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China’s interdependence with developing countries

China's new found buying power is helping fuel growth in developing countries in Latin America and South Africa.

From Millennium Project South Africa Node:
"Dr Martyn Davies, Head of the China Africa Network at Gordon Institute of Business Science) GIBS… states that China's demand for energy and commodities is underpinning and fueling growth in Sub-Saharan Africa... He calls it a ‘new coupling of growth’ where China's or Africa's growth is dependent on Chinese demand and its supply chains."

From Internacional Nacional Foro:
"According to an ECLAC study, the financial crisis caused a 24% reduction of total Latin American and Caribbean exports, due to a reduction on prices (15%) and volume (9%). The most affected sectors were mining, oil and manufacture. Moreover, total imports decreased by 25%. However, the dynamism of the Chinese economy is a reason for a measure of optimism in the region: South American countries have consistently maintained trade surpluses by exporting primary commodities to China."

Implications from MPSAN:
Dr Davies: ‘As these trade links become more established, what we'll see is that a component of Chinese growth will become dependent on Africa's ability to supply.

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Sources:

Millennium Project South Africa Node, March 2010, page 2
http://newsletters.clearsignals.org/SA-Node_Mar2010#page=3

Internacional Nacional Foro, February 2010, page 5:
http://newsletters.clearsignals.org/FORO_Feb2010.pdf#page=5