Externalities can impact the bottom line

Over the past two months, local indigenous protests have blocked the development of the Las Bambas mine in Southern Peru, with global repercussions: Las Bambas produces two percent of the world’s copper.

The Fuerabamba tribe had blocked access to the mine and asked that MMG — subsidiary of China Minmetals Corporation — pay for the use of a road that crosses Fuerabamba land.  Las Bambas uses this 325km road to transport copper through the Apurímac and Cusco departments and to the coast. The Fuerabamba has asked for payment of $31m for use of the road.

Though the road had been blocked for over two months, the past two weeks saw mounting tensions.

MMG was finally feeling the pinch of not being able to continue production, stating at the end of March: “we expect that production will be progressively impacted starting this week” and declaring force majeure in its sale contracts, resulting in delayed shipments and lost revenue.

On the Peruvian side, local authorities attempting to intervene had stones thrown at the helicopter transporting them, while the Fuerabamba saw their lawyers and leader Gregorio Rojas detained by the government. The national government declared a state of emergency, and sent in Prime Minister Salvador del Solar to sit down with the two sides.

With the pressure on, an agreement was reached allowing for the road to reopen on Monday. As part of the deal, the government of Peru has agreed to pave and improve the road connecting Las Bambas to the coast, as well as in the border area, at a cost of almost $800m. 

While this story has a happy ending, there are a few key takeaways for Chinese corporates doing business in Latin America. We’ve highlighted time and again how civil society plays a bigger role in Latin America than elsewhere — indigenous peoples are key stakeholders — and companies doing business in the region need to take note. This is important not only to address externalities such as environmental, social, and governance issues that investors are increasingly interested in. As the Las Bambas experience shows, Ignoring those externalities can have a direct impact on the bottom line, as well.

Top Stories

Presidente de Panamá inicia gira de trabajo en China— Forbes México 
Lanzan agenda bilateral enfocada en la conectividad de Panamá con China— Metro Libre
Panama president cheers China's 'Belt and Road' initiative, hoping to offer gateway— Japan Times
Foreign Ministry Spokesperson Geng Shuang's Regular Press Conference on April 2, 2019— Ministry of Foreign Affairs of the PRC
Panamanian President Juan Carlos Varela makes a trip to China.

Governo Bolsonaro manda sinais confusos a Pequim— Deutsche Welle  
Brasil não pode colocar 80% da economia nas 'mãos' da China, diz Tereza Cristina— Topmídia 
'China não é ameaça, e sim parceiro estratégico', diz Mourão— Folha
Mourão quer mais exportações do Brasil para a China— Renova Mídia

Deutsche Welle puts it best: “Bolsonaro governments sends confusing signals to Beijing.” While other members of the government carp against Beijing, Vice President Mourão continues to chum up to China.

La compleja invitación de China para que el Presidente visite la sede de Huawei— Economía y Negocios
Perú, interesado en que la empresa china Huawei instale una planta de ensamblaje— EFE
Peru and Chile are both angling for Huawei to invest in a plant in their countries.

Congreso de Argentina debatirá ley para supervisar estación espacial china en Patagonia— Reuters
Los misterios de la base de China en Neuquén: alerta de Cancillería, una inspección oficial y 7 científicos chinos del Ejército— Infobae
Cancillería argentina pide inspeccionar base china en Neuquén ante reclamo de otros países— La Gran Época 
Argentina wants more oversight over China’s space tracking center in Neuquén.

China’s engagement with Trinidad and Tobago— The Global Americans 
Bracing for the worst— Daily Express
Our friend Evan Ellis raises concerns about China’s role in Trinidad and Tobago.

Iniciativa inversora china avanza por América, agita a EEUU— El Nuevo Herald
China's construction binge spreads to Americas, rattles US— Associated Press
...and the AP is on it.

EEUU y China entraron en una guerra comercial que ganó México— Infobae
México se beneficia de las disputas comerciales entre China y Estados Unidos— France 24
¿Por qué México gana con el conflicto entre EU y China?— Vanguardia 
Argentina, EE.UU. y China— Perfil
Aproximação com EUA não pode afastar Brasil da China, diz consultor— UOL Online
¿Cómo responderá México a China?— El Heraldo de México
China podría llenar el hueco en Centroamérica si Trump suspende ayudas— Hoy Los Angeles
OMC ve beneficio económico para México si exportaciones chinas fallan en EU— Proceso 
EUA critica 'diplomacia da dívida' da China em América Latina e Caribe— GaúchaZH
Desafíos de la Argentina frente al conflicto entre China y EEUU— El Cronista
Trade war.

China — LAC

Presión de China a la Argentina para cerrar el acuerdo de la polémica central nuclear— Infobae 
Argentina y China aún están discutiendo proyecto de energía nuclear: funcionario— Reuters

São Paulo anuncia abertura de escritório comercial na China— Agência Brasil

¿Es América Latina un patio trasero estadounidense?— Radio Macondo

A cold wind starts to blow— Daily Express

Resolving the Venezuelan crisis— Daily Express

México y China diseñan asociación estratégica: SE— El Economista 

La estrategia de ProChile para posicionar a los emprendedores chilenos de alto impacto en China— Diario Financiero  

Chile mira con "mucho interés" iniciativa de la Franja y la Ruta, dice Piñera— Xinhua

La harina de soja, principal producto argentino de exportación, no tiene lugar en China— Clarín

‘Relaciones bilaterales China – Perú’ y ‘Revalorizando el patrimonio cultural de Lima’— Expreso 

