CHINESE ENGAGEMENT IN LATIN AMERICA AND EUROPE: INSIGHTS FOR ROMANIA

Abstract

This paper examines Chinese commercial, political, and security engagement with Latin America and the Caribbean, comparing it with similar engagement in Europe. It finds evidence that PRC engagement globally is driven by a strategy focused on re-orienting the world to the economic benefit of the PRC, with nonetheless important political, institutional, and security engagement in support of these objectives and the consequences of their pursuit. It finds common elements in China’s pursuit of secure sources of supply, markets and
technology across regions, its use of the PRC government supporting roles, with differences reflecting the governance and political structure of each partner, the economic opportunities available, and the imperatives of geography. It finds that PRC “soft power” over political and business elites in both regions is significant, based more in the expectation of benefit than an alignment of values, and thus can coexist with mistrust of the PRC. It finds that Europe can not only gain insights from examining Chinese engagement in Latin America, but that engagement impacts Europe directly through the roles of its companies as both competitors and partners of European ones in the region, and through intraregional supply chains and the flows of funds through mergers and acquisitions by China of stakes in European companies.