China-Latin America Trade Reaches Peak High of $300 Billion in 2020

The trade relationship between China and Latin America has grown exponentially since 2000 and has reached its peak high of $300 billion in 2020.

This surge in trade is primarily attributed to China’s rapid industrialization and urbanization which has, in turn, set off a surge in demand for raw materials. The commodities which have seen a marked increase in demand include – oil, iron ore, agricultural goods, and timber. So far, China is Latin America’s largest trading partner.

Latin America, especially countries like Brazil, Mexico, and Chile, have also been reaping benefits from the growing bilateral trade. China permanently resides amongst their top trading partners. Additionally, China and Latin American countries are also forming reciprocal investment deals in the energy, transportation, and technology sectors.

In the long-term, China’s economic and trading deals with Latin American countries can be beneficial for both. The growth in trade relations will result in more goods and services for Latin America and more investment for China. Moreover, China’s improved relations with the region could result in greater Latin American influence in international trade negotiations.