Columbia International Affairs Online: Policy Briefs

CIAO DATE: 04/2012

Is Chinese FDI pushing Latin America into natural resources?

Miguel Pérez Ludeña

March 2012

Columbia Center on Sustainable Investment


Chinese direct investments in Latin America reached US$15 billion in 2010, 90% of which was in the extractive industries. An analysis of the figures shows that it is mainly through trade, rather than through FDI that China is influencing South America's productive structure. Moreover, there is potential for Chinese FDI to diversify into other sectors, especially in infrastructure construction and manufacturing for the Brazilian market.