Arab Today, arab today china latin america have profitable but unequal ties
Last Updated : GMT 06:16:56
Arab Today, arab today
Arab Today, arab today

China, Latin America have profitable but unequal ties

Arab Today, arab today

Arab Today, arab today China, Latin America have profitable but unequal ties

Chinese PM Li Keqiang
Rio de Janeiro - AFP

Chinese Prime Minister Li Keqiang heads home from a Latin American tour on Tuesday with a briefcase full of deals that bolster a relationship profitable for the region's slowing economies but still highly unequal.

Li's visit bore the most fruit in Brazil, where he sealed deals for $53 billion in Chinese investment, mainly focused on upgrading the regional giant's strained infrastructure.

He also made stops in Colombia, Peru and Chile on the nine-day tour.

The visit followed on Chinese President Xi Jinping's last July, when he pressed the flesh in Brazil, Argentina, Venezuela and Cuba, underlining the Asian power's role as a key trade partner for the region.

"Xi Jinping has been very clear about that in the past few months, that China will be contributing much more to the region, billions more to the region in the coming years, despite slowing growth on both sides of the Pacific," said Margaret Myers, the director of the China and Latin America program at the Inter-American Dialogue in Washington.

China extended more than $119 billion in loans to Latin American countries and companies from 2005 to 2014, according to a report by the Inter-American Dialogue and Boston University.

Oil-rich Venezuela has been the biggest beneficiary, with $56.3 billion, followed by Brazil with $22 billion.

China, which is on track to displace the United States next year as Latin America's largest trading partner, has devoured the region's raw materials and natural resources, exporting manufactured goods in return.

The relationship is "still unbalanced," said Myers, even if China is slowly starting to import finished goods.

"We see a lot of Chilean wine being exported, processed coffee, chocolate, a lot of value-added agriculture," she said.

But that isn't enough to redress the imbalance, said Alicia Barcena, head of the UN's Economic Commission for Latin America and the Caribbean (ECLAC).

"Just five products, all commodities, accounted for 75 percent of the value of regional sales to China in 2013," she wrote in Spanish newspaper El Pais.

Some 90 percent of Chinese investment in Latin America meanwhile went toward extracting natural resources, mainly mines and hydrocarbons, she said.

- 'Environmental degradation, social conflict' -

Falling commodities prices in recent years have made the lop-sided relationship more evident, hitting the brakes on Latin America's economic growth.

Slowing growth in China now gives the two partners the chance to "deepen and broaden the relationship," said Joao Augusto de Castro Neves, Latin America chief at consulting firm Eurasia Group.

For China, "their priorities are shifting from facilitating import of commodities to facilitating export of their industrial capacities," he said.

"That explains their focus on infrastructure projects in Latin America," where Chinese construction firms are keen to do more business, Castro Neves explained.

The most ambitious deal of Li's tour was for a trans-Amazon railroad linking Peru and Brazil, enabling China to import Brazilian iron and soy for less money by shipping it across the Pacific.

"This new Chinese strategy converges with this greater urgency from Latin American countries to seek new investments and new sources of funding," said Castro Neves.

But there will be "hurdles," he predicted.

"The Chinese, we've seen their track record in Africa, for example. They tend to impose some unrealistic conditions when it comes to labor and the environment."

Chinese projects in Argentina, Ecuador, Nicaragua and Peru have already faced protests.

In Nicaragua, farmers and environmentalists have been protesting for months against a Chinese firm's ambitious $50-billion project to build an interoceanic canal to rival Panama's.

And in Peru, a worker was killed Monday in clashes between police and protesting workers angry over "arbitrary" layoffs at a Chinese iron ore mine.

"As the Chinese presence continues to become more visible, there's a certain discontent that will be felt more too," said Carlos Malamud, a Latin America specialist at Spain's Real Instituto Elcano think-tank.

A study carried out by universities in Argentina, Peru and the United States concluded that China's increasing presence was "a major driver of environmental degradation in the region, and was also a source of significant social conflict."

"The relationship with China is clearly beneficial for Latin America, but Latin Americans should be more careful at the negotiating table," including by banding together to leverage their collective weight, said Malamud.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china latin america have profitable but unequal ties Arab Today, arab today china latin america have profitable but unequal ties

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday