Is China’s economic expansion responsible for pushing Latin America back in the periphery of the world economy?

Defraigne, Jean-Christophe [UCL] Villalobos Pozo, Rodolfo David [UCL]

This chapter analyses to what extent China’s economic penetration into Latin America has transformed the role of Latin American economies in the global division of labour. The dramatic increase of Chinese trade with LAC has fostered debates over the phenomenon of a relative deindustrialization labelled reprimarización. Indeed, China-Latin American trade patterns constitute a classic case of North-South relations. Latin America would find itself in the economic periphery vis-à-vis China that would replace the traditional Western industrialized economies in the position of economic centre. Focusing on the large economies of Latin America (Argentine, Brazil, Chile, Colombia and Mexico) that developed a significant industrial base and large manufacturing firms in the 20th century, this chapter shows that the role of China is often overestimated and that reprimarización was already well engaged before the Chinese commercial penetration of Latin America.