Abstract: Over the past decade, outward foreign direct investment (OFDI) from both China and Latin American countries has developed rapidly, gradually emerging as new forces in the global OFDI landscape among developing countries and regions. While both China and Latin American countries belong to the developing world, their foundations and approaches to opening up and development differ, as do their historical trajectories of OFDI and the sources of their enterprises' capabilities. This article analyzes the similarities and differences between China and Latin America in terms of trends, sectoral distribution, geographic preferences, and the nature of investing enterprises. By comparing the developmental stages of their OFDI, it explains the various differences in their OFDI characteristics and explores the underlying reasons for these distinctions. Due to differing models of reform and opening-up, China's OFDI development has shown continuity, whereas Latin American countries have experienced greater volatility. After the global financial crisis, both China and Latin America have seized opportunities for rapid growth in OFDI. In terms of OFDI capabilities, China relies predominantly on large state-owned enterprises, with investments spanning energy, mining, and a wide range of manufacturing sectors. In contrast, Latin American countries are represented mainly by well-established non-state-owned enterprises, focusing on resource-based industries and resource-intensive manufacturing.

Authors: Chen Taotao, Chen Chen, Rhys Casanova

Published in: Latin American Studies, 2016, 38(4): 94-110