China in Latin America, Essay Example

It appears that short-term commodity trade with Latin America causes more benefits than harm given the large investment in new and expanding infrastructure. Currently, the Latin American economy is weak due to instability that resulted from hedge fund investment. Therefore, commodity trade will allow the region to improve its income, which is expected to provide leaders with the resources they need to stabilize their economies. I strongly agree with this statement. Trade with China is encouraged because the country is acting as an investor for the region when very few other countries are willing to do so. Latin America needs some financing assistance to get back on its feet, and it is evident that this is causing the region more benefit than harm because these nations would be unable to get out of their financial trouble on their own.

I disagree with the belief that China’s involvement in Latin America harms US free trade ethics by exploiting natural resources through state capitalism. Due to Latin America’s current financial state, the only chance they have of recovery is by allowing foreign entities to purchase their natural resources. While many individuals term this concept as “exploitation”, it is important to consider that allowing for the trade of these resources is one of the only options that the Latin American region has left. Instead, it appears that China, even though primarily interested in its own financial gain, is willing to work with Latin America to determine how both nations can be benefitted by these exchanges. Therefore, this “exploitation” is really an act of good business practices. Therefore, I disagree with this statement.

State capitalism has the potential to overrule democracy because of increased foreign investment. Overall, corporations, due to the powers of the World Trade Organization (WTO), often have the ability to override the decisions of governments. Currently, this concept is being tested in a hallmark case where Walmart is appealing to the power of the WTO to build its stores in locations in which local governments have previously prohibited this presence. Walmart believes that it is able to do so because it is a multi-national corporation, and the fact that under this classification, governance is blocking its free trade practices. Thus, it is evident that capitalism has the potential to surpass the powers of democracy.

In the case of the Chinese government, it is apparent that they are able to take control of the Latin American region due to a dependence that Latin American governments will form as a consequence of this relationship. Even though it is apparent that the current relationship between China and Latin America is mutually beneficial, it is not outwardly apparent that China will abuse this relationship at the present time. However, due to the power dynamic that has been established between these two groups, a power shift is within the realm of possibility.

Overall, while there is no evidence that proves that state capitalism has overruled democracy at the present time, there is potential for this power imbalance to occur in the future. To avoid this from occurring, it is beneficial to support Latin America’s economic recovery so they will not be subject to future unfavorable trade agreements at the hands of the Chinese government and/or businessmen.

I believe that this statement is false. While many people consider China to be a transitioning nation due to its increasing role in the world’s economy over the past several decades, its current standing is arguably as a developed economy. Therefore, the nation’s financial standing is no excuse for its poor human right’s records. Ultimately, the country is aware that it is able to have a strong economy due to its lax working regulations, and therefore has no true incentive to implement regulations or to enforce existing laws. In addition, the nation is very large, and its current law enforcement structure does not appear to allow for effective enforcement of workers’ rights laws even if the government were concerned with monitoring these practices.

While some could argue that China has become a colonial empire due to the trade power in has over Latin America, Africa, and Southeast Asia, this sentiment appears to be false. While these regions are at China’s mercy if they are to continue trade partnerships, trade with China is not their only option. Currently, the country is giving them the best deal for trade, so they are willingly participating in these exchanges. However, if these regions begin to believe that China has exerted too much control over their economic or political practices, it is feasible for these governments to withdraw trade deals from China and search for alternative options. This is not an example of colonial control because although China currently has partial power over these nations, this is not a forced relationship, indicating that this control is voluntary and changes to this partnership could be made if deemed necessary.

References

CQ Press. (2012). China in Latin America. Global Researcher, 6(11).

McLure J. (2012). State Capitalism. CQ Researcher, 6.