Fashion, apparel, textile, merchandising, garments

1. The Emergence of China: Opportunities and Challenges for Latin America and the Caribbean Coordinators: Robert Devlin, Deputy Manager (INT) Antoni Estevadeordal, Principal Economist (INT) Andrés Rodríguez (RES) Inter-American Development Bank Integration and Regional Programs Department (INT) Research Department (RES)

2. An increasing importance in world trade… Growth of Trade: China vs. World (1970 = 1)

3. Liberalization of China’s Trade Policy Regime MFN Tariff Liberalization (unweighted averages)

4. China as a Market… Top LA Exports to China Thousands US Dollars 2002 Mkt. Share(%) Importer Rank

5. Competing with China in Global Trade

6. A highly diversified export basket Export Concentration Index

7. Comparing Chinese and LAC Export Structure by Technological Content

8. China as a whole is extremely labor abundant…it should compete with the world’s lowest wage countries CHINA LA US LABOR CAPITAL

9. But China’s provinces exhibit substantial endowment heterogeneity…Shanghai may compete with some OECD countries! LA US LABOR CAPITAL Shanghai CHINA Guizhou

10. Market Share in the US (Manufacturing)

11. Product Penetration in the US Market (Manufacturing)… Number of Products in the Manufacturing Sector 1972 6,136 goods 2001 13,242 goods

12. Product Penetration in the US Market (Manufacturing)… Number of Products in the Manufacturing Sector 1972 6,136 goods 2001 13,242 goods

13. Product Penetration in the US Market (Manufacturing)… Number of Products in the Manufacturing Sector 1972 6,136 goods 2001 13,242 goods

14. Head-to-Head Product Competition with China in the US Market… Export Similarity Index

15. Head-to-Head Product Competition with China in the US Market… Export Similarity Index

16. FDI Competition?

21. FDI sector coincidence varies greatly across countries

28. Conclusions

32. Coping with Chinese Competition

37. Strategic National Social Process

40. Horizontal and Vertical Policies

44. Some Policy Areas to Support Industrial and Services Upgrading and Competitiveness