Does the dragon soar higher than the eagle?

Chinese economic penetration of Latin America has profoundly altered the economic and political relationships in the region. This thesis argues that while the growing relationship between China and Brazil has been beneficial for both countries, it is especially beneficial for China. While the Brazilian raw materials and agricultural industries have profited, the influx of finished Chinese products is making many Brazilian industries, especially textiles, uneconomical, and has raised fears that Brazil may contract the "Dutch disease"-reliance on a few industries for export income. However, China has offset the historic political influence of the United States in the region, and holds out the prospect of being a strong sponsor of Brazil's ambitions to become an international political player commensurate with its growing regional economic and political importance. Latin American states are finding various ways to expand lines of communication and to collaborate with the Chinese, who are clearly set to play a major role in aid-giving worldwide. We must better understand our future competitor in order to develop our own strategy for engagement in Latin America.http://archive.org/details/doesdragonsoarhi109455483Approved for public release; distribution is unlimited