Inter-American Dialogue

Sinopec finds oil in Brazil

Sinopec has claimed discovery of 5,000 barrels of crude oil and 810,000 cubic meters of natural gas 2.4 kilometers below sea level in the Campos Basin, Brazil. The Spanish oil company Repsol’s affiliate in Brazil was originally active in the Campos Basin, but in October 2010, Sinopec bought a 40 percent share in the company for USD $7.1 billion. Repsol is the third-largest oil supplier in Brazil. Sinopec’s overseas production during the first three quarters of 2011 was approximately 12.7 million barrels. The newly discovered oil deposits will account for 14.3 percent of Sinopec’s overseas crude oil production.

Results of the 2nd meeting of China-Brazil High-level Coordination and Cooperation Committee

The China-Brazil High-Level Coordination and Cooperation Committee meeting was held on the March 13 in Brasilia. Both sides achieved a total of 22 results in the meeting. Among these was the initiation of a 10-year project for Sino-Brazilian work on economic and human issues. The two sides also agreed to maintain open dialogue on bilateral trade and currency issues, to welcome foreign businesses and financial institutions, to promote bilateral exchanges and cooperation on intellectual property and innovation, and to launch China-Brazil satellites in November 2012 and August 2014. In addition, both countries agreed to strengthen cooperation on agricultural trade and research.

3. 巴西食品公司计划进入中国市场
Brazilian food company plans to enter Chinese market

Brasil Foods SA has signed a joint venture with Hong Kong distributor Dah Chong Hong Holdings Ltd. to expand sales of frozen poultry, pork, and beef products to the Chinese market. The company hopes to achieve sales of 140,000 metric tons of food in the first year of the venture, and 300,000 metric tons by the end of the fifth year. The Chinese market currently accounts for 10 percent of the total sales of the Brazilian food company. A company official said that the best way to enter the Chinese market is through joint ventures.

4. 中墨两国领导互致贺电庆祝建交40周年
40th anniversary of the establishment of diplomatic relations between China and Mexico

On February 14, Chinese President Hu Jintao exchanged messages with Mexican President Felipe Calderon to mark the 40th anniversary of the establishment of diplomatic ties between the two countries. Hu indicated in his message that two countries have maintained close and friendly exchanges and carried out fruitful and pragmatic cooperation since first establishing diplomatic ties. The two countries have also maintained good communication and coordination in international and regional affairs, he said, adding that bilateral relations between China and Mexico are continuously strengthening. The China-Mexico Permanent Bi-National Commission and the China-Mexico Joint Action Plan have been useful mechanisms for strengthening bilateral ties. In his message, Calderon said that the two countries have established a strategic partnership, strengthened political dialogue, and expanded trade and economic exchanges over the past four decades. China and Mexico have also frequently cooperated in multilateral and regional organizations. The Mexican government, according to Calderon, will adhere to the one-China principle and work toward strengthening the China-Mexico strategic partnership.

5. Wang Qishan meets with Brazilian President Rousseff (English version)
On February 13, 2012, Chinese Vice-Premier Wang Qishan met with Brazilian President Dilma Rousseff in Brasilia. Rousseff said Brazil-China ties have witnessed strong growth in recent years and that political mutual trust has been enhanced amid frequent high-level exchanges. Rousseff said Brazil views its ties with China from a global perspective and believes in the strategic importance of bilateral ties.

6. 哥伦比亚外长:欢迎中国投资基础设施
Colombian Foreign Minister welcomes Chinese infrastructure investment

Colombian Foreign Minister Maria Angela Holguin said in a press conference in Beijing that Colombia has plans for a variety of infrastructure, energy, and resource-related projects, and welcomes involvement by Chinese enterprises. Holguin’s visit to China was coordinated in preparation for Colombian President Juan Manuel Santos’s visit in May. Holguin said Colombia’s foreign policy has a clear focus on Asia, and specifically on China. She also explained that improved security in recent years has allowed Colombia to expand its productivity, but that there is an urgent need to develop national infrastructure. Holguin added that Colombia’s 6 percent average annual growth rate should be very appealing to Chinese investors. In 2011, total trade between China and Colombia reached USD $9 billion and China is now Colombia’s second largest trading partner.

7. 金风科技开发智利高海拔风电项目
Goldwind to develop high-altitude wind power project in Chile

Goldwind Science & Technology Co., Ltd. announced that it signed a strategic agreement with Mainstream Renewable Power in Ireland to jointly develop the Ckani farm project in Chile’s Antofagasta region. Each side will hold 50 percent equity and the project will begin in 2012. The Ckani wind farm project will initially generate approximately 70 MW. Goldwind will provide 47 high altitude direct-drive permanent magnet wind turbines. Goldwind previously won a contract to work on Chile’s Negrete wind farm project.

8. 百度寻求国际化 试水巴西
Baidu seeks opportunity for internationalization through Brazil

Baidu, one of the biggest Chinese web services companies revealed recently that it would expand its mobile communications business in Brazil. The company believes that Brazil could be a springboard for Baidu’s entry into the global market. Baidu hopes to recruit local talent in Brazil and develop a Portuguese version of its search engine. In 2011, Baidu’s fourth quarter net profit was approximately 2.054 billion yuan, an increase of 76.9 percent over the same period in 2010.

Industrial and Commercial Bank of China successfully acquires shares of Standard Bank of Argentina

Argentina’s Central Bank announced on February 23 that it approved the Industrial and Commercial Bank of China’s plans to acquire 80 percent of Standard Bank of Argentina and its affiliates. Argentina’s president and the head of the Central Bank met with representatives from ICBC during the negotiation process. The deal means that ICBC will become the first Chinese state-sponsored financial institution to enter the Argentine market. With respect to its assets, Standard Bank of Argentina is the twelfth largest bank in Argentina.

10. 2012年中国成阿根廷第六大葡萄酒进口国
China becomes the 6th largest destination for Argentine wine in 2012

According to the Argentina Wine Association, China has replaced Mexico as Argentina’s sixth largest wine export market. The Chinese market accounts for 2.2 percent of the country’s total exports of bottled wine. The United States is Argentina’s largest wine export market, followed by Canada, Brazil, Britain, the Netherlands, and China. Argentina’s exports to China have increased by 68 percent, now totaling approximately USD $1.6 million.  Over the past two years, Argentina’s bottled wine exports to China increased nearly16 fold, from USD $110 thousand in 2009 to USD $1.6 million in 2011. The Argentina Wine Association set up offices in the Argentine Embassy in Beijing in 2012 to further develop the Chinese market.