Acuerdo con China, biodiésel argentino y soja USA sostenible dirigen el mercado de las oleaginosas— Agrodigital

China. Los puentes para llegar al gigante asiático— La Nación 

China-Latam Think Tank meets for the first time— GRI Club

LATAM Airlines Chile and China Eastern Airlines commence codeshare agreement— CAPA

China: "América Latina no pertenece a ningún país y no es el patio trasero de nadie”— MDZ

No Brasil, app chinês similar ao WhatsApp virou classificados de sexo— Veja 

Argentina: Bank of China desembarca en el país con una inversión de u$s50 millones— América Retail

Brasil pode vender mais carne suína para a China com surto de febre suína, diz CEO da BRF— Terra 

Empresa china Hanergy desarrolla proyecto de energía solar en edificio de Sao Paulo— Xinhua

China y Argentina construyen cuatro parques eólicos en el este patagónico— People's Daily

Bolivia y empresa china Haier exportarán Smart TV a mercados de Mercosur y CAN— Xinhua

Afirman que el futuro del crecimiento del vino chileno está en China— América Economía 

Una nueva delegación china busca hacer negocios con Argentina— Clarín

La oportunidad de China y América Latina— Notimérica

TLC China - Perú: culminó primera ronda de negociación para mejorar el acuerdo— La República

China está de moda en República Dominicana y viceversa— Listin Diario

Com futebol brasileiro no alvo, governo chinês quer ampliar investimentos na América Latina— Lance

"Risco-China" faz Credit Suisse cortar recomendações de Klabin e Suzano— Infomoney

Gobierno Nacional apoyará exportación de banano a China— Caracol

Cerezas, la fruta favorita de la nueva clase media en China— Clarín 

América Latina en la Nueva Ruta de la Seda— CADTM

Tendencias de las relaciones de las relaciones entre América Latina y China— Con Nuestro Peru

Inversiones chinas en Argentina— BAE Negocios

Korea — LAC

Guatemala espera reanudar negociación de TLC con Corea del Sur— Yahoo Finanzas 

Chihuahua apuesta por empresas coreanas— Automotive News México 

Japan — LAC

SHCP México se reúne con inversores japoneses y tienen ‘diálogo fructífero’— Forbes Méxcio 
Secretaría Hacienda México se reúne con inversores japoneses— Reuters

Antofagasta secures debt financing for Chile expansion— Mining Weekly

Banco japonés cierra sucursal en Chile tras casi 40 años— Diario Financiero

Executivo de grupo sócio da Usiminas aposta em recuperação do Brasil— Estado de Minas

Guanajuato busca exportar alimentos a Asia— El Sol de León

Guatemala busca concretar acuerdos comerciales con Perú, Cuba y Japón— República

México es estratégico para la inversión: Yasushi Takase— El Sol de México

Estados del Bajío van por inversiones a Japón— 20 Minutos 

Inversiones japonesas aumentan participación en el estado de Querétaro— El Economista 

Más de 600 mil kilos de mandarinas peruanas llegarán a Japón en 15 días— el Economista América 

India — LAC

Exclusive: Venezuela oil exports stable in March despite sanctions, blackouts— Reuters

India seeks Mexican crude to meet its growing energy needs— Financial Express

President Kovind visits Chile; address students on 'Gandhi for the Young' at the University of Chile— Merinews
Diversify exports basket to boost India-Chile trade: Kovind— SME Times

Bolivia, India sign satellite, software agreements— BN Americas 

India gets access to Bolivia’s lithium for EV batteries— PV Magazine

India-Mexico bilateral trade breaks record; touches $10 billion— Financial Express

India and Latin America clean-sweep YouTube top-10 artists chart— Music :) Ally

ASEAN & Oceania — LAC

Exclusive: Investors drop out of two groups vying for Petrobras' gas pipeline unit - sources— KFGO

GCC — LAC

Dubai Chamber opens representative office in Argentina— Emirates News Agency

Top executives, leaders to take part in Latin America forum— Gulf News

Brazil presents projects worth USD 500 mn in UAE— Mena FN

Guaidó vs Maduro goes multilateral

This week was expected to be a big week in China-Latin America relations, with the Inter-American Development Bank (IDB) scheduled to hold its Annual Meeting in Chengdu, China. However, on Friday the IDB announced in a terse message that the Annual Meeting “would not be held", and would be relocated to a place recommended by management. The cancelation was a shocking turn of events, especially in the context of the overall trajectory of the Latin America-China relationship.

The decision to reschedule pivoted on China’s refusal to allow the IDB Executive Director for Venezuela Ricardo Hausmann to attend the annual meeting. Hausmann had been appointed by Venezuela's interim president Juan Guaidó to represent his country at the bank, to replace Nicolás Maduro’s proxy. The IDB recognized that appointment earlier this month. Underscoring the uncertainty, the IDB currently does not list an Executive Director for Venezuela on its website. But, the overwhelming support for Guaidó in the Western Hemisphere made the decision a foregone conclusion.

This all started with the Trump administration trying to limit Chinese influence in Latin America, and the IDB coming into its cross-hairs. The White House had been irritated by the otherwise-pro formadecision to hold the IDB Annual Meeting in a shareholder country (Annual Meetings had been held in Busan, South Korea, and Okinawa, Japan). US Treasury Undersecretary for International Affairs (and President-presumptive of the World Bank) David Malpass sent IDB President Luis Alberto Moreno a nastygram complaining about the decision to host the IDB Annual Meeting in China, writing: 

I have serious reservations about the bank's process that led to that initial decision, and I do not think the 2019 meeting could be nearly as successful in Beijing as it would be if held in the region,

While unilateral demands like these are the Trump administration’s bread and butter, they fell on deaf ears. Moreno smartly disarmed the issue with a planned IDB 60th Anniversary celebration in Washington, DC, saying: “We have found the best of all worlds.” Thus stymied, the US seemed to have lost its traction on the issue, and China would have another of the diplomatic set-pieces it sees as a key part of its global engagement.

