As China Miracle Fades, Report Says 16 Countries are Waiting in the Wings
As China Miracle Fades, Report Says 16 Countries are Waiting in the Wings
In discussing the ebb of the Chinese assembly business, AS/COA's Eric Farnsworth says there could be "some real potential" for Latin American countries to step in if the region begins to operate in a "unified, integrated whole."
While still small, foreign direct investment in Nicaragua has nearly doubled since 2009, and between 2009 and 2012, foreign direct investment in the Dominican Republic increased by about 67 percent.
Eric Farnsworth, vice president of the Council of the Americas and Americas Society, said he agrees that some of China’s business may ebb away as wages increase and China becomes more of a middle economy, “but not all of China’s business.’’
“The main reason is the sheer capacity of China. When you’re comparing China to Nicaragua, it’s like comparing an elephant to a mouse,’’ he said.
Despite the Central America-Dominican Republic Free Trade Agreement with the United States, he said, that region has not yet begun to operate as a “unified, integrated whole.” But, he said, if the countries in the free trade pact combined with southern Mexico did, in fact, become more economically integrated, “that’s when you could begin to see some real potential’’ in terms of landing assembly business now in China.
