Latin America and China: Fear of Commitment?
Chinese companies see a window of opportunity to scoop up LatAm businesses and are poised to invest much greater sums. However, the region demands firmer commitment.
by Jason Mitchell Argentina turned heads in March with
a $10 billion equivalent yuan-peso swap line, which was seen as
boosting Chinese influence in the region. Sino-LatAm trade has
shot up by 40% a year since 2001 hitting a record $143.3
billion in 2008, against $102.6 billion in 2007, according to
the Economic Commission for Latin America and the Caribbean
(ECLAC). They are less interested in value-added
manufacturing or the knowledge economy, or some LatAm
countries proximity to the US market. They can carry out
that kind of manufacturing back in China, says Ortuzar.
He notes that the Chinese experience in LatAm is free of the
antagonism encountered in the US. China prefers
Chile, Peru, Brazil, Mexico and Trinidad & Tobago, because
they are seen as offering good assets at reasonable prices, as
well as the potential for growth.CDB Funds TelecomsChinese
corporations have embarked on a spending...
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