But China’s decision to double down on its support of Venezuela’s Maduro (who literally cannot keep the lights on), and refuse Guaidó’s representative entrance to China to attend the Annual meeting, has snatched defeat from the jaws of victory. It turned bilateral one-upmanship between China and the US into a multilateral statement on democracy in the hemisphere that China could not gainsay. Deputy Assistant Secretary of State for Western Hemisphere Affairs Kimberly Breier turned the US position from great power politicking to standing up against what "violated a century of diplomatic norms.” 

Breaking its silence four days after the cancellation, the Chinese Foreign Ministry laid out its view that:

The overwhelming majority of the IDB membership, including China, are of the view that the IDB annual meeting, as a gathering for the financial sector, should focus on financial cooperation. As such, it is hardly an appropriate venue for discussions of sensitive political issues. However, a certain country had continuously stirred up the sensitive political topic of the Venezuelan issue.

Local authorities are acting like nothing is wrong, with Chengdu and Panama signing an MOU (国际朋友圈再扩大！成都与巴拿马城建立友好合作关系). But the fact that websites like Sina and Soho now turn up anodyne articles on the planned Chengdu Annual Meeting as “not found” says everything about how Chinese authorities feel this has turned out.

China would seem to have misjudged how Latin America has shifted its position on Maduro, while the latter has become ever more dependent on his few sponsors left. If China had accepted Guaidó’s man, Maduro would not have changed his relationship with China. In not accepting Guaidó’s man, China has run the risk of damaging its relationship with the entire region. 

A smarter move by Chinese diplomats would have been to split the difference by continuing to not recognize Guaidó as president of Venezuela but allowing Hausmann in as a duly recognized member of the IDB Executive Board. This would have strengthened China’s multilateral institution and rule-of-law credentials that have been brought into question. It would have also helped concerns that China wants to ride roughshod like Latin American observers have seen it do in Africa. 

The Chinese government would do well to learn the lesson that, despite the economic and geopolitical power differential, it would benefit from working multilaterally and treating Latin America as an equal. The Trump administration should learn this lesson, as well.

Top Stories

牛油果要跟车厘子一决高低，中国人会投票给谁？— 华尔街见闻
The WSJ asks the question of the hour: what does China like more, cherries or avocados?

'Nosso grande parceiro é a China, em 2º lugar os EUA', diz Bolsonaro— Estadão
Ruralistas reclamam de viés anti-China no governo Bolsonaro— Folha
EUA, Canadá, Austrália e Japão ficam liberados de visto para o Brasil— Valor
Bolsonaro reforça China como principal parceiro comercial do país— Correio Brasiliense
Venezuela e China devem ser temas principais de conversa entre Bolsonaro e Trump— O Globo
Brasil aceitará dinheiro chinês, diz Guedes nos EUA— Istoé 
Brasil não vai reduzir exportações para China, diz Paulo Guedes— Folha 
China, 3º na cama de Brasil e EUA— Folha 
Brazilian President Jair Bolsonaro visited Donald Trump at the White House, with China being the third wheel. The Brazilian government has really toned down the anti-China rhetoric. Japan gets a boost from the meeting, joining the US, Australia, and Canada in getting Brazilian tourist visa requirements waived.

Los dueños de US$1.800 billones que buscan negocios en Colombia— Dinero
Eight funds from Canada, the US, China, Singapore, Japan, Korea, and Dubai — controlling a total of $1.8t in assets — visited Colombia looking for investments.

China offers help to Venezuela to restore power— Reuters
China pronta a ajudar Venezuela após apagão— Jornal de Angola
China ofrece ayuda a Venezuela con el peor apagón de su historia— Radio Canada 
A China também é responsável pela crise venezuelana atual— Esquerda
China pesa más en Venezuela que en toda América Latina— Al Navío
China offers to help Maduro turn on the lights.

El Salvador halts Taiwan FTA cancellation as China ties probed— FT
El Salvador: China no menciona en plan el futuro del TLC— El Economista 
Supremo salvadoreño suspende “provisionalmente” cancelación del TLC con Taiwán— La Gran Época
The new government of El Salvador President Nayib Bukele is reviewing the impact of the country’s decision last year to diplomatically recognize Beijing.

US expert warns: Be cautious with Chinese loans— TT Guardian
T&T blanked as Trump invites Caribbean leaders to meeting— TT Daily Express
Trinidad & Tobago blanked as Trump invites Caribbean leaders to meeting— Stabroek News
Rowley unfazed by Trump blank: So what?— TT Newsday
Did Trinidad & Tobago get snubbed by Trump because of a close relationship with China?

Acordo EUA-China e o agro brasileiro— Folha
Mercados mexicanos avanzan por renovado optimismo sobre negociación comercial EEUU-China— Reuters
Sale ganón aluminio con guerra EU-China— El Norte 
Fin de una era: por qué China ya no crece a "tasas chinas" y cómo afecta a América Latina— El Fulgor
Trade war.

How Chinese Investment in Latin America Is Changing— Americas Quarterly
Our friend Otaviano Canuto takes to the pages of Americas Quarterly to analyze how Chinese investment in Latin America is evolving from infrastructure and energy to services.

