The Rise of China in the Capitalist World-System and Its Impact on South American Political Economy

Abstract

This article draws on World-Systems Analysis in order to give an assessment of the impact of China’s rise in South America. It is argued that China’s rise has led to important structural changes in South American capitalism. First, China tends to replace the US as the “consumer of last resort” in the world economy. Its high demand for primary goods led to a commodity boom in South America and a reprimarization of exports. Second, China is heavily investing in infrastructure and commodity supply chains, thereby also transforming South American economies. And, third, China has become a major creditor of several South American governments, thus, challenging us-dominated international financial institutions. It is argued that under increasing Chinese influence a new extractivist mode of Landnahme has developed in South America.