China’s increasing presence in Colombia, Ecuador, and Peru

LSE Global South Unit
WORKING PAPER SERIES
Strategies and Counter-strategies:
China in the Andean Region of South America.
By Ádam Chimienti and Benjamin Creutzfeldt.

ABSTRACT
.
lse.ac.uk/ By employing a comparative method that analyzes China’s increasing presence in
dierent Latin America countries, this study explores key features and implications of
Beijing’s approach towards this region. Colombia, Ecuador and Peru are used as case
studies to evaluate China’s diplomatic rhetoric and the degree to which trade and
investment realities live up to the goals proclaimed. Each of the countries examined
seeks a more balanced relationship with external actors and recognizes China’s
increased presence in the domestic political economy. Beijing seeks to distinguish itself
as a soft power and “South-South” partner, and yet its ability to maintain this stance is
complicated by the inevitable asymmetry that a rising China implies. e paper argues
that China’s economic involvement in terms of trade, aid, loans and investment is
indisputably important, but just one opportunity amongst many for these countries to
achieve the political and economic goals that they have set for themselves.
JEL Classication: F23, F63, 012, 019, 054, Q33, Q56.
Keywords: China relations with South America, neoliberal economics, win-win,
South-South cooperation, Washington Consensus, FDI.

I
NTRODUCTION
.
We employ a comparative case study method to analyze some of the implications of
China’s increasing presence in Latin America (LAC). Our departure point is “e
China Policy Paper on Latin America” (China, 2008), which emphasized win-win
rhetoric to characterize the rapidly growing political and economic ties between China
and Latin America in the 2000s. e content of the Policy Paper, along with policies,
principles and pledges laid out over the past decade by Chinese ocials concerning the
China-Latin America relationship, is examined against the unfolding outcomes of
China’s growing involvement in three Andean countries in the South American region:
Ecuador, Colombia and Peru.
1
rough these case studies we shall also address three
specic themes: the extent to which growing ties with China seem to be transforming
the development strategy of each country, whether a stronger relationship with China
has aorded the receiving countries greater exibility and pragmatism in the design
and execution of economic policy, and the eect that the longstanding relationships of
each country with the United States are seeing upon the deepening Chinese presence. Read Article