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The Involvement of the People's Republic of China in Latin America The Involvement of the People’s Republic of China in Latin America Through Economic and Security Lenses. The Case of Argentina, Brazil, Ecuador and Venezuela Senior Thesis By Sandra Mishell Armas Navarrete Submitted in Partial fulfillment Of the Requirements for the degree of Bachelor of Arts In International and Economic Relations State University of New York Empire State College 2021 Reader: Max Hilaire Statutory Declaration / Čestné prohlášení I, Sandra Mishell Armas Navarrete, declare that the paper entitled: The Involvement of the People’s Republic of China in Latin America Through Economic and Security Lenses. The Case of Argentina, Brazil, Ecuador and Venezuela was written by myself independently, using the sources and information listed in the list of references. I am aware that my work will be published in accordance with § 47b of Act No. 111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the valid publication guidelines for university graduate theses. Prohlašuji, že jsem tuto práci vypracovala samostatně s použitím uvedené literatury a zdrojů informací. Jsem vědoma, že moje práce bude zveřejněna v souladu s § 47b zákona č. 111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou Směrnicí o zveřejňování vysokoškolských závěrečných prací. In Prague, 27.04.2021 Sandra Mishell Armas Navarrete ii Acknowledgements I hereby wish to thank the people who have taken part on this journey. Foremost, I wish to express my deep sense of gratitude to my family, my mother Sandra, my father Carlos and my brother Carlos Antonio who have always motivated me to move forward and have guided me with the wisest advice. It is to them that I owe the completion of this work. Moreover, I wish to thank Tobias, who has become a part of my family. Thanks for believing in me. Also, I wish to express my gratitude and admiration for Professor Max Hilaire for his valuable criticism and expertise that have enriched my work and pushed me to see beyond the ordinary. Likewise, I wish to thank professor Óscar Hidalgo-Redondo who has infused me with his passion for this discipline and has motivated me to pursue my dreams. Finally, my work is a reflection of an awaken and united Latin America that seeks to reflect its human greatness and economic potential in international relations. With this work I wish to thank the many people who have contributed to this goal. iii Abstract Parallel with China’s development over the last half-century, its presence in all other continents is becoming increasingly more substantial and obvious. One of the regions which got to experience China’s rapidly growing influence is Latin America. Economically, Sino- Latin American trade has transformed from virtually non-existent just a few decades ago, into a considerable competitor to the commercial and political domination exerted over the region by the United States. The important bilateral partnerships built within the financial and trade spheres, continue to influence the development in the region in key areas such as infrastructure and management of natural resources. Likewise, security and military contacts are swelling as a result of opportunities and challenges derived from economic interaction. This thesis will assess the influence that the People’s Republic of China exerts over its top four Latin American economic partners – Argentina, Brazil, Ecuador and Venezuela – from an economic and security perspective. For the Chinese regime, Latin America is perceived as a key target for the Belt and Road Initiative and will continue being one of the interest areas of Chinese foreign policy with the ambition to assist its pursuit of becoming a global leader. This study claims that China is a revisionist power attempting to challenge and reorganize the ongoing international order and secure leadership in the global geopolitical hierarchy. Furthermore, we observe that the contemporary alliance between China and these Latin American countries serves Chinese power ambitions as well as Latin American interests, yet it possesses structural challenges which can often negatively impact the countries’ development. Nevertheless, the Sino-Latin American partnership is very likely to expand over the next decades and, if handled and manufactured properly, can bring a positive impact to the four studied countries which can benefit from diversifying its commercial and diplomatic partners. Keywords: China, Latin America, Argentina, Brazil, Ecuador, Venezuela, Belt and Road Initiative, security cooperation, natural resources, surveillance technology, Digital Silk Road. iv Table of Contents Introduction........................................................................................................................... 1 Methodology .......................................................................................................................... 3 Chapter I: “Early Chinese Footprint in Latin America” ................................................. 4 Chapter II: “The Chinese Dream — of Power and Wealth”.......................................... 14 Chapter III: “Sino-Latin American Relations: Economic Involvement and Governance” ........................................................................................................................ 28 Argentina ........................................................................................................................... 30 Brazil ................................................................................................................................. 35 Ecuador ............................................................................................................................. 38 Venezuela .......................................................................................................................... 44 Chapter IV: “Beyond Economics: Military and Security Cooperation”....................... 48 Military engagement ......................................................................................................... 49 Surveillance technology transfer....................................................................................... 57 Chapter V: “Analysis”........................................................................................................ 61 China’s Ambitions in the Region: Looking at China Through Realist Lenses ................. 61 Emerging Challenges ........................................................................................................ 70 Economic Perspective ................................................................................................... 70 Social and Environmental Perspective .......................................................................... 75 Political Perspective ...................................................................................................... 79 Military and Security Perspective ................................................................................. 83 Chapter VI: “Conclusion” ................................................................................................. 87 Bibliography ........................................................................................................................ 92 v Introduction In 2019, China has become the world’s largest economy and, with a GDP of USD 23 trillion, surpassed even the United States. This success highlights the resilience of a country which, only 30 years ago, resided ten ranks lower in the global GDP comparison, behind countries like Spain and Italy. Parallel with China’s development over the last half-century, its presence in all other continents is becoming increasingly substantial and obvious. One of the regions which got to experience China’s rapidly growing influence is Latin America. Economically, Sino-Latin American trade has transformed from virtually non-existent just a few decades ago, into a considerable competitor to the commercial and political domination exerted over the region by the United States. The important bilateral partnerships built within the financial and trade spheres, continue to influence the development in the region in key areas such as infrastructure and management of natural resources. Likewise, security and military contacts are swelling as a result of opportunities and challenges derived from economic interaction. This thesis will assess the influence that the People’s Republic of China exerts over its top four Latin American economic partners – Argentina, Brazil, Ecuador, and Venezuela – from an economic and security perspective. Currently, 90% of the overall loans provided by China to Latin America flow to the economies of the four above-mentioned countries. During and due to the Covid-19 pandemic, China’s financial presence in the region has become even more essential for countries struck by the economic crisis, while the current instability of the region places the world’s largest bilateral lender in a position of uncertainty. For the Chinese regime, Latin America is perceived as a key target for the Belt and Road Initiative and will continue being one of the interest areas of Chinese foreign policy with the ambition to assist its pursuit of becoming a global leader. Hence, it is crucial to research the ongoing 1 partnerships and understand the motivations, and the gains and losses for both sides. This work will assess the questions What are Beijing’s objectives/intentions towards the analyzed countries? and What are the
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