China: 5 Latin American countries that sell the most to an Asian company (and what sets Mexico apart from the rest)

Asia's largest bilateral trade with Latin America and the Caribbean (LAC) was about US$14 billion in 2000, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

Thus, the increase has been exponential in almost a quarter of a century.

“During the period 2000-2022, trade in goods between the region and China multiplied by 35.The region's total trade with the world is multiplied by only 4,” says ECLAC in its International Trade Outlook 2023 report.

Thanks to this increase, China has overtaken the EU to become the second largest trading partner in LAC overall and the main partner in South America.

This intensity of trade relations with Beijing has been uneven, resulting in some countries in the region enjoying trade surpluses. Others record a deficit.

But which Latin American countries export the most to China, and what do they sell?

According to ECLAC, The majority of Latin American exports to China are concentrated in six products (soybeans, copper and iron ores, oil, copper cathodes and beef) add up to 72% of the total.

On the other hand, the region's imports from China consist mainly of manufactured goods, which has “expanded access to households and firms, but also displaced regional production,” says ECLAC.

These are the five Latin American countries that are the top exporters to the Asian company for 2023, according to statistics from the Chinese Customs Administration.

Brazil is China's main trading partner in Latin America.

In 2023, bilateral exchange totaled USD 181,000 million, of which USD 122,000 million was exported from the South American country. It had a trade surplus of USD 63 billion.

The results make Brazil not only the top Latin American exporter to China, but also “one of the few countries in the world with a trade surplus with China,” international consultancy Dezan Shira & Associates reported in April. 2023. China briefing on his release.

Also, the link is likely to continue to grow based on the 15 bilateral trade agreements worth around USD 10 billion signed by the two countries during the official visit of Brazilian President Lula da Silva in April 2023. .

What does Brazil sell to China?

The main commodities exported to China are soybeans (35.4%), iron (20.2%), oil (18.6%), frozen beef (8.82%) and cellulose pulp (3.36%), according to data from the Laboratory of Economic Complexity (OEC, its acronym in English).

Chile is the second largest Latin American exporter to China and ranks second on the list of countries with the largest trade surplus.

By 2023, Chilean exports to China are expected to exceed US$43 billion Its surplus with China was USD 23 billionAccording to data from the Customs Administration of the People's Republic of China.

The Asian giant is Chile's main trading partner.

According to OEC data, Chile's main export product to China is copper (raw and refined).

Another remarkable product Pit fruits, of which Chile is the world's major exporter and China the largest importer. In 2022, Chile's exports of this type of fruit to China reached US$2.45 billion, accounting for more than two-thirds of Chinese imports of US$3.58 billion.

Figures for Chilean exports of inorganic chemicals, precious metal alloys and isotopes are also significant.

In 2005, Chile was the first Latin American country to sign a free trade agreement with China, according to researcher Evan Ellis, which owes its good results to its marketing strategy.

“Part of Chile's success was the promotion of its “national brand” in the People's Republic of China. Chile has successfully marketed its grapes, cherries and blueberries in China as “luxury goods”, associated with Christmas festivities and gift-giving, allowing them to be sold at higher prices, including importing and shipping them by air and expensive routes. refrigerated containers,” Ellis noted in an article published in December 2023.

With exports to exceed US$25 billion in 2023, Peru ranks third among Latin American countries as a top seller to China and achieves the largest trade surplus (over US$13 billion according to AGA data).

Starting in 2009, when the two countries signed a free trade agreement, the Asian power became Peru's main trading partner.

Between 2010 and 2023, Peru's exports to China quadrupled. And, according to a recent analysis by the Andres Bello Foundation – China Latin American Research Center.

Peru's main exports to China are minerals and animal feed.

Although Peru sells a wide range of minerals to China, including iron, zinc and precious metals, the majority of these exports are copper, accounting for more than 60% of the total in 2019.

Of the five Latin American countries that export the most to China, Mexico is a big exception because its trade balance with the Asian giant is unfavorable.

By 2023, the North American country's exports to China were more than $18 billion, but its imports exceeded $81 billion. The result? A US$62 billion trade deficit with Mexico.

Mexico's trade relationship with China is also different, as manufactured goods are one of its best-selling products. Not just raw materials.

For example, in February 2024, the main Mexican exports to Asian companies were integrated circuits (US$232 million), medical equipment (US$150 million), precious metals (US$91 million), copper (US$73 million), according to OEC statistics, machinery for vehicles, parts and Parts (US$71 million) etc.

Over the years, the relationship between Mexico and China has been complicated because, due to their export profile, the two countries have been rivals, especially since China joined the World Trade Organization. This competition is very significant, especially in supplying manufactured goods to the US market.

According to Liu Xuedong, a professor at the Faculty of Economics at the National Autonomous University of Mexico, the links between these economies are increasingly interdependent.

This is partly explained by the fact that China plays a key role in the supply chain that allows Mexico to produce many of its exports to the United States.

“In this context, the trade flows in question are not only bilateral between China and Mexico, and between Mexico and the United States, but also trilateral China-Mexico-US trade flows connecting the three countries of Mexico. “Springboard and Assembly Platform” The product's growing presence in the North American market,” the academic wrote in a recent article published by digital magazine ThinkChina.

With exports of more than 7.9 billion in 2024, Ecuador is the fifth country in Latin America that exports the most to China, with a trade surplus of more than 1.9 billion US dollars.

The two countries signed a free trade agreement in May 2023, which is estimated to help Ecuador increase its exports by 30% in the first three years of its implementation.

China is already a major buyer of Ecuador's non-oil products.

According to OEC data, the top Ecuadorian products exported to China include crustaceans, copper ore and precious metal ores.

Among other notable products – and expected to benefit from the trade agreement – ​​are bananas, whose sales are expected to double, and cocoa.

The Chinese market has become one of the most lucrative for cocoa sales Thanks to the fact that consumers are willing to pay more to get a premium quality product, explained Francisco Miranda, president of the National Association of Cocoa Exporters of Ecuador, when the trade agreement was signed.