Por Li Jiarui
BEIJING, Oct. 6 (Xinhua) — China’s high-quality development, expressed by the Asian country as an outstanding task in its modernization process, has benefited and provided new opportunities to Latin American companies that do business with the world’s second largest economy. , agreed several business leaders interviewed by Xinhua.
According to representatives of chambers of commerce and companies in the region consulted, the transition of the Chinese economy towards high-quality development implies, among other positive factors, an offer of high added value products at reasonable prices and exchanges of technology and production models. business.
IMPORTANT COOPERATION
Last July, the International Monetary Fund (IMF) published an update of its World Economic Outlook, with an estimated growth of 5 percent for the Chinese economy in 2024, indicating that the Asian country continues to be one of the main economic drivers of the world.
Likewise, World Bank data show that China’s contribution to global economic growth reached an average of 38.6 percent between 2013 and 2021, exceeding the total sum of the Group of Seven (G7) countries.
The president of the Chilean-Chinese Chamber of Commerce, Industry and Tourism (CHICIT), Juan Esteban Musalem, commented that the Chinese economy plays a fundamental role for most countries in the world and “especially in the Latin American region.”
“Latin America continues to represent a large market and a large source of key resources for China,” he deepened.
According to official statistics, the Asian country has been the region’s second trading partner since 2012, while bilateral trade exceeded $489 billion in 2023.
For her part, Argentine businesswoman Fanny Villamayor believes that the strengthening of country-region relations has opened “a universe of opportunities” for Latin American companies.
She gave the example of the Argentine company Royma, which she directs, which has managed to successfully introduce various products from small and medium-sized Argentine companies into the Chinese market.
“This is how we are known as exporters of high-altitude wines. And, over the years, we have been increasing products, such as meat, leather or wool,” he explained.
HIGH QUALITY DEVELOPMENT
The new term “high-quality development” was first raised at the 19th National Congress of the Communist Party of China (CPC) in 2017.
Seven years later, at the Third Plenary Session of the 20th CPC Central Committee, it was stated that high-quality development is a primary task of China for the comprehensive construction of a modern socialist country.
According to the president of CHICIT, the current process that the Chinese economy is experiencing, towards high-quality development, is “highly positive and beneficial.”
This process has been able to “further enhance this consistent commercial exchange, promoting the creation of new ventures, with a greater degree of diversification and added value, as well as intense collaboration in science and technology,” he added.
The president of the Peruvian-Chinese Chamber of Commerce (CAPECHI), José Tam, also said that this is a “very positive” change, because it allows Latin American economies to “acquire high quality products at more competitive prices.”
In recent years, as China’s manufacturing industry has modernized, new energy vehicles, photovoltaic products and lithium batteries, the so-called “new three”, have gained ground in international markets.
As a leading participant in this process, Latin America has become an important destination for Chinese exports of new energy vehicles. Statistics from Chile’s National Automotive Association show that, in 2022, cars made in China accounted for 51.6 percent of all electric vehicle sales in the country.
“Latin American companies are having more and more confidence in the quality of Chinese products,” said Tam.
Villamayor appreciated that, from his company’s point of view, Chinese technological development has facilitated entrepreneurship, simplifying immediate and concentrated access to the market through digital platforms.
According to data from the General Administration of Customs of China, exports and imports carried out through cross-border electronic commerce were close to 1.22 trillion yuan (174 billion dollars) in the first half of 2024, with a year-on-year increase of 10. 5 percent, about 4.4 percentage points more than the growth rate of total trade exchanges in that same period.
Villamayor also praised the efficiency of the Chinese logistics system, from the “hub” (logistics centers) to the collection of products “in less than 24 hours”, all of which provides an extremely high competitive value for a market as demanding as It’s the Chinese.
NEW OPPORTUNITIES
In Musalem’s opinion, the region’s exports to China are still very concentrated, since “around six products represent more than 70 percent of exports.”
Therefore, for the CHICIT spokesperson, high-quality development implies a willingness to deepen the opening of the Chinese market and focus on new emerging industries.
“On a specific and more immediate level, the areas where there is greater potential for cooperation between Latin American and Chinese companies are all those related to the manufacture of electric cars, solar panels, batteries, digitalization, telecommunications, fintech, energy interconnection and intelligence artificial,” Musalem analyzed.
Among the opportunities offered within the framework of high-quality development, Tam considered that the natural trend will be the establishment of joint companies, Chinese with Latin Americans, to enhance their participation and growth within the Chinese market.
“Considering future technological development, there would be great potential for Chinese investments in the technological area, artificial intelligence and infrastructure,” added the president of CAPECHI.
For Villamayor, this cooperation not only produces tangible benefits in both directions, but also constitutes a bridge for the exchange of experiences.
By doing business with the Asian country, Latin American businesswomen like her can “acquire valuable learning in technology and innovative processes” applicable to their business models, she observed.
With the aim of taking advantage of the aforementioned opportunities, Musalem encouraged Latin American companies to place innovation and new technologies at the center of cooperation, remain attentive to supply chains and strengthen the link between natural resources and manufacturing and the services.
Regarding the Chinese side, it expressed that sustained support for financing, training and technological transfer is vital for Latin American countries, whose development and industrialization processes have historically lacked these three factors.
“China’s global initiatives, such as the Belt and Road, effectively point in this latter direction. And that is why many Latin American countries support it in a very determined way,” he concluded.
