The notion of massive Chinese investments in developing countries and big commodity trade deals caught the imagination of analysts and finance ministries for many years. But while trade between China and Latin America boomed in the early part of the century, some of the promised deals involving direct investment between the two regions never materialised. Many countries in South America are now starting to look elsewhere for partners to help their economies grow.

<i>China was considered a major new force in Latin American economies before the financial crisis of 2009. The combination of demand for commodities from the region together with the promise of Chinese investments i...

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Dr. Joseph S. Tulchin
China offered development loans, made promises of direct investment, and bought strategic commodities at favourable prices in exchange for a shift in the diplomatic allegiance of these nations from Taiwan to China
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