China: a strong hand.

The Latin American economic boom has a lot to do with China's own growth story. The Asian powerhouse, not surprisingly, is looking for ways to increase its links with the region. Latin America expects direct investment from China to support economic growth and improve industrial and transportation infrastructure. "China is making direct investments in the region, for instance through Petrobras in Brazil and Codelco in Chile. In Chile alone, the Asian tiger will be putting in resources for 20 years," says Osvaldo Rosales, director of integration and international trade at the UN's Economic Commission for Latin America and the Caribbean (ECLAC).

The trade balance shows exports to China rising among Latin America's largest economies. The big winners are countries with heavy commodities exports that can compete at market levels. China is directing its capital toward countries rich in natural resources, for which it has ample need, and in order to get better pricing.

"In South America, Chinese demand is for minerals and raw materials, while South Americans are importing toys, textiles and electronics from the Asian country," says Rosales. "Since Mexico and Central America make products similar to the Chinese, in competition for the U.S. market, the relationship is less favorable."

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