Development and engagement in South America’s resource sector: Is China replicating the African experience?

China‟s engagement in South America, while not yet capturing as much attention as its venture into Africa, has significantly expanded in the last five years. Abundant macroeconomic and geopolitical analyses do not help to explain the ways in which Chinese-invested extractive operations transform developmental dynamics at national and local levels. While high expectations have been created on the positive ways in which China‟s growth could affect South American resource-rich economies, China‟s African experience as portrayed in Western media has raised suspicions in the region. Whereas China‟s non-intervention discourse is appealing to some leaders of the new Latin American left, who portray China as a non-imperialist alternative to Western powers, it has also been highly criticized as irresponsible and supportive of ruthless elites in so-called pariah regimes. How comparable are the African and the South American cases? What are the developmental outcomes that emerge from Chinese state-owned companies‟ engagement in South America‟s extractive sector? China‟s growth and investment have strengthened the position of resource-endowed countries in the international economy, revitalizing resource industries and improving terms of trade for commodities. Divergences between the African and South American cases are best observed at the national levels, where China‟s non-interventionist approach has different developmental implications depending on the ongoing internal trends of host countries. Reasons that explain the differences between South America and Africa‟s assimilation of Chinese investment can be sought in i) South America‟s relatively stable democratic political environment, ii) South America‟s strong civil society, iii) the role of states in leading development in South America