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What China's Economic Slowdown Means for Latin America

Apr 23, 2014 | 09:34 GMT

What China's Economic Slowdown Means for Latin America
Venezuelan Foreign Minister Elias Jaua (R) and his Chinese counterpart, Wang Yi, at the Venezuelan Foreign Ministry on April 21.

(JUAN BARRETO/AFP/Getty Images)

Summary

A looming slowdown in the Chinese economy promises trouble for China's economic partners in Latin America, especially commodity exporters. The growing relationship between China and Latin America is on display this week as Chinese Foreign Minister Wang Yi tours the region in a trip that will wrap up April 26. Wang is visiting Cuba, Venezuela, Brazil and Argentina to discuss bilateral financing and trade deals.

China's slowing economy and potential for domestic economic instability threatens to sharply lower demand for key commodities exported by Latin American countries. Particularly vulnerable are countries such as Brazil, Peru and Chile that have seen China rise in importance as an export destination.

Brazil, Peru and Chile would be particularly affected by China's slowing growth....

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