Chinese investors go big in Latin American energy
Some of China’s biggest power companies are starting to look beyond acquisitions to greenfield projects in the region
Rising infrastructure investments have confirmed
China’s interest in forging links with Latin
America beyond buying commodities, and energy projects have
been at the heart of the developing relationship.
Brazil, with its rushing rivers, eager consumer base and
local construction and funding resources, has attracted
particular attention from China’s massive
state-owned enterprises. "Brazil is a top destination for these
companies, but it is also a showcase. It is part of a broader
Chinese plan for infrastructure investment and diversification
in the region," says Margaret Myers, director of the
China-Latin America Initiative at the Inter-American Dialogue,
a Washington DC-based think tank. "Investments are very limited
elsewhere, where we have seen smaller deals."
She points to opportunities in power transmission in Ecuador
and Mexico, especially with respect to the latter
country’s new energy reforms. "Whether or not the
country goes for the Chinese company is another question,"
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.