China’s Hybrid Geoeconomics in South America

the use of dual economic instruments for geopolitical purposes

Abstract

China’s active participation in South America begins with its entry into the WTO in 2001, changing the geopolitical board both in the region and in international relations in general. This rebalancing of power relations, supplanting the once brief unipolarity, allowed it to act more emphatically. Thus, this Chinese expansion is increasingly seen mainly in economic and financial terms. However, it is seen that such a more active participation has been presenting a duality that generates, simultaneously, benefits and harms for the South American economies. This article seeks to discuss this specific characteristic, presenting the hypothesis of the establishment of a Hybrid Geoeconomy, defined as the use of economic instruments through a multifarious and asymmetric dualism. Thus, based on an empiricaldeductive methodology based on quantitative and qualitative data, the objective is to show that, even though the Chinese geoeconomic instruments are a non-imposing strategy, they can result in negative externalities for the South American productive structures and intraregional flows in the long run.