Trade Between China and Latin America: Free Trade Agreements and Strategic Alliances

Abstract

This paper studies China’s bilateral trade with Chile, Costa Rica and Peru from the perspective of intra-industry trade during the period 2000-2022. In particular, it analyzes the differences in the pattern of intra-industrial insertion in a context marked by the existence of free trade agreements with China. As a contrast, the paper also studies China’s trade with some countries that consider China to be their geopolitical and ideological ally, such as Cuba, Venezuela and Bolivia. The results show a low profile intra-industrial insertion, with the exception of some specific items related to electrical products and the automotive industry. Within Latin American and the Caribbean, countries with which China has free trade agreements have more significant trade than do countries that consider China to be their geopolitical partner.