Trade

What do you think are the reasons for China's focus on Latin America?  How should the US respond? Threat or opportunity?  What other factors are at play here?

China’s focus on Latin America is due largely to ensuring a healthy and stable trade relation, specifically oil trade. According to the article China consumes 1/3 of the world’s oil production, which Latin America has an abundance of. China’s “loan-for-oil” agreement between Latin America benefits both parties as it provides much needed funds to Latin America in exchange for the much needed oil to adhere to China’s energy demand. It is well known that the U.S. is Latin America’s dominant trading partner and with China’s intervention it is suspected that this new development will undermined America’s position. However, China’s involvement with Latin America can actually be beneficial to the U.S. In my opinion, the U.S. should respond with “open arms” as this involvement will bring about many opportunities for all parties. The oil Latin America has aids to China’s energy development, which in turn safeguards the energy supply for the U.S. In addition, the funds Latin America is gaining aids to the livelihood of the country which, as stated in the article, reduces “the impact of illegal immigration and drug trade.” Other factors at play here is America’s desire to maintain democracy and a free market economy. With Latin America’s livelihood increase it makes it easier for America to carry out its transition to democracy. On one hand you have China’s main focus on the economic state of the country and on the other hand you have America’s focus on the social state of the economy; both needed to help a country thrive.