Is Latin America a Strategic Spot for the Chinese market?
Over the last fifteen years, Chinese Government has experienced an increasing attention on the possibilities that Latin American market can provide to them.
This article seeks to shed light on the current situation between both regions, and their future possibilities.
According to Chinese policy, in recent years the country has developed a new global strategy: Africa, Latin America and the Caribbean have become as key-players on its rise to the international scene.
Since 2000, China has settle its action on bilateral free trade agreements and loan commitments. Despite its evolution, the role assumed by China is yet far from a real partnership with Central and South America.
In future, commerce and investment will be the basis for establishing a lasting partnership and a socio-economic development in manufacturing, labor, services and financial support.
Which are the main factors that define their relationship?
The relationship is based on three basic purposes:
- Political Relations:
China has currently become a permanent observer in the Organization of American States and a member of the Inter-American Development Bank. The country also participates actively in the Economic Commission for Latin America and the Caribbean.
In addition, China has signed free trade agreements and institutional arrangements with some of the regional countries.
- Economic Relations:
China plays a leading role in the future economic scene in the region. Latin America exports to China are raw materials, such as minerals, ores, oil seed, meat, cooper and soybeans.
Economic Relations are mostly conducted by Chinese Public Sector: Trade, Investment and Financing enhance the mutual cooperation and the collaboration is constantly increasing.
The Chinese investment effort has been particularly strong in two important fields: Energy and Infrastructure.
- Cultural Relations:
Chinese cultural expansion is closely linked of their latest conception of International Relations based on pragmatism and soft power.
In recent years, many Confucius Institutes have started their activity in Latin America, but also Spanish language has experimented a huge growth in China: educational and cultural exchanges are on the rise.
Is there ROOM ENOUGH for a common trade based on high value-added?
Latin America suffers from a scarce innovative effort, while China struggles to turn its economic system into an innovation model, highly rooted in the high value-added.
ICT-based services, Information technology and also Ecommerce are expected to grow in Latin America. The Global trends in Crossborder Ecommerce will be a challenge to the international integration of Latin America and a great opportunity for MSMEs.
Are you already familiarized with Crossborder Ecommerce and B2B, B2C, C2C, B2G and C2B Models? In search of an Ecommerce Consultancy Agency?
From 2 Open we can help you develop your business and to boost your company into International Sales.
2Open on Spanish radio: Business in China?
Recently, we were invited to a local Spanish radio program called “Onda Cero” in Cáceres City. Vicente Pozas, the host of the show, asked some interesting questions to our colleague David González regarding Digital Business in China. For a lot of people in Europe, China is a far away land with a different culture, different people, and different ways to make business. People are getting interested in China, it has had a huge economical growth in the past few years and interest of foreigners has grown accordingly.
The talk mainly focused on China’s development in certain technological areas, the business opportunities it offers, and the considerations that have to be taken into account if one should intent to do business in China. David González talked about the differences in population of major cities in both countries and the way e-commerce in China has surpassed any other country in the world. He also stressed the way the Chinese middle-class people have gained more purchasing power and how all of this can be translated into a broader potential market for any business.
After throwing out some interesting figures about China, he talked about failure and success cases that foreign companies have had when trying to enter the Chinese market, the limitations and the room for mistakes that exists in the country, and the complexity of making business with a Chinese businessperson.
Although the talk focused mainly on China and the way they make business, David got the opportunity to talk about 2Open, our business values, and the way we carry out every project with passion and commitment. The complexity and the obstacles that a business in China could present and how a company like 2Open can make the whole process a lot simpler and successful.
Here is the audio of the interview with David González on the Spanish radio show “Onda Cero”, sadly the audio file is only available in Spanish, but if you have a particular interest on it please leave a comment and we will post an English translation of it.
This article was edited by Andres Arroyo Olson from 2Open.