Revisiting China’s Investment in Latin America

It is easy to understand China’s increasing enthusiasm for overseas investment, given that its economy is continuing to grow at a relatively high speed and its foreign exchange reserves are expanding. Promoting overseas investment under the national “go global” strategy not only helps China tap into the external market and embrace a more important role in world economic affairs, but is beneficial to the economy and society of host countries as well. China’s investment in Latin America serves as a good example. Apart from helping to fill in the shortfall of capital, Chinese investment also enhances employment and infrastructure in many Latin American countries. In order to increase the stock of Chinese investment in Latin America to US$250 billion by 2025, as Chinese President Xi Jinping declared in January 2015, Latin American countries need to improve their domestic environment for investment, while Chinese enterprises must learn to take on more corporate social responsibility (CSR). Furthermore, Latin American countries and China should work together to develop broader and more efficient channels to exchange market information about investment opportunities.