The Rise of China: Implications for Latin American Development

This article analyses the implications of the rapid economic rise of China for the development prospects of Latin America. Based on an analysis of the changing trade relations between China and 15 Latin American countries over the period 2000-6, it argues that these relations have significantly exacerbated the subcontinent's dilemma of being caught in the middle-income trap. At the same time, some of the key drivers behind China's economic success point to a possible solution, first and foremost the lessons provided by its proactive development strategy which has focused on developing domestic technological capabilities and diversifying the productive structure with a move up the value chain.