February 13 2017 image description
by: jmhumire 0 Comments

Latin America Opens the Door for China in the New Trump Era

As Donald Trump takes office as President of the United States, it is still unclear how the triangular relationship between the United States, China, and Latin America will evolve. During the presidential campaign, Mr. Trump aimed his fire chiefly on China and Mexico as the sources of U.S. economic troubles and what he described as unfair trade. He has announced his intention to tear up the North American Free Trade Agreement (NAFTA) and to negotiate what he calls “better deals” with both Mexico and China. The first few months of his administration will reveal the details of such deals.

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March 15 2016 image description
by: jmhumire 0 Comments

Feeling the China Effect Globally

One indicator of China’s ascent as a global power is its ability to have an economic impact far beyond its border. In today’s world, events in China, both positive and negative, are affecting nearly every continent.

During the period of China’s spectacular growth, world markets were particularly transfixed on Chinese trade, investment, and loans. China continues to contribute about 30 percent to global economic growth, down from a 50 percent contribution between 2009 and 2011. Its demand unleashed a commodities boom that benefited nations in Africa and Latin America. Growth at 10 percent and massive trade surpluses helped to ease the worst effects of the global recession of 2008-2009, with the United States and Europe borrowing Chinese cash to pay for their stimulus programs.

China’s economic slowdown, or more accurately, its shift from export and investment-driven development to consumption, has had an equally dramatic effect around the globe.  The world is starting to feel this shift as countries that became overly dependent on the Chinese demand for commodities are feeling the pain.

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