U.S. National Security Implications of Chinese Involvement in Latin America
Abstract
In this monograph, the author argues that China's pursuit of long-term strategic objectives is leading the country to increase its presence in Latin America, with serious national security implications for the United States. Sustained Chinese economic growth requires ever greater quantities of basic commodities such as petroleum products, coal, iron and steel, and strategic minerals. As the new generation of Chinese leadership under Hu Jintao has moved away from the more cautious approach of his predecessor, Jiang Zemin, China has begun to aggressively court Latin America as its principal source of supply outside Asia. Figures from the Chinese National Statistics Office show that, for example, 77 percent of all Chinese foreign investment outside Asia in 2003 went to Latin America. The pattern of Chinese investment in countries such as Argentina, Brazil, and Chile suggests that the Asian giant is seeking to assure access to critical commodities by constructing vertically integrated supply networks over which it has leverage. China is purchasing interest in key Latin American suppliers such as the Canadian minerals firm Noranda, or the Argentine oil subsidiary PlusPetrol Norte. It is also building cooperative relationships with supplier governments such as the joint oil exploration and refinery construction deals signed with Venezuela and Brazil in 2004. Where necessary, China is also investing in the infrastructure of Latin American countries to help them more effectively bring their products to market.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2005
- Accession Number
- ADA434999
Entities
People
- R. E. Ellis
Organizations
- United States Army War College