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....
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