**The Economic Work Conference emphasized that "it is necessary to accelerate the cultivation of new momentum for foreign trade". As one of the "troikas" that drive economic growth, it is an important force for China's economic rebound and an important link with the global industrial chain. Looking forward to 2024, the complexity, severity and uncertainty of the external environment will rise, and the cultivation of new drivers of foreign trade needs to take multiple measures at the same time, focusing on new markets and forming new increments.
Latin America covers 33 countries and regions, with a total population of more than 6500 million, with a per capita GDP of nearly $10,000. In recent years, the region has accounted for an increasing proportion of China's foreign trade. In 2023, the amount of bilateral relations between China and Latin America will reach 342 trillion yuan, of which China's exports to Latin America are 171 trillion yuan, a year-on-year increase of 3%, much higher than the average growth rate of national exports; Compared with 2018, the proportion of Latin America in the total increased by 16 percentage points. In particular, the region's post-pandemic economic recovery and the acceleration of industrialization in Latin American countries as a whole have boosted import demand. Therefore, China's foreign trade has great potential to open up the market in Latin America.
At present, China has established first-class ties with 33 countries in Latin America, especially with Chile, Ecuador and other countries have signed free trade agreements, and economic and trade relations are getting closer and closer. From the perspective of countries, the top five Latin American countries with China's bilateral scale are Brazil, Mexico, Chile, Peru and Colombia, with a total import and export volume accounting for 827%。Among the exporting countries, Mexico ranks first, accounting for 33% of China's total exports to Latin America5%, followed by Brazil with 243% and 8% in Chile. Brazil accounts for 50 of the importing countries5%, followed by Chile with 177%, Peru 105%。From the product point of view, the bilateral ** shows strong complementarity, China mainly exports mechanical and electrical products, vehicles, rubber products and other related products to Latin America, such as machines, semiconductor devices, monitors and projectors, manned motor vehicles, tires, etc., the export products are rich, according to the customs HS 4-digit code statistics, covering more than 1,000 items, accounting for more than 90%. China's imports from Latin American countries are mainly raw materials, such as soybeans, copper, iron ore, petroleum and other agricultural products and mineral products.
On the macro level, from the perspective of the development of different countries and China's advantages, Latin American countries can be roughly divided into four major types: first, comprehensive countries represented by Brazil, Mexico, Chile, etc., with large amounts and rich products; Second, the single type of country represented by Peru, Colombia, Ecuador, etc., whose certain types of products and China's first value are much higher than other products, such as Peruvian mineral products will account for 85% of China's exports in 2023; Third, potential countries represented by Panama, Guatemala, Bolivia, etc., have grown rapidly in recent years; Fourth, the development countries represented by Nicaragua and Haiti are smaller in size than China, and need to be continuously excavated and improved. In the next step, comprehensive and potential countries should be fully cultivated; Single-type countries should take key products as the starting point; Development-oriented countries should identify new opportunities and find new breakthrough points.
At the same time, in the micro field of some products, China has a lot to do with Latin American countries. For example, under the trend of industrialization, the demand for industrial products in Latin America has shown a significant growth trend, with Peru's imports of chemical products increasing by 17% year-on-year in 2022 and Argentina's imports of vehicles and parts increasing by 23% year-on-year. Semiconductor devices, motor vehicle parts and other products have shown a strong driving role in China's exports to Latin American countries, and there is still a lot of room for expansion in chemical products and mechanical and electrical equipment. In addition, a new "blue ocean" has also emerged in the field of cross-border e-commerce. In recent years, Latin American e-commerce has grown significantly, and Chinese products have been widely welcomed by local consumers. Latin America's overall e-commerce ecosystem, such as network penetration, payment system, and logistics system, is also constantly improving, providing guarantee for the development of cross-border e-commerce.
Facing the future, in the context of the complex and changeable world economic situation and the accelerated restructuring of the global industrial chain, the industrial complementarity between China and emerging markets such as Latin America will be more prominent, and China's foreign trade market will be more diversified. It is necessary to further understand and demarcate the important position of the Latin American market in China's foreign territory, and continue to deepen and expand the cooperation between the two sides; According to the development status of different countries, open up new areas of cooperation and cultivate new growth points.
First of all, do a good job of market tracking research. In-depth understanding of the Latin American market, accurate docking of potential demand, relying on superior products and advantageous fields, in the chemical, mechanical and electrical equipment and other fields to expand export space. Focus on new business formats and promote the sustained and rapid development of new business formats such as cross-border e-commerce, market procurement, and overseas warehouses. On the domestic side, the use of online tax payment and other facilitation means to reduce operating costs; On the overseas side, it helps cross-border e-commerce platform companies to tap the potential of the Latin American market and cooperate with local e-commerce enterprises. Strengthen compliance management, promote the high-quality development of cross-border e-commerce, and allow more marketable products to enter the Latin American market through online channels.
Second, it is necessary to build a cooperation mechanism. On the one hand, make good use of the existing platform. We will use the free trade agreements with relevant Latin American countries to fully release institutional dividends such as tariff reductions and exemptions, so that enterprises on both sides can benefit from reciprocity**. We will hold major economic and trade activities such as the CIIE, the Canton Fair, and the CIFTIS with high standards, and invite Latin American businessmen to participate in the fair to continuously strengthen the ties between the two sides. On the other hand, we will support enterprises to take the initiative to go out, use overseas exhibitions and other activities to support enterprises to expand their foreign trade business in an all-round way, appropriately encrypt dialogue and exchange activities with Latin America, and encourage enterprises to integrate into the Latin American market through multiple channels.
Finally, we must do a good job in service guarantee. Improve the service mechanism of foreign trade enterprises and help enterprises build sales channels. Strengthen the guarantee of talents, reserve and improve the professional team of overseas talents, pay attention to cultivating comprehensive talents who are familiar with the language, system, law and other aspects of Latin America, and strengthen the confidence of enterprises to explore the Latin American market. Provide information resources for enterprises to understand the Latin American market, effectively use financial, legal and other resources to avoid transaction risks.
Author's Affiliation:Shandong Provincial Institute of Commerce Development).
*: China ** News Author: Liang Danni, Li Lin, Liu Zhi.