China’s financing in Latin America: characteristics, institutions and debates (2005-2023)

Abstract

After the 2008 financial crisis, credit from Chinese state banks to Latin American states increased rapidly. Academic literature has addressed the characteristics of these financial flows and the credit logic of Chinese capital, highlighting the long-term horizon of the Chinese financing model; furthermore, the opportunities and risks involved have been identified. The objective of this paper is to analyze this financing model focused on external debt. First, a characterization of the financial flows from China to Latin America is presented.