Once again China made headlines this week, announcing plans to expand its stake in mining, energy, and infrastructure across the Americas.
The biggest headlines were made by China’s Ambassador to Peru Jia Guide, who said: “In the next three years we see the coming of a wave of investment from China of $10b, in terms of energy and mines, telecommunications, construction, infrastructure, and finance.” ("未来3年中资企业将形成100亿美元对秘新投资，投资领域将从传统能矿业扩大到交通通信、金融等广泛领域”)
His remarks were made at the launch of the expansion of the Toromocho copper mine by Chinalco (中国将在秘鲁投资多个矿业项目 Toromocho铜矿将增产45%). The expansion is expected to increase Toromocho's copper output by 45% percent by 2020, to an annual production of over $2b. To facilitate increased exports from Peru, COSCO Shipping announced (中国将在秘鲁投资多个矿产项目) it is teaming up with Peruvian miner Volcan Minera to build and operate the Chancay port.
Amb Jia’s $10b is going to several projects that Chinese analysts are evaluating (是什么让首钢、中铝、五矿等纷纷在秘鲁投资开矿？都赚钱了吗？):
$1.3b by Chinalco the expansion of the Toromocho copper mine by Chinalco;
$2b by COSCO to build and operate the Chancay port project;
$2.5b by the Peruvian subsidiary of Jinzhao Mining to develop the Pampa de Pongo iron mine project; and
$1.3b by Shougang Hierro Peru to expand the Marcona mine.
Most eyebrow-raising was Amb Jia’s announcement that China Railway Engineering Corp (CREC) plans to build a port in Ilo. It was a surprise in particular to Peruvian National Port Authority head Edgar Patino, who said he was unaware of any proposal by CREC, and that a potential expansion of the existing Ilo port would be awarded through a public auction. Patino says the expansion of Ilo is only necessary if the troubled bi-oceanic railway pushed by China moves forward. New Peruvian President Martín Vizcarra will meet with Bolivian President Evo Morales next week to discuss.
Observers have long noted that the headline numbers in announcements don’t always match up with reality. The Ilo port underlines the problem of a divergence in priorities on infrastructure between China and Latin America. While CREC pushes a second port project for a rail line Brazil doesn’t support, Peruvian Central Bank Governor (BCRP) Renzo Rossini says Peru should prioritize restarting stalled mining projects like Southern Copper’s Tía María, Newmont’s Conga, and Zijin Mining Group’s Rio Blanco.
Ilo could be the next Manta, a big infrastructure announcement who’s ship never comes in.
China State Grid investirá US $ 38 bilhões no setor de energia no Brasil — O Petróleo
China's State Grid to Invest $38 Billion in Brazil Power Sector — US News & World Report
China's State Grid to invest $38 bln in Brazil over 5 years — Nasdaq
China con millonaria inversión en energía en Brasil expande su potencia en América Latina — Energía Limpia XXI
China's State Grid will invest $38b in the Brazilian power sector over the next five years, according to Brazil unit VP Qu Yang. The R$140b investment will be in both transmission and generation, with the transmission investment — in ultra-high voltage transmission technology — alone totaling R$90b ($23b). On the generation side, State Grid is looking at solar and wind power in the northeastern states of Bahia and Rio Grande do Norte, as well as in the south of the country.
阿根廷称在与中国讨论延长货币互换协议 — Reuters
Buscan ampliar el swap con China para fortalecer el paquete con multilaterales — El Cronista
Argentina woos China in hunt for support package — FT
Argentina and China in talks to extend their currency exchanges — SCMP
In its ongoing efforts to stem a full-on currency crisis, Argentina has been wooing China directly to participate in a support package led by the IMF. To sweeten the deal, Argentina is looking to expand a RMB 70b ($11.3b) swap line between the People’s Bank of China (PBoC) and the Central Bank of Argentina (BCRA) originally set up in July 2015. Internationalization of the Renminbi has recently become a renewed priority of Chinese policy-makers.
JD Fresh Goes All Out to Construct a Whole Industry Chain — Produce Report
Chinese tech behemoth JD.com has announced a program through its JD Fresh subsidiary to integrate the whole agricultural supply chain, starting with five farms it has established overseas, including one in Chile. The announcement comes ahead of its "618" shopping day — presumably a competitor to Alibaba’s Single’s Day sales — at which it will sell Chilean king crab among other foodstuffs.
Prevén en Canal de Panamá que República de Corea, China y Japón serán los primeros usuarios de GNL por vía — Xinhua
Our friends in Panama say that the third set of locks would be a success in line with expectations, but has been a massive success thanks to the unexpected flow of liquid natural gas (LNG) from the US gulf coast to Asia. Panama Canal Administrator Jorge Quijano says