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A woman passes a display showing Evergrande’s domestic commercial projects, in Beijing A woman passes by a display showing Evergrande’s domestic commercial projects, in Beijing, China, Dec. 7, 2021 (AP photo by Ng Han Guan).

Latin America’s Economy Now Lives—And Dies—on Chinese Growth

Thursday, Dec. 23, 2021

Late in September, when stock markets around the world went into spasms of anxiety following news that Chinese real estate giant Evergrande might go bankrupt, the shockwaves reached all the way to Latin America, about as far from the Chinese mainland as one can get. In fact, South American markets dropped even more than those in the United States, even though Evergrande has had little, if any, contact with the region. That’s because Latin American economies are not just deeply entwined with China, but are increasingly dependent on its growth to sustain their own.

The drama of Evergrande, with its $300 billion in debt—larger than the economies of 3 out of every 4 countries on Earth—is still far from over. But its struggles point to problems in the Chinese economy that could pose an even greater, longer-term danger to Latin America. ...

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