How China beat out the declining United States to dominate South America
I Pizarro, 62, is the energy secretary of Jujuy, a province high in the Andes that borders Bolivia and Chile. Overlooking a river, his office building is ordinary, shabby even, but the projects he and his colleagues oversee are anything but. And the one country that’s made them all possible is China. Chinese technology and money have helped build one of Latin America’s largest solar energy plants in Jujuy, where hundreds of thousands of panels coat the desert-like giant dominoes. Chinese security cameras…
Argentina has become a Chinese Yuan testing ground in trade and investment
Following several currency swaps by which China has helped to support the Argentine central bank depleted international reserves, the administration of president Alberto Fernandez intensified relations with Beijing and a year ago allowed transactions between the two countries to be made in Yuan. The Argentine central bank has not supplied information on such transactions, but analysts believe that most of the bilateral trade which reached US$ 10,2bn in the seven months of this year was done with the Chinese…
Why Uruguay’s Bet on China Matters for Latin America
A prospective free trade deal could shake up South America’s protectionist trade bloc — and China stands to benefit. Under a coalition government of the centre led by President Luis Lacalle Pou, one might expect Uruguay to keep China at arm’s length. But in a twist with extensive implications for economic relations between China and Latin America, it is doing the opposite. The Uruguayan government is pressing forward with efforts to hammer out a free trade deal with China, already the top buyer of its…
China’s trade with Latin America is bound to keep growing. Here’s why that matters
China’s trade with Latin America and the Caribbean grew 26-fold between 2000 and 2020. LAC-China trade is expected to more than double by 2035, to more than $700 billion. The US and other traditional markets tend to lose participation in LAC total exports over the next 15 years. It may be increasingly challenging for LAC to further develop its value chains and benefit from the regional market. Scenario-planning and new policies could help stakeholders prepare for changing circumstances. The rise of China…
China’s advance in Panama: An update
The June 2017 recognition of the People’s Republic of China (PRC) by the Panamanian government of Juan Carlos Varela set in motion an array of Chinese activities in Panama, as well as diplomatic changes in nearby El Salvador and the Dominican Republic—all of which grabbed the attention and concern of Washington. The election of the opposition Democratic Revolutionary Party’s (PRD) Laurentino Cortizo in 2019 has since led to greater scrutiny of various projects involving…
Argentine soy oil contracts under pressure from “wash out” by Chinese importers
Chinese importers have started to practice “wash out” with Argentine soy oil contracts, which is having an impact on the local industry. “Wash out”, means previously signed contracts are being canceled, and buyers are choosing to exchange them for sunflower oil produced in the Black Sea region, which is cheaper. This practice has been adopted in the past by the Chinese with regard to soybean imports from Brazil. The adoption of this strategy by the Chinese has led soybean oil prices in Argentina to…
Coronavirus reshapes China’s Belt and Road in Latin America
China-backed infrastructure projects slow in the region while new opportunities emerge in health and digital technology The disruptions of the coronavirus pandemic have taken a toll on China’s flagship foreign infrastructure and investment programme, the Belt and Road Initiative (BRI). Its nature, pace and scope are all likely subject to change in Latin America in the near and long-term. Many Chinese-backed projects framed as part of BRI have hit the brakes across the region, as the Covid-19 crisis has affected…
China’s commitment to Latin America to growing as United States retreats
As São Paulo hosts the World Economic Forum on Latin America 2018, it is time to consider China’s important influence on economies and business in the region since the Forum’s last meeting in Brazil, in 2011. With foreign trade worth $4 trillion, China is the world’s most important trading country. Besides the US, it is also the most important trading partner for 100 countries, including Argentina, Brazil, Chile, Peru and Uruguay. During South America’s golden decade from the early 2000s, the region…
