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China’s Growing Trade Dominance in Latin America

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Latin American trade, China versus U.S.

China’s Growing Trade Dominance in Latin America

Over the past 20 years, China’s economic presence around the world has grown significantly, including in Latin America.

Now, China is one of Latin America’s largest trade partners, which is threatening U.S. dominance in the region. This graphic by Latinometrics uses IMF data to show trade flows between China and Latin America since the 1980s.

Two Decades of Trade Growth

Four decades ago, the United States had a much stronger trade relationship with Latin America than China did. In 1981, Cuba was the only Latin American country trading more with China than the United States.

Here’s a look at total trade flows between Latin America and the two countries since 1980. Latinometrics calculated trade flows as total exports plus imports.

Trade Flows by YearU.S. & Latin AmericaChina & Latin America
1980$64,916.46M$1,149.20M
1981$68,954.16M$1,524.78M
1982$58,601.14M$1,381.61M
1983$53,347.45M$1,973.34M
1984$61,829.84M$1,573.58M
1985$62,241.61M$2,489.73M
1986$54,441.85M$1,888.88M
1987$62,890.00M$1,721.23M
1988$70,673.07M$2,433.94M
1989$79,140.76M$2,149.71M
1990$91,090.09M$1,997.48M
1991$127,120.71M$1,741.68M
1992$144,422.66M$2,051.77M
1993$159,873.67M$2,923.49M
1994$182,872.71M$3,724.97M
1995$204,901.92M$5,847.65M
1996$241,927.58M$6,711.47M
1997$290,032.40M$8,609.87M
1998$308,555.72M$8,844.21M
1999$341,504.58M$8,138.22M
2000$400,901.25M$12,452.97M
2001$371,377.08M$15,818.76M
2002$361,536.31M$19,033.47M
2003$369,218.54M$29,215.64M
2004$420,744.88M$42,242.20M
2005$477,850.02M$56,609.70M
2006$544,418.91M$77,528.04M
2007$585,446.96M$109,558.66M
2008$656,499.37M$140,274.87M
2009$493,741.65M$130,359.64M
2010$619,989.84M$193,853.31M
2011$751,891.79M$249,708.91M
2012$780,401.27M$264,908.73M
2013$785,444.16M$286,816.10M
2014$808,542.96M$281,412.70M
2015$728,071.40M$262,383.97M
2016$692,719.56M$245,403.45M
2017$750,289.25M$280,072.19M
2018$824,877.82M$331,131.25M
2019$807,868.87M$327,999.75M
2020$696,294.90M$311,584.87M
2021$895,309.53M$428,384.92M

Things stayed relatively stagnant until the early 2000s. Then suddenly, at the start of the new millennium, trade between China and Latin America started to ramp up.

This uptick was driven largely by Chinese demand for things like copper, oil, and other raw materials that the country needed to help fuel its industrial revolution.

Momentum has continued for two decades, and now China is the top trading partner in nine different Latin American countries. In fact, in 2021, imports and exports between China and Latin America (excluding Mexico) reached $247 billion—that’s $73 billion more than trade flows with the United States that same year.

Trade between China and Latin America is expected to keep growing, at least for the time being. By 2035, trade flows between the two regions are projected to more than double, according to World Economic Forum.

China’s Global Economic Presence

China’s trade takeover of Latin America speaks to a wider trend that’s happening on a global scale—over the last two decades, China has surpassed the U.S. as the world’s largest trading partner.

While China is likely to remain the world’s leading trade partner for the foreseeable future, growth is likely to slow in the short-term, given ongoing supply chain issues and geopolitical tensions that have disrupted the global economy.

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This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

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Economy

How Do Democrats and Republicans Feel About Certain U.S. Industries?

A survey looked at U.S. industry favorability across political lines, showing where Democrats and Republicans are divided over the economy.

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A cropped chart with the percentage of Democrats and Republicans that found specific U.S. industries "favorable."

Industry Favorability, by Political Party

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Much and more has been written, in the last decade particularly, about the U.S. political sphere becoming increasingly polarized. The two main parties—Democrats and Republicans—have clashed over how to run the economy, as well as on key social issues.

