What do Latin-Americans think of China? Soft Power, Trade and Investment

• In Event: Trade Preferences in Developing Countries

Abstract

In Latin America, China is one of the top trade partners and resources of foreign direct investment (FDI) of many countries. China invests heavily in the extractive industry and infrastructure and exports manufactured goods to Latin America. However, trade and investment from China are often criticized by politicians and scholars for deindustrializing the region and creating negative social and environmental impact on the local communities of the host countries. Despite the emergence of a literature and databases on the rise of China in Latin America, we still do not know what Latin-Americans think of China’s economic presence. This paper explores how China is perceived by Latin-Americans by focusing on China’s economic presence in Brazil, Peru and Mexico, three countries that have different portfolios of trade and investment with China. I use observational and survey data and find that the different trade and investment schemes trigger different reactions in the public perceptions of China as a major global economic force.

Author

• Kehan Wang, Boston University