In a bid to boost its presence in regions that have traditionally been dominated by the US, China is to invest US$250 billion in Latin American and Caribbean nations in the next 10 years.
According to the World Bulletin, Chinese President Xi Jinping believes that bilateral trade between China and Latin America will reach $500 billion in the coming decade.
Xi Jinping was quoted by Venezuela's Noticias24 news site as saying: “The right moment has arrived to make progress and cooperation between China, Latin America and the Caribbean, which together represent a fifth of the Earth's landmass, a third of the world population and an eighth of the global economy, and provides enormous resources to deepen economic ties.”
Venezuela will be one of the biggest recipients and is anticipated to receive somewhere in the region of $20 billion in investments.
China has established itself as a key trading partner with Latin America, most notably in its oil purchasing activities with Venezuela, as well as iron ore and soybean trading with Brazil, and copper from Chile and Peru.
In return, China has provided access to credit and invested in a series of infrastructure projects, including the construction of roads and ports.
Latin American Markets Economist, David Rees, said of the investment: “China is no longer in the business of simply handing out blank checks. These investments are increasingly ring-fenced as strategic projects for Chinese companies to undertake.”
(Source: Mobile ZTopics)
