China’s rise in Latin America & the Global Race for Critical Raw Materials

China and the European Union (EU) are both vying for closer relations with Latin American countries in the context of their respective strategic autonomy policies and the US’s protectionist turn. China’s role in the region has grown rapidly and sees new growth drivers over the last year in burgeoning Chinese investment (esp. in Brazil) and record imports of agricultural products (such as soybeans). Beijing has sought closer diplomatic connections including through the BRICS group and the China-CELAC (Community of Latin American and Caribbean States) Forum, as well as a series of bilateral strategic partnerships. China’s dominance of global rare earth and critical raw material industries is bolstered through its companies’ pertinent positions in Latin America. At the same time, the EU is completing the process of updating trade agreements with Chile and other Andean countries, as well as Mexico, and seeking to ratify a further agreement with the Mercosur Group (Brazil, Argentina, Uruguay, Paraguay). Europe seeks to build on traditional strengths as a source for investment in Latin America and export revenues for the region. Brussels has assigned Latin America a central role in diversifying European external economic relations, and particularly the reduction of vulnerabilities and dependencies in critical raw material imports. This discussion addressed the sources of China’s success in Latin America, and its policy goals in the region, with a particular focus on critical raw materials. It delved into the difference in Chinese and EU approaches, as well as whether and why Latin American governments perceive them as attractive partners. Speakers further discussed whether and how the EU should change its approach to Latin American countries in general, and its policies related to critical raw materials in particular. Discussants: Ruben Gonzalez Vicente Associate Professor in Political Economy at the University of Birmingham (Department of Political Science and International Studies); Editor for Global China Pulse and People’s Map of Global China; research focus on China, Latin America, and the Caribbean Karin Küblböck Senior Researcher at the Austrian Foundation for Development Research / Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE); research focus on natural resource policies, international trade and investment policies Moderator: Thomas Eder Research Fellow at the Austrian Institute for International Affairs (oiip) In cooperation with the Ministry of Defence bmlv.