The Report On Economic and Trade Cooperation Between China and LAC (2019) Launch
On 19th December, the Economic Division of ILAS released the new book "The Report On Economic and Trade Cooperation Between China and LAC(2019)", in which the first Sino-Latin American Economic and Trade Cooperation Index was launched in China. This conference attracted colleagues from Tsinghua University, Institute of Modern International Relations, China Academy of International Studies, China-LAC Cooperation Fund, Xinhua News Agency and other institutions. Prof. Yue Yunxia hosted the meeting.
With the deepening of globalization, the economic and trade cooperation between China and LAC has achieved unprecedented development. President Xi Jinping has pointed out: "Latin America is a natural extension of the 21st Century Maritime Silk Road, is an indispensable and important participant in the construction of 'Belt and Road'." Scientifically appraising the LAC business environment, and the process of China-LAC cooperation, then providing advice for China's new round of opening up is the main purpose of this report.
To evaluate the business environment of LAC and China-LAC bilateral cooperation progress, we build LAC business environment index and China-LAC bilateral cooperation index. In terms of the Latin American business environment index, we choose data on eight aspects: political environment, macroeconomic environment, social environment, trade environment, investment and financing environment, infrastructure environment, innovation capability and resource endowment. The indicators are composed of eight main factors to measure the development of the business environment in LAC . In terms of the China-LAC bilateral cooperation index, the data on political cooperation, “Belt and Road” and bilateral cooperation, trade cooperation, financial cooperation, investment cooperation and cultural exchange were selected to quantify the cooperation between China-LAC.
Based on quantitative analysis, we get four conclusions: firstly, the overall performance of the business environment and bilateral cooperation in Brazil, Mexico, Chile, and Argentina are significantly better than other countries. Secondly, the linear relationship between the level of China-LAC bilateral cooperation and LAC business environment is more obvious than five years ago, so they are mutually dependent and reinforcing. Thirdly, in terms of business environment or bilateral cooperation evaluation, countries in LAC have gradually widen the gap between each other. Fourthly, although the growth rate of most countries' bilateral cooperation index is greater than the business environment, the overall business environment improvement effect is greater than bilateral cooperation, and bilateral cooperation still needs to deepen.
In conclusion，in the China-LAC cooperation, we should pay attention to the following aspects: Firstly, for the countries that business environment leaves behind the level of bilateral cooperation, risk management should be done. In 2018, the bilateral cooperation level between China and Venezuela is located at 6 in LAC, but the overall business environment in Venezuela is at the bottom in LAC, the business environment and cooperation level show a large degree of mismatch. Under this circumstance, risk assessment and control should be done. Secondly, for countries that the business environment is significantly better than cooperation level, we should make deep investigation and continuous tracking, scientifically assess the potential and risks of cooperation, and incorporate such countries into the future national framework of China-LAC cooperation. In our study, countries with such phenomena are mainly Caribbean countries such as Antigua and Barbuda and the Bahamas. Thirdly, for countries that are currently leaving behind the level of bilateral cooperation and the development of the business environment, we should tak advantage of the business environment module and explore the possibility of cooperation between China and such countries. For example, political environment in Belize is comparatively in the top in LAC, but other areas are relatively backward. We can begin cooperate in the political field by promoting bilateral cooperation, and finally improve the business environment.