Latin America’s gold e-rush— Financial Times
Ola de inversiones apuntalan el e-business en América latina— El Cronista 
The Financial Times highlighted our comments on SoftBank’s Latam fund:

However, SoftBank, which is not known for being either soft or slow, has bigger sums to spend. That potentially makes it less agile. Latin America also still has relatively few attractive companies operating across multiple countries to invest in. Novam Portam, the Asia-Latin American consultancy, even wonders: “Will SoftBank have the patience to do the diligence required? Or will the headline $5bn not get put to work?”

Para Uds que lo prefieren en español, el articulo también se publicó en El Cronista:  

Novam Portam, la consultora de Asia-América Latina, incluso se pregunta: “¿Tendrá SolftBank la paciencia para hacer la diligencia necesaria? ¿O será que los tan anunciados u$s5.000 millones realmente no serán puestos a trabajar?

China — LAC

车厘子输华效应燃动南美— 东方财富网

Aguacate, frutas y carne locales llegarían hasta China— Portafolio
Colombia tras mercado agro en China— El Nuevo Siglo
Colombia busca estrechar lazos comerciales en China con productos agrícolas— Panam Post
Colombia: Estos productos nacionales llegarían a China— América Retail
Colombia desea ampliar el ámbito de su comercio con China, dice viceministra— People’s Daily
Colombia va por más inversiones de Asia— Portafolio

TLC Perú - China: ronda de negociaciones para optimización del acuerdo iniciará en abril— La República
Perspectivas de la cooperación China-Perú— El Peruano

Producción cobre Las Bambas en Perú podría verse afectada en "corto plazo" por bloqueo: MMG— Reuters
China MMG dice declarará fuerza mayor en ventas de cobre mina Las bambas en Perú— Reuters

Celebran en Chile ser principal exportador de frutas frescas a China en 2018— Xinhua
Chile consolida su posición como principal exportador de frutas frescas a China— La Tercera 
Empresa china SDIC busca expandirse en industria agrícola chilena— Xinhua

China entrega a Panamá estudio para tren hasta la frontera con Costa Rica— Estrategia y Negocios 
China entrega a Panamá estudio para construir un tren hasta Chiriquí— En Segundos

Delegación china visitará Argentina para conversar sobre demorado acuerdo por planta nuclear: fuente Gobierno argentino— Reuters 
Argentina sostiene que recibirá a una delegación china para conversar sobre demorado acuerdo por planta nuclear— América Economía 
China and Argentina resume talks for the construction of a nuclear power plant— MENAFN

A modern Trojan horse— TT Daily Express
Chinese Embassy refutes claims— The New Today

Ecuador: Pitahaya exporters eyeing Brazil, Peru and China— Fresh Plaza

PetroChina expects its Venezuelan crude imports to fall 33% to 10 mil mt in 2019 — S&P Global

Nueva oficina comercial, TLC remozado: China-Chile ad portas de la visita de Piñera a ese país— Diario Financiero

El duro y lento camino del tequila mexicano por hacerse popular en China— Yahoo Finanzas

O que falta a China fazer?— Brasil de Fato

Escuelas de fútbol, un nuevo puente entre Uruguay y China— Xinhua

México debe reforzar su mercado interno y trabajar con China para fortalecerse, ven economistas— Periódico Central 

China Fishery denuncia campaña para bajar valor de activos en Perú— Gestión 

Argentina: Jujuy y China están impulsando gigantesca planta solar la más grande América Latina— Energia Limpia XXI

Dos aerolíneas chinas llegan a la Argentina y negocian vuelos directos— Cronista 

Ahora, Argentina podrá exportar miel a China— Revista Chacra

México quiere un acuerdo de inversión con China: Seade— El Economista 
El intercambio comercial entre México y China es de 90 mmdd— Al Momento

EDP poderá criar parceria na América Latina com chineses se OPA falhar, avança a Reuters— Eco
EDP pode criar joint venture com chinesa CTG para Brasil e América Latina— Epoca Negócios

China vê potencial para ampliar negócios com etanol e celulose no Brasil— Agro em Dia

Made in China: El megaproyecto astronómico del gigante asiático en Chile— La Tercera 

Southern Copper planea construir nueva fundición en Perú por US$1.300M y evalúa proyecto de litio en México— Portal Minero

Firmas chinas ponen atención al Tren Maya: embajador — El Financiero 

Perú apunta a exportar US$ 5,000 millones en productos no tradicionales a China— Agencia Andina

Chinese team travels to Peru to inspect health certification of pomegranates— Fresh Plaza

Korea — LAC

Presidente de Costa Rica firma Tratado de Libre Comercio con Corea del Sur— La Vanguardia 

Grimaldo propone a Corea establecer en la ZLC centro de distribución— La Estrella de Panamá

RD puede ser centro de producción de Corea para América Latina, América del Norte y Europa— Metro DO

Busca Femat estrechar lazos de cooperación entre Zacatecas y Corea del Sur— Fresnillo

Japan — LAC

Grupo parlamentar articula acordo para liberação comercial com Japão— Ariquemes
Governo japonês fala em ampliar cooperação e negócios Brasil-Japão— Cenário MT

Banco de Crédito del Perú debuta en el mercado de capitales japonés— Lex Latin

Em Washington, Bolsonaro vai anunciar fim de visto de entrada no Brasil para visitantes de quatro países— O Globo 

India — LAC

Reliance sends fuel from India, Europe to Venezuela to sidestep U.S. sanctions— Reuters

ASEAN & Oceania — LAC

Chile edges closer to Vietnamese market access for apples, cherries— Fresh Fruit Portal 

InstaReM Raises $41M To Expand Into Latin America— PYMNTS

Singapore’s GIC ‘hopeful’ on Brazil— The Malaysian Reserve

GCC — LAC

Emirates lanza oferta con descuentos para vuelos desde Chile a destinos lejanos como Japón y China— La Tercera 

Softbank stands up $5b Latam tech fund. But will it invest?

