Attorneys
Expo 2010 Shanghai: Latin America's Opportunity
June 2010 | Volume 1, Issue 6
Sumeet Chugani & Ricardo Ortiz
June 30, 2010
Sino-LatAm Trade
China has embraced Latin America’s ability to produce and supply goods that are scarce in Asia. With the ability to fulfill China’s immense need for soya beans, lithium and crude oil, Sino-LatAm trade continues to increase – with many long-term deals recently signed in an effort to satiate China’s oil demands. For example, just last month leading offshore-oil producer China National Offshore Oil Corporation agreed to pay $3.1 billion to form a joint venture with major Argentine energy firm Bridas Energy Holdings. The venture calls for future exploration and production of oil and gas in Argentina, Bolivia and Chile. As well, state-owned Petro China signed several new accords with Venezuela calling for China’s imporation of over 500,000 barrels of oil per day and another provision calling for over $1 billion in Chinese credit for Venezuelan mining projects.
China has also signed on the dotted line with Ecuador in order to lend more than $1 billion to build a hydroelectric plant, and with Brazil’s national oil company, Petrobas, for $10 million to be used for continued oil exploration. In Bolivia, Chinese investors have arranged for nearly $8 billion to fund a new highway system and rail links connecting Tacna to El Mutun for the sole purpose of continued mineral exploration. Even Chinese banks, including the Bank of China and the China Construction Bank, are looking to pursue an international banking strategy allowing for Latin American lending. China’s investment in Latin America’s rich soybean production – primarily out of Argentina and Brazil – is also worth mentioning since it topped $10 billion last year and continues to gain speed. Read more...