities," he said. "We encourage these firms to visit Chile not only to strengthen the existing partnerships, but also to explore new opportunities for collaboration in fields like new energy, advanced materials and environmental protection."
Zhang Shaogang, vice-chairman of the China Council for the Promotion of International Trade, said: "China's continued commitment to deepening institutional opening-up and forging high-standard economic and free trade agreements, along with the rapid growth of its tech-driven green industries, has encouraged its companies to strategically invest in new manufacturing, services and innovation facilities in both developed and developing countries."
"The ongoing restructuring of global supply chains offers opportunities for Chinese companies to align their strengths with shifting market needs," he added.
Zhang said Chinese firms are showcasing their strong competitiveness in manufacturing sectors such as new energy vehicles, lithium-ion batteries and photovoltaic products, leading to increased acceptance of their presence in many countries.
Chinese automaker BYD views the Latin American market as crucial to its global business strategy, and is currently building new manufacturing facilities in the Brazilian state of Bahia.
Its Brazil unit will produce electric and hybrid vehicles, electric buses and trucks, and battery products for both local and global markets.
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BYD's new manufacturing base is anticipated to begin operations between this year and early 2025, according to an announcement from the local government. The initial production capacity is set at 150,000 electric and hybrid vehicles per year, with the potential to expand to 300,000 units in the future.
CINO Technology (Shenzhen) Ltd, a coffee machine manufacturer based in Shenzhen, Guangdong province, this year saw a significant surge in orders for coffee machines and tea makers from Latin American markets such as Bolivia, Chile, and Colombia.
"In the first three quarters, our exports to Latin American countries saw an increase of 20 percent year-on-year, with orders scheduled through December," said Liu Youliang, the company's president.
Despite the current global economic slowdown, Liu said that markets in Latin America, Southeast Asia and the Middle East have seen rapid growth over the past two years.