阅读更多关于此新闻的文章，请点击链接: 软银发起五十亿拉美科技美元基金，但它会投资么？

Softbank, the iconoclastic multinational holding conglomerate led by Masayoshi Son, announced last week that it was setting up a $5b Latin America tech fund. The fund will be led by Marcelo Claure, a long-time Softbank executive who has led the company’s turnaround of the US telecom operator, Sprint. $2b of the fund is committed from Softbank, while another $3b will be raised externally. This is similar to the model used for Softbank’s $100b flagship Vision Fund, which has $60b in external funding, mostly from Saudi Arabia and Abu Dhabi.

While the size of the fund is a game-changer for the region, Softbank’s interest in Latin America is nothing new. Softbank was an initial investor in Brazil’s 99, and sold its stake to China’s Didi Chuxing when the latter expanded into Latin America. Last year, it led a $111m investment round in Loggi, a Brazilian start-up that specializes in last mile logistics. Loggi levered Softbank’s relationships to establish a joint venture with Didi in Mexico. And earlier this year, Softbank led a $500m investment round in Brazil’s Gympass, “the Netflix of gyms."

The fund is an indication that Softbank is betting big on Latin America. “There is so much innovation and disruption taking place in the region, and I believe the business opportunities have never been stronger,” Marcelo Claure said in the announcement. This kind of interest could be a sea-change for the relatively sheltered Latam start-up universe — Softbank is not known for being soft. “You think they can’t eat anymore,” said one VC leader in Silicon Valley last year, describing Softbank’s style. They “cram it in, put it in their pockets, take doggy bags, whatever.”

The real test for Softbank’s new fund might actually be dealflow. Plenty of tech investors have looked at Latin America and been frustrated by the fact that there are few attractive firms that operate in multiple countries. Will Softbank have the patience to do the diligence required across all the countries in the region? Or will the headline $5b not get put to work?

Top Stories

Viene Bank of China e invertirá u$s 50 millones— El Cronista 
El Bank of China desembarca en Argentina— Impulso 
Bank of China continues its expansion across Latin America, starting the process of setting up shop in Argentina.

每经专访上海大学拉美研究中心主任江时学：站在3000亿美元经贸新起点 成都“纽带”将带动西部深化与拉美合作 | 每经网— NBD
NDB interview with Jiang Shixue, Director of the Latin American Studies Center of Shanghai University setting the stage for this month’s IDB meeting in Chengdu.

Consorcios internacionales pujan por primera línea de Metro de Bogotá por 4.500 mln dlr— Reuters
Estos son los consorcios que aspiran a construir el metro de Bogotá— W Radio
China Railway and Power China are among the consortia bidding to build Bogotá’s $4.5b first metro line.

Four Minute Foreign Policy— Foreign Policy Institute at Johns Hopkins SAIS
SAIS’ Benjamin Creutzfeldt talks about how he looks for the signal against the noise in China-Latam relations.

China’s Growth Rebalance with Downslide— LinkedIn
Otaviano Canuto’s analysis of the impact of China’s growth rebalancing on Latin America and the world.

Bolsonaro confirma viagem à China neste ano— EBC
Brasil deixa de usar fundo bilionário da China por cegueira política— Brasil 24/7
Bolsonaro diz que vai fazer visita oficial à China este ano— Globo
Ataques de Bolsonaro fazem China travar financiamento ao Brasil, diz jornal— O Antagonista
Retórica anti-China trava financiamento ao linhão— Valor
Brazil’s China policy continues to confound. President Jair Bolsonaro announces he’ll make a state visit later this year, but activity of the China-Brazil Cooperation Fund has ground to a halt in response to “anti-China rhetoric."

Jorge Faurie reveló que el Grupo de Lima iniciará negociaciones con China, Rusia y Cuba para acelerar la salida de Nicolás Maduro— Infobae
Crisis de Venezuela: qué significa el veto de Rusia y China a la resolución de EE.UU. en el Consejo de Seguridad de la ONU— BBC
Venezuela crisis: Who is buying its oil now?— BBC
"EE. UU. debe persuadir a Rusia y China de rechazar a Maduro": Duque— El Espectador
China asegura que las sanciones extranjeras solo empeorarán la situación en Venezuela— Notimérica
Brasil quer convencer Rússia e China a abandonar governo Maduro— UOL Online 
Crise na Venezuela: Quais são os interesses da China no país latino-americano?— BBC
Brazil Foreign Minister Calls on Russia, China to Oppose Venezuela’s Maduro— WSJ
China warns of repeating history's mistakes with Venezuela— Reuters
EEUU presiona a India para dejar de comprar crudo venezolano: enviado— Reuters
Venezuela continues to sit on a powder keg, with China playing a key role, whether it wants to or not.

