China has become an important partner for Bolivia, both diplomatically and economically. These two aspects of the relationship overlap frequently, as China and Bolivia have signed over 400 cooperation, aid and loan agreements. In terms of investment, China has been a small but fast- growing partner, currently active in Bolivia's mining sector and set to be Bolivia's main partner in developing its lithium reserves. Bolivia's exports to China have been concentrated in minerals, while imports have been concentrated in manufactured capital and consumer goods. Despite high prices for metals, Bolivia has experienced a significant trade deficit with China. Because of their high concentration in the mining sector, exports to China have put pressure on Bolivia's water supplies.

After exploring the relationship on an aggregate level, this chapter turns to case- study evidence in the tin- mining sector, with the participation of the Chinese firm Jungie Mining. Our research reveals that Chinese tin mining is associated with water pollution and conflicts over water use. Moreover, the case of Jungie indicates that there is a lack of capacity and/ or willingness to enforce and upgrade existing environmental laws on the part of the Bolivian government.

Despite the fact that Jungie Mining is in an early stage, the firm's activities have already been suspended due to water pollution in surrounding communities, and it has already clashed with local communities over water rights. This is exacerbated by the lack of action on the part of the Bolivian government, which allowed the firm to operate for four years without obtaining an environmental license and has set a troublesome example by delaying construction of pollution- remediation infrastructure in publicly run mining operations.

The social aspects of our case study are more positive. Jungie has actively engaged in community- consultation processes and has respected their outcomes. This has ensured that ore- processing facilities are located in communities that want them and away from those that do not. In addition, the firm is operating through a joint venture with a local cooperative. Such an arrangement could bring new technology to the cooperative sector and ensure that the local population benefits from mining.