Latin America’s economic growth increasingly dependent on China
2012年07月05日 来源: 中国商务部
China will soon surpass Europe as Latin America’s second largest trade partner. ECLAC studies indicate, however, that trade with Latin America remains unbalanced, both geographically and with respect to the types of products being exported. China is the number one export partner for Brazil and second most important trade partner for Argentina, Costa Rica, and Cuba. According the ECLAC, Latin American entrepreneurs must begin taking advantage of free trade agreements with China to penetrate the Chinese market. The region must also develop a coordinated strategy with respect to China.
New wave of Latin American nationalism impacts Chinese companies
2012年07月05日 来源: 国际先驱导报
Latin American countries are increasingly nationalizing companies in energy, telecommunications and other important sectors. Nationalization is no longer limited in the left-wing countries like Venezuela, Bolivia and Ecuador. After decades of privatization, Latin America’s return to nationalization is regarded as the end of the age of neoliberalism.
On one hand, the wave of nationalization presents opportunities for China. In Bolivia, for example, similar management mechanisms among Bolivian and Chinese state-owned enterprises can facilitate better communication. While nationalization processes tend to exclude participation by European and US firms, China’s state-owned enterprises often benefit from favorable conditions. However, there are still many negative consequences resulting from nationalist tendencies in the region. Ecuador’s windfall profit tax and appropriation of foreign oil companies caused huge losses for Chinese enterprises, for example. If Latin American energy sector nationalization is combined with the protectionist measures among the region’s manufacturing sectors, Chinese investors will face even more challenges in the future.
India plans meeting with Latin American foreign ministers following similar steps by China in the region
According to the Indian media, the World Affairs Council of India recently held a meeting on India-Latin America relations with Latin American regional organizations. Foreign secretary of India, M. Ghana Patty, said India is organizing the first ever ECLAC foreign ministers’ meeting on August 7, 2012. The goal of this meeting is to overcome distance and language barriers, and to develop a stronger partnership with the region. Bilateral trade between India and Latin America rose from $2 billion in 2000 to about $25 billion this year.
Latin American economies fear Chinese slowdown
2012年 7月 12日 来源: 汤森路透
After years of high demand for Latin American commodities, some economies in the region have become over-reliant on China for continued growth. With the exception of Mexico, commodities account for more than 60 percent of exports from the region’s major economies. Slowing Chinese growth is now impacting the prices of raw materials. For the first six months of 2012, growth in Brazilian exports to China fell by more than half. In April, Peru suffered a trade deficit with China for the first time in three years. Chile’s copper exports to China fell in May by 16 percent. Ratings agency Fitch said that if the Chinese economy grows by 8 percent by the end of this year, economic growth in Argentina, Brazil, Chile, Colombia, Peru, Venezuela and Uruguay is expected to fall by an average of 1.5 percent.
Cuba’s economic reforms advance slowly
2012年07月12日 来源: 金融界
On July 4th, Raul Castro arrived in China on a state visit. Since 2006, when Raul assumed control of the Cuban government, Cuba has been trying to increase innovation and address economic stagnation. The Cuban economy is opening very gradually, especially in the tourism and real estate sectors. “Cuba’s economic change is not called economic reform — it is called an update to the production model, but I think it is essentially economic reform,” said researcher Xu Shicheng, an expert on Cuba from the Academy of Social Sciences. Despite its significant agricultural and natural resource production capacity, however, the island will face daunting economic challenges in coming years.
China’s Huawei and the Brazilian Communications Department sign a cooperation agreement
Communications Minister Paulo Bernardo and Xiong Wei, President of Huawei in Brazil, signed a cooperation agreement on July 11th stating that the two parties will conduct strategic cooperation in the field of LTE/EPC network technologies to develop local manufacturing of telecommunications equipment. Bernardo said Brazil decided to choose Huawei as its strategic partner in the field of communications because it is a leading global provider of information and communication technologies and solutions. He hopes that this agreement will support further South-South cooperation. Huawei entered into the Brazilian market in 1999 and is now the main provider of communications equipment and network solutions for Brazil.