More protectionist economies in the region have suffered an erosion in their industrial base. Argentina and Brazil experienced greater commodity-led growth since the commodity super-cycle of 2007-10, the effects of which ended recently.
The advanced economies of the world can benefit from Chinese industrial expansion, because their large capital stocks, access to investment, and educated populations allow them to diversify into more sophisticated products. At the same time, low-value-added industrial commodity production happens somewhere else, mainly in China.
On the other hand, Latin American countries cannot easily venture into sectors that are more knowledge-intensive; hence China has become both their...