Category: Latin America 🌎

News from Latin America and the Caribbean

Chinese company Sinohydro under scrutiny for bribe payments in Latin American projects

The Chinese company Sinohydro is currently under investigation for alleged corruption in Ecuador, specifically related to the Coca Codo Sinclair project. It has been discovered that the company made bribe payments totaling US$76 million, which were subsequently deposited in accounts in Panama and distributed among various individuals, Ecuadorian companies, and foreign companies in tax havens.

China-Latin America trade growth: opportunities and challenges for the region

Latin America and the Caribbean have emerged as a key destination for Chinese investment abroad, with over 3,000 Chinese companies currently operating in the region. According to the China-CELAC Private Sector Forum, bilateral trade between China and the region witnessed a significant 7.7% growth in 2022, reaching a total of US$485.7 billion.

Record trade between China and Latin America reveals economic challenges for the region

The economic relationship between China and Latin America is undergoing significant changes, according to a report from the Center for Global Development Policy at Boston University. Latin American governments are strengthening ties with China through trade agreements, supply chain investments, and financing projects. Although trade between the two regions has reached record levels, Latin America faces a significant trade deficit with China, posing an economic challenge for the region.

Chinese infrastructure projects in Latin America face challenges and criticism

The relationship between China and Latin America has evolved from a focus on raw materials to integration in logistics and value chains. However, infrastructure projects led by China in the region have faced difficulties and challenges, including labor, environmental, and quality issues. Despite this, most Chinese companies have managed to overcome these obstacles and continue to participate in investment transactions and infrastructure projects.

China strengthens its influence in Latin America through the energy sector

China is increasing its influence in the energy sector in Latin America, with Chile, Brazil, and Peru being the countries where its presence is concentrated in the power distribution market. According to data from Boston University, since 2000, Chinese development banks have financed nearly $10 billion in power generation and distribution projects in the region.

China’s dominance in world steel production puts pressure on Latin America’s steel sector

According to studies conducted by the Latin American Steel Association (Alacero), the steel sector in the region is expected to experience a gradual recovery in 2023. However, several factors contribute to the sluggishness, including uncertainties surrounding international trade and domestic policies implemented by China to revive its steel production for industrial recovery.

Sodium-ion batteries: the new China-driven alternative to replace lithium

The Chinese company JAC presented its first electric car powered by a sodium-ion battery, a much more affordable material than lithium. Sodium-ion batteries are the focus of scientific attention given their potential to dethrone lithium as a key mineral in the development of electromobility, which in the future may affect the countries that make up the “lithium triangle” in Latin America.

Chinese vehicles landing in Latin America

Photo: 2015 BYD e6 “Taxi”. By: harry_nl. Source: Flickr. Several Chinese vehicle manufacturers have begun to see Latin America as an important place to establish new plants. In late 2022, Build Your Dreams (BYD) announced that it would be building three new factories in Sao Paulo, Brazil; two will produce chassis for buses, trucks, and […]

Minerva and high Chinese demand

Minerva affirmed that it will continue to meet Chinese beef demand through four slaughter units, three in Uruguay and one in Argentina. This follows a confirmed case of mad cow disease in the state of Pará in Brazil. Minerva, South America’s leading beef processor and exporter, present in Colombia, Chile, and Paraguay, assured that the strategy will prevent its market share from being affected as China is the largest importer of Brazilian product and has a protocol for suspending business in the event of cases of atypical Bovine Spongiform Encephalopathy, something that has already occurred in the past.

The U.S. monitors China’s progress in Latin American economies

A report by the U.S. Congressional Research Service (CRS) states that the U.S. government is closely monitoring China’s advance in Latin American economies, including Mexico. The document notes that China has been increasingly engaged in Latin America and the Caribbean (LAC) since 2001, particularly in diplomatic and economic terms.
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