BCR: Guerra comercial entre EE.UU.-China sería un riesgo para el crecimiento del Perú— El Comercio 
Goldman Sachs recortó su expectative de crecimiento para América Latina— El Cronista 
Central Bank: US-China tension could benefit T&T— Trinidad Express
Por que um acordo comercial entre EUA e China pode prejudicar o Brasil— Exame
U.S. Trade Policy in North America, China, and Beyond— Center for American Progress 
Guerra comercial entre China y EU, oportunidad para México: Citibanamex— El Sol de Tampico
Canada, Argentina displace US as soybean supplier to China in January— agriCENSUS
Colheita no Brasil limitará compra de soja dos EUA pela China, diz corretor— Globo 
El libre comercio aceleró el PIB de Perú en el 2018— El Tiempo 
Acordo entre EUA e China pode prejudicar soja brasileira— O Antagonista 
Mexican vendors eye gains from U.S., China tariff tiff— Furniture Today
China ainda não faz novas compras de soja nos EUA apesar de possível acordo— Notícias Agrícolas
China importa menos soja em fevereiro, mas ainda foca demanda no Brasil— Notícias Agrícolas
China reduz compras mundiais de soja, mas importa o dobro do Brasil— UOL Online
Trade war.

Chile se prepara para un fuerte incremento de la inversión china— Expansión 
Para Uds. que lo perdieron la semana pasada, nuestro socio Mike Derham habló sobre la conexión entre China y Chile. La versión en español:

"China podría comenzar a mirar más hacia dentro de sus fronteras a causa de la desaceleración de su economía", augura Mike Derham, socio de Novam Portam, una consultora especializada en las relaciones entre Asia y América Latina.

China — LAC

¿Xiaomi llega oficialmente al Perú? La compañía china busca gerentes de ventas en LinkedIn— RPP

Como será a segunda tentativa da Xiaomi no Brasil— Exame

Gigante chinesa na fabricação de celulares volta ao Brasil— Estado de Minas

Entra en vigencia internacional la modernización del TLC entre Chile y China— el Economista América 

Aduanas de Chile y China inician negociaciones de reconocimiento mutuo en programas de Operador Económico Autorizado— Portal Portuario 

Barbados Signs MOU with China— TV6 TNT

Coca Codo Sinclair: los problemas de la multimillonaria represa que China construyó en Ecuador — BBC

Argentina compra 200 vagones eléctricos a China para renovar línea ferroviaria— Xinhua 

China finances rolling stock in Argentina— LatinFinance

Australia alerta por competencia de frutan chilena en China— Revista Capital 

Australia warned of growing Chilean threat in China— AmericaFruit

Argentina: Puerto de Concepción del Uruguay embarcará su quinto cargamento de madera con destino a China— Portal Portuario

“Le recomiendo a Bukele que no se pelee con China”— El Faro

Brasil continua refém das commodities – e da China— Diarinho 

China visa acordos de longo prazo no setor alimentício do Brasil, diz embaixador— Notícias Agrícolas

Trasnacional china de energía renovable tiene en la mira a México para invertir— Diario de Mexico 

China podría importar harina de soja argentina por primera vez en la historia— Impulso 

In Jujuy, China is building Latin America’s largest solar plant: Cauchari— Buenos Aires Times

China, país invitado de honor en ANDICOM 2019— Canal Trece

Tráfico de buche de totoaba, afectado en México y China— Televisa

Marfrig espera novas habilitações fábricas do Brasil para exportações à China— Reuters

Exportaciones no tradicionales a China sumaron US$ 477 millones en 2018— Agencia Andina

Chinese miner MMG to delay copper shipments as Peru community blocks road — Nasdaq

"La Franja y la Ruta es una propuesta global que resume la política internacional de China", destaca embajador argentino— Xinhua

Finance minister says Jamaica owes China $79 billion— St. Lucia News

Editorial | Chinese Business Group Is A Start— The Gleaner

China eyes long-term food processing deals in Brazil: Chinese official— Reuters

Viento de frente para Argentina: China gana protagonismo y golpea a la región— BAE Negocios

Franco Macri, un pionero en el vínculo con China— Grupo La Provincia

New cherry variety will extend Chilean cherry season— FreshPlaza

China Harbour Monopoly— The Gleaner

Por primera vez el banano colombiano es enviado a China— RCN Radio

China Railway’s road in TT— TT Newsday

Puerto de Ilo, Perú: Bolivia proyecta exportar gas natural a China— Mundo Marítimo

Argentina: Jujuy y China impulsan gigantesca planta solar más grande América Latina— Energia Limpia XXI

Latinoamérica, nuevo escenario de la pulseada diplomática entre China y Taiwán— Total News

China ampliará presencia en México en 2019 con fábrica de autos eléctricos— Méxicoxport 

Las seis apuestas de inversión de China en Argentina— La Voz del Interior

Didi Chuxing publica informe sobre sus conductoras en China y América Latina— Xinhua

China en América Latina: ¿el inicio de una nueva Guerra Fría?— El Orden Mundial

El impacto de las inversiones de China en América Latina— La Prensa 

Korea — LAC

Habilitação de frigoríficos brasileiros mostra confiança da Coreia do Sul— UOL Online

Brasil avança no mercado de proteínas da Ásia— Folha

Citibank otorga financiamiento de USD 42 millones a Savia Perú— LexLatin

Corea y Costa Rica aprueban nuevo TLC— Forbes México 

RD puede ser centro de producción de Corea para América Latina, América del Norte y Europa— El Caribe

Japan — LAC

Los hidrocálidos que mexicanizan la industria japonesa— Innovacíon Económica

“Corazón hidrocálido, mente nipona”: Ximena Fukawa, la líder mexicana de CK Japón— Innovacíon Económica

El arroz orgánico argentino busca entrar al mercado japonés— Agritotal

Tras cerrar acuerdo con Sushiro, Cacao Hunters empezó a vender en Japón— Agronegocios

Los resultados de la Gira por Japón del gobierno estatal— Innovación Económica 

India — LAC

India to tap growing tractor market in Latin America— Financial Express

Procitrus: mandarinas peruanas llegarían este año a Japón y la India— Gestión 

India and Venezuelan Oil— Two Weeks Notice

ASEAN & Oceania — LAC

Perú y Chile unirán fuerzas para agroexportación al Asia— Expreso

Peru-Australia Free Trade Agreement will deliver investment and jobs for Australia  — Mirage News

Vietnam an ideal market for foreign fruit exporters— VietnamPlus

How long will India be Venezuela’s buyer of last resort?

