The Beef Boom: China’s Strategic Pivot to Latin America

Frozen beef has surged to become one of the top five imports from Latin America and the Caribbean (LAC) to China in 2023.

This change surpasses refined copper. According to a study by Boston University’s Global Development Policy Centre, this marks a significant milestone in trade dynamics.

China’s appetite for beef has grown exponentially over the past decade. The volume of beef imports from LAC has doubled in the last five years.

It has quintupled over the past ten years. In 2023 alone, China imported 2.084 million tonnes of frozen beef from LAC.

Brazil is the largest supplier, followed by Argentina and Uruguay. This surge has positioned the region as the source of more than three-quarters of China’s beef imports.

Driving Factors Behind the Shift

Several factors have contributed to this shift. The decline in the price of refined copper has played a role. Traditionally, copper is a major export to China.

Additionally, challenges in copper production in Chile have impacted supply. Chile is the world’s largest copper producer.

Tougher mining conditions and water shortages have affected production. Although copper output has recently rebounded, the focus on beef imports remains strong.

Numerous trade agreements between China and LAC countries have facilitated the increase in beef imports.

However, this growth has raised environmental concerns. Deforestation linked to agricultural expansion is a significant issue.

The Boston University study highlights the need for significant collaboration to manage these environmental and social risks effectively.

Broader Trade Relations

China’s trade with LAC is not limited to beef. The region also supplies other commodities, including soybeans, lithium carbonate, and copper ores.

In 2023, China imported 62 million tonnes of soybeans from LAC. Brazil is the primary supplier.

Lithium is essential for lithium-ion batteries. Chinese imports of lithium carbonate from LAC have quintupled between 2020 and 2023.

LatAm and China: A Maturing Relationship Rather Than a Weakening One

Chinese investment in LAC has been substantial. Notable investments include Chengxin Lithium Group’s $823 million in Argentina’s SDSA lithium project.

BYD has invested $290 million in a lithium cathode factory in Chile. Minerals and Metals Group has expanded the Las Bambas copper mine in Peru with $350 million.

Additionally, Chinese development finance institutions committed $1.3 billion in new loans in 2023. Brazil is the primary recipient.

China’s growing imports of beef from LAC underscore evolving trade and economic relationships.

These developments present opportunities for economic growth. However, they necessitate careful management of environmental and social impacts to ensure sustainable development.

The Beef Boom: China’s Strategic Pivot to Latin America