China still an engine for Latin American growth

Chinese Premier Li Keqiang is on a four-nation visit to Latin America, which has benefited from its growing relationship with China. In particular, the four countries on Li's itinerary - Brazil, Colombia, Peru and Chile - have enjoyed the benefits of their deepening ties with China. For example, in 1993 Peru's exports to China were worth only $140 million. The figure jumped to $676 million in 2003 and $7.8 billion in 2012, because of the strong demand of China for primary goods - minerals, oil and agriculture products - and the increase in their prices.

The Chinese economy on average grew at 10 percent a year in the decade up to 2011. But that pace has slowed down to about 7 percent a year, and Latin America has been feeling its impact. Peru's economy, for instance, grew on average 6 percent a year over the past decade. But last year its growth slowed down to 3 percent, partly because its exports to China fell to $6.9 billion.

The demand for and prices of minerals have dropped because the Chinese economy is entering a "new normal" of lower but more sustainable economic growth.