阅读更多关于此新闻的文章，请点击链接: 印度何时会成为委内瑞拉最后的买家？

The US has increased pressure on the long-troubled government of Nicolás Maduro in Venezuela. While it continues to work with regional and global allies to recognize Juan Guaidó as interim president, the government of US President Donald Trump has unilaterally imposed sanctions on senior members of the Maduro regime, as well as the country’s most valuable asset, PDVSA.

The response from Latin America’s trading partners has been mixed. China has hewed to its support for Maduro, with the Foreign Ministry saying today that:

中方希望委内瑞拉保持和平稳定，呼吁遵守国际法和国际关系基本原则，反对外部势力干涉委内政。

The Chinese side hopes that Venezuela will maintain peace and stability, calls for the observance of international law and basic norms governing international relations, and opposes intervention by external forces in the internal affairs of Venezuela. 

Japan has taken a more cautious approach. In the wake of Juan Guiadó assuming the interim presidency, the government took a “vague,” noncommittal stance. However last week they shifted — after Maduro rejected calls for new elections — saying their support for Guaidó was “clear:”

"We express our clear support for interim President Guaido," Foreign Minister Taro Kono told a press conference. "Japan hopes a free and fair election will be held swiftly,"

China's perfunctory response has allowed India step in as a key player. With many partners stopping trade with PDVSA, in effect to be able to continue their US operations, India’s Reliance Industries and Nayara Energy (formerly known as Essar Oil) have significantly increased their purchases of Venezuela crude. With India still recognizing the Maduro government, that means the proceeds go to Maduro, and not to a US Treasury escrow account. Venezuelan Oil Minister and PDVSA head Manuel Quevedo flew to India two weeks ago to shore up that lifeline.

Our good friends at IPD Latin America tell us that between them the two companies loaded 5 cargos of Venezuelan crude (or the equivalent of 387,000 barrels per day) in the first 20 days of February. By comparison, the two firms were averaging a monthly load of 60,000 b/d prior to the PDVSA sanctions. With another 156 b/d loaded in February with no destination that IPD was able to confirm, that means that most of the 4-500,000 b/d that used to go from Venezuela to the US Gulf Coast is now headed to the Indian Ocean. Now as a big purchaser, you can bet they’re getting a good deal. 

So how long can they keep this going? Already the Indian government is advising one buyer of Venezuela crude “to move away from the U.S. banking and institutional mechanism.” And certainly Naraya — 49% owned by Rosneft — has to be well aware that Russia’s Gazprombank froze PDVSA’s accounts to avoid US sanction. IPD expects India and Venezuela to settle deals in rupees, RMB, or even rubles (what no Petro?).

India was one of the countries able gain an exemption last year from the US’ reimposed sanctions on Iran, by saying those sanctions would impact the port of Chabahar, a vital chokepoint for supporting the US in Afghanistan. As the only one of those countries with a refinery that can process Venezuelan heavy crude, will this be the lifeline Maduro needs?

Top Stories

2019年2月22日 阿根廷第21天：中国因素成阿根廷应对危机及发展的正能量— 21财经 

According to Argentina's Sub-secretary for International Financial Relations Félix Martín Soto is talking with the China Development Bank about financing two railway projects, China Exim on expanding the Cauchari II solar plant, as well as funding transmission power lines and gas pipeline projects. He says they’re hoping to bring in Silk Road Fund financing, as well.

王毅会见巴巴多斯外长沃尔科特-国家国际发展合作署— 国家国际发展合作署
China, Barbados will sign cooperation documents on jointly building the Belt and Road— Belt and Road Portal
Barbados, China agree to deepen cooperation— Barbados Today
México sí se puede subir a la nueva Ruta de la Seda— Manufactura
Barbados and China have announced the former is joining the Belt and Road Initiative (BRI). Mexico is trying to figure out if it can be next under the terms of NAFTA 2.0’s Article 32.10.

Huawei y Alibaba se suman a Amazon y analizan instalar sus data centers regionales en Chile— La Tercera
Subtel inicia roadshow para acelerar fibra óptica a Asia en medio de interés por data centers en Chile— La Tercera 
Huawei y Alibaba ponen los ojos en Chile para un posible data center: competirían codo a codo con Amazon— Fayer Wayer
The head of Chilean Sub-secretariat of Telecommunications (Subtel), Pamela Gidi, is headed to China, Korea, and Japan to promote the development of data centers related to the proposed fiber optic cable to connect Chile with Asia. Despite concerns raised by the “Five Eyes” intelligence agencies, Huawei is on Gidi’s agenda.

Huawei instalará fibra óptica submarina en BC— El Sol de México
In other Huawei news, the company has been awarded contract for a $14m fiber optic line between Topolobampo, Sinaloa and La Paz, capital of Baja California Sur. Unclear the impact this will have on strategic Casamigos reserves.

