“…Lederman et al (2009), consistent with the neo-liberal approach, stressed the possibility of importing cheaper technology intensive products to improve economic efficiency. On the contrary, Jenkins et al (2008), more akin to neo-developmentalism point of view, emphasized the difficulty to maintain a competitive industrial sector not only because of the direct competition with China, but also the "primarization" or "deindustrialization" induced by favorable relative prices of primary and natural resource intensive goods. Due to the complex nature of trade effect, China's influence on Mercosur integration and industrialization is dynamic and is contingent upon trade structure, trade and industrial policies, as well as the state capacity of involved countries, which would evolve over time in response to new challenges imposed by the external environment and unexpected events, such as the 2008 global financial crisis.…”