In the eyes of many, China's unprecedented economic rise has brought
nothing but good news to the countries of Latin America and the
Caribbean. Indeed, China's growing appetite for primary products, and
the ability of Latin America to supply that demand, has played a role in
restoring growth in Latin America, both in the run-up to the global
financial crisis and in its aftermath.
The dragon in the room that few are talking about is the fact that China
is simultaneously out-competing Latin American manufacturers in world
markets--so much so that it may threaten the ability of the region to
generate long-term economic growth. One of the authors' key claims is
that China is rapidly building the technological capabilities necessary
for industrial development, whereas Latin American tech innovation and
sophistication lags considerably. At a deeper level, the findings in
this volume imply that China's road to globalization, one that
emphasizes gradualism and coordinated macro-economic and industrial
policies, is far superior to the "Washington Consensus" route taken by
most Latin American nations, particularly Mexico.