An Analysis On China’s Export Trade Potential To Main Countries In Latin America

Latin America has a vast territory and a large population of consumers,including 33 countries and regions.It has rich natural resources and a vast consumer market.In recent years,the integration construction of Latin America has been constantly improved,its overall strength and international influence have been increasing,and its position in the global economy has been rising.After more than 40 years of reform and opening up,China’s economic strength and international status have also been significantly enhanced,and now it has become the second largest economy in the world.With the rapid economic development of China and Latin America,the diplomatic and economic relations between China and Latin America has been closer and closer.After entering the 21 st century,with the deepening development of economic globalization,the economic and trade relations between China and Latin America have undergone profound changes.However,despite the deepening of the economic and trade relations and the rising volume of bilateral trade between China and Latin America,there are still many problems in the economic and trade relations between China and Latin America,such as the unreasonable trade structure,the great impact of trade frictions and the greater external impact.Since 2015,the Sino-Latin American trade volume has declined.Under this situation,it is of great significance for China to study the current situation and problems of Sino-Latin American trade,correctly understand the space for economic and trade development with Latin American countries,promote the steady progress of Sino-Latin American trade relations and reduce trade frictions.By using the methods of literature research,comparative analysis,qualitative analysis and quantitative analysis,this paper reveals the scale and structure of China’s export trade flows in Latin America on the basis of investigating the development and changes of China’s export trade to Latin America.Using the index analysis and trade model,this paper analyses the factors affecting China’s exports to Latin America,builds a gravitational trade model of China’s exports to the world,and analyses the potential of China’s export trade to major Latin American countries.Through empirical analysis,this paper argues that China’s exports to Latin America are influenced by the economic level of importing and exporting countries,the gap of per capita GDP in importing and exporting countries,the geographical distance between importing and exporting countries,trade openness of importing countries and the degree of freedom of trade between the two sides.The calculation results of trade potential show that China’s export trade with Latin American countries has developed well and stays at the potential exploiting stage,indicating that bilateral trade still has room to expand,but the space is limited,and new factors need to be developed to expand trade.While at present,China and Latin American countries have great potential in the export of industrial manufactured goods.According to the conclusion of the study,the paper finally puts forward some countermeasures and suggestions to expand the Sino Latin American exporting trade,including extending “Belt & Road Initiative” to Latin America,actively promoting the process of Sino-Latin American trade liberalization,optimizing the commodity structure,further exploiting export trade potential,making effective use of various platforms,actively preventing and effectively coping with "national risks" and making great efforts to overcome the "China Paradox" prevalent in major countries of Latin American to expand the exporting trade volume from China to Latin America.