Sube la fiebre del litio en Argentina. Minera china se suma con inversion de US$ 180 millones— Diario Financiero
Auge del litio en Argentina: una minera china invertirá u$s180 millones en un salar salteño— iProfesional
Weeks after one company from an Autonomous Region of China invested in Bolivian lithium, another —  Tibet Summit Resources — has announced investment of $180m in the Diablillos lithium flats in Argentina.

Mourão diz que coordenará relações bilaterais com China, Rússia e Nigéria — Poder 360
Com Bolsonaro submisso a Trump, Mourão assume relação com Rússia e China— Brasil 24/7
Bolsonaro subordina o Brasil aos interesses do Governo Trump, por Dilma Rousseff— GGN
Brazilian Vice President Hamilton Mourão says that President Jair Bolsonaro has made him the point person on relations with China. As Mourão has been more conciliatory, this should bode well for the bilateral relationship. 

Cautious Capital: Chinese Development Finance in LAC, 2018— The Dialogue
Exclusive: China to Combine Africa, Latin America Investment Funds— Caixin
A note of caution on Chinese financing from the Inter-American Dialogue, whose annual report on its China-Latam Finance Database says official sector lending from China "was among the lowest on record” and “relatively low rates of Chinese lending to LAC governments are possible in the near-term.” Relatedly, in a cost-cutting measure China has announced that operations of the China-LAC Industrial Cooperation Fund will be merged with those of the China-Africa Fund for Industrial Cooperation.

Nuevo gobierno decidirá si es viable un TLC con China— El Salvador.com
El Salvador: productores a capacitación para vender café a China— El Economista 
Gobierno de Bukele deberá analizar TLC con China: Minec— Forbes México 
The new government of El Salvador under President Nayib Bukele is going to look into the viability of a Free Trade Agreement (FTA) with China.

BREAKING: Softbank avalia investimento no C6; Fonseca deixa seu papel executivo | Brazil Journal— Brazil Journal

Japan’s Softbank is looking away from Tesla and evaluating an investment in Brazilian bank start-up C6.

Preços da soja no Brasil ainda dependem das relações comerciais China x EUA para definir direção— Notícias Agrícolas
Guerra comercial: China perjudicada; Argentina, ¿favorecida?— Ámbito
Guerra comercial dos EUA à China se aproxima do fim— Folha 
China y EEUU, guerra de titanes por Latinoamérica— El Tiempo Latino
China sinaliza US$ 30 bi em compras dos EUA e ameaça exportações do Brasil— Globo
México: Nuevas reglas del T-MEC afectaría a China como principal proveedor de partes automotrices— América Economía 
T-MEC, China y comercio retoman reflectores— El Mañana
Ahead of President Trump’s planned extension of the tariff deadline next month, the trade war continues. 

Pese a incertidumbre automotriz, Toyota seguirá en México— 24 Horas
Posible arancel de EU derivaría en autos más caros: Toyota— El Economista 
Descarta Toyota México nerviosismo— Zócalo
Toyota recommits to manufacturing in Mexico, despite nerves about US protectionism.

China’s Latin American ambitions on display in Chile— FT
Our own Mike Derham talked with the FT’s Benedict Mander about how Chile is a focus of China's investment in Latin America:
“As China’s investing and trading relationships have matured and become more commercialised, Chile and China are a natural match,” said Mike Derham

China — LAC

Chinese company BYD to build surface metro in Salvador, Brazil— Macau Hub

Mayor mercado mayorista de frutas y verduras de China estrecha lazos con exportadores chilenos— El Economista América

Empresa China interesada en establecerse en el país— La Gente

Cooperación entre Atlántico y Jiangsu— El Heraldo

China allows corn, barley imports from Uruguay— Business Recorder

Crecen exportaciones de langostinos de Argentina a China— 20 Minutos

China construye la planta solar más grande de América Latina (y no estará en Chile)— El Mostrador

Exportações para a China devem crescer menos neste ano— Agência Brasil

Empresa china construirá hoteles en México bajo la firma Radisson— Expansión

Perú busca facilitar mecanismos aduaneros con China actualizando su TLC— Gestión

Perú busca actualización del TLC con China y Argentina— Infomercado

“China mantiene interés de importar productos colombianos del sector agropecuario”: Minagricultura— El Informador 

Política comercial china en América Latina: ¿Y Colombia?— La República

Comunidad indígena de Perú y minera china sin acuerdo en medio de bloqueo de vía transporte de cobre— América Economía 

Los productos chinos, cada vez más presentes en Latinoamérica— CNN

Korea — LAC

“Corea busca unirse como Estado Asociado a la Alianza del Pacífico”— El Peruano

Japan — LAC

Bolo de frutas típicas brasileiras faz sucesso no Japão— Gazeta do Povo

Mexican avocados seek expansion onto Japanese market— Fresh Plaza

Gigante japonés de la innovación digital cuenta su estrategia para la Argentina— iProUP

Japón contraataca— El Heraldo de México

Buscará MOS más inversión para Aguascalientes en visita a Japón— Newsweek

Indústria siderúrgica do Japão vê reação do Brasil ao desastre na barragem da Vale— O Petróleo

India — LAC

Argentina compartirá información geológica de litio con la India — Minería en línea 

Agriculture, energy and technology on Argentine president's agenda during India visit — The Times of India 

‘India, Argentina complement each other’— The Hindu

ASEAN & Oceania — LAC

Perú ratifica su acuerdo comercial con Australia— El Economista

Presidente argentino Macri dice en Vietnam que busca una asociación integral con ese país— El País

Palta peruana llegará este año a Corea, Filipinas, Malasia y Tailandia, prevé Senasa— Gestión