China and Latin America

This month’s issue of the Strategic Studies Newsletter, a publication of the Army War College, features an article on China’s moves in Latin America, which is now China’s principal source of supply outside Asia. In 2003 it spent 77% of its non-Asia funds there. (I suspect they spend most of the rest in Canada, where they have invested heavily in the oil fields there.) They’re moving in with joint ventures and direct investments.

As with CNOOC’s potential investment in Unocal this could be a move that bolsters peace, as China is unlikely to jeopardize things when they have so much at stake. But the issue for the US is how to ensure that peace is the result. We need to start considering the issue now.