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.
Sources:Millennium Project South Africa Node, March 2010, page 2
Internacional Nacional Foro, February 2010, page 5: