COMMENT: Standing up to China
More good news for an already bulled up LatAm market comes from China, which is bearing gifts in the form of large and seemingly cheap financing.
Facilities for América Móvil, Petrobras and Coca
Codo Sinclair will funnel at least $12.7 billion in Chinese
cash to Latin borrowers this year. More is on the way.
The Asian nation has accumulated more than $2.1 trillion in
foreign reserves and is on a LatAm-wide spree to tie up raw
materials that can feed over 1.3 billion people. Much of that
population is impoverished, and the communist government aims
to create value for its people, generate jobs, and raise per
capita income. To hit target, China requires steel, copper, oil
and protein all of which LatAm has in abundance.
The flip side of the equation is that LatAm grapples with the
same social issues and is also trying to become less irrelevant
on the world stage....
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