MercoPress. South Atlantic News Agency

Brazil is China's main regional trade partner

Bilateral trade between China and Brazil totalled 11.3 billion US dollars during the first eleven months of 2004, which represents a 56.2% increase over the same period in 2003, according to the latest figures from Chinese Customs.

Brazil's exports to China surged 49.7% reaching 7.95 billion US dollars while Chinese exports climbed 74.5% to 3.34 billion US dollars, making it Latinamerica main trading partner.

Mexico was China's second trade partner in the region last year, with bilateral trade growing 43.2% to 6.4 billion US dollars. Chinese exports to Mexico totalled 4.46 billion. Bilateral trade between Chile and China reached 4.82 billion, up 52.8% while Chinese-Argentine trade surged 33% percent to 3.85 billion US dollars.

China has been moving aggressively into Latin America where the trade balance is negative for Beijing.

In November 2004, Chinese President Hu Jintao and a delegation of 300 businessmen spent two weeks in Latin America visiting Brazil, Argentina, Chile and Cuba.

The main purpose of the trip was to expand economic and trade ties with Argentina, Brazil and Chile, with which Beijing registered a 7 billion trade deficit in 2003. Besides, China has poured 1.6 billion US dollars in foreign direct investment into Latin America in an effort to strengthen its presence in a region traditionally dominated by the United States. Chinese direct investment in Venezuela alone has risen to 700 million US dollars since 1997 with most of it going into oil exploration and production.

China, which in 2003 became the world's biggest oil consumer behind the US and has achieved annual economic growth rates of over 8% in recent years, is seeking to diversify its suppliers of oil and gas.

During his visit to the region the Chinese president managed to extract from Latinamerican trade and investment partners the clause of China a "market economy", a benefit the World Trade Organization still has to approve.