Publication:
China’s rise in South America: the partner of choice?

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Authors
Rogers, Brandon M.
Subjects
U.S. hegemony
non-intervention
China’s rise
foreign investment
Good Neighbor policy
partner of choice
going-out
Western banks
natural resource
loans-for-oil
Washington Consensus
national champions
China Development Bank
foreign reserves
Advisors
Nieto-Gomez, Rodrigo
Date of Issue
2018-03
Date
Mar-18
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
As Chinese investment in South America has grown exponentially and influenced the region, has South America benefited from the investment? This paper features case studies of both Venezuela and Argentina to illustrate how Chinese investment has had different effects on these two economies. Venezuela has relied heavily on loans-for-oil to fuel its socialist economy and feed its political structure, resulting in very negative outcomes. On the other hand, Argentina has channeled Chinese investment mostly into infrastructure, such as energy diversification projects, with the construction of two hydroelectric dams, two nuclear reactors, and upgrades to its outdated railway systems. Chinese investment can boost South American economies if it is used for infrastructure that will lead to less reliance on additional Chinese loans. Unfortunately, both countries rely heavily on raw material exports and need to ensure that manufacturing and technology-based jobs are not lost in the process. As China gains more influence in the region, the United States needs to provide alternate sources of investment and bring to light the pitfalls created by the current Sino-South America partnership.
Type
Thesis
Description
Series/Report No
Department
National Security Affairs (NSA)
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Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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