COMMENT: Standing up to China

Nov 1, 2009

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....

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial



LatinFinance Events

Poll

Are populist governments like Venezuela & Argentina turning pragmatic?

Vote