Perhaps unsurprisingly then, Democrat and Republican voters are also divided on various U.S. industries, per a YouGov poll conducted in 2022.

Between November 7-9th of that year, the market research firm polled 1,000 adult Americans, (sampled to represent prevailing demographic, racial, and political-party-affiliation trends in the country) on their opinions on 39 industries. They asked:

“Generally speaking, do you have a favorable or unfavorable opinion of the following industry?” — YouGov Poll.

In this chart we visualize the percentage with a favorable view of an industry minus those with unfavorable view, categorized by current voter status.

A higher percentage means more Democrats or Republicans rated the industry as favorable, and vice-versa. Negative percentages mean more respondents responded unfavorably.

Democrats vs. Republicans on Industry Favorability

From a glance, it’s immediately noticeable that quite a few industries have divided Democrats and Republics quite severely.

For example, of the sampled Democrats, a net 45%, found Higher Education “favorable.” This is compared to 0% on the Republican side, which means an equal number found the industry favorable and unfavorable.

Here’s the full list of net favorable responses from Democrats and Republicans per industry.

IndustryDemocrat Net
Favorability
Republican Net
Favorability
Agriculture44%55%
Trucking27%55%
Restaurant53%54%
Manufacturing27%53%
Construction23%49%
Dairy45%46%
Higher education45%0%
Technology44%36%
Food manufacturing15%37%
Transportation27%37%
Railroad37%35%
Mining-3%36%
Automotive19%36%
Grocery35%22%
Hotels30%35%
Textiles24%34%
Entertainment34%-17%
Shipping24%33%
Retail31%31%
Book publishing30%29%
Alcohol23%16%
Television22%3%
Waste management15%22%
Education services21%-16%
Wireless carriers19%19%
Broadcasting17%-30%
News media17%-57%
Airlines11%3%
Oil and gas-28%7%
Real-estate-2%6%
Utilities2%6%
Health care3%4%
Fashion4%-6%
Cable-12%3%
Finance2%-2%
Professional sports1%-2%
Insurance-12%-14%
Pharmaceutical-18%-14%
Tobacco-44%-27%

The other few immediately noticeable disparities in favorability include:

  • Mining and Oil and Gas, (more Republicans in favor),
  • Entertainment, Education Services, and News Media (more Democrats in favor).

Tellingly, the larger social and political concerns at play are influencing Democrat and Republican opinions about these parts of the economy.

For example Pew Research pointed out Republicans are dissatisfied with universities for a number of reasons: worries about constraints on free speech, campus “culture wars,” and professors bringing their politics into the classroom.

In contrast, Democrats’ criticisms of higher education revolved around tuition costs and the quality of education offered.

On a more recent note, Citadel CEO Ken Griffin, a big Harvard donor, pulled funding after criticizing universities for educating “whiny snowflakes.” In October, donors to the University of Pennsylvania withdrew their support, upset with the university’s response to the October 7th attacks and subsequent war in Gaza.

Meanwhile, the reasons for differences over media favorability are more obvious. Commentators say being “anti-media” is now part of the larger Republican leadership identity, and in turn, is trickling down to their voters. Pew Research also found that Republicans are less likely to trust the news if it comes from a “mainstream” source.

But these are industries that are already adjacent to the larger political sphere. What about the others?

U.S. Politics and the Climate Crisis

The disparity over how the Oil & Gas and Mining industries are viewed is a reflection, again, of American politics and the partisan divide around the climate crisis and whether there’s a noticeable impact from human activity.

Both industries contribute heavily to carbon emissions, and Democrat lawmakers have previously urged the Biden transition to start planning for the end of fossil-fuel reliance.

Meanwhile, former President Trump, for example, has previously called global warming “a hoax” but later reversed course, clarifying that he didn’t know if it was “man-made.”

When removing the climate context, and related environmental degradation, both industries usually pay high wages and produce materials critical to many other parts of the economy, including the strategic metals needed for the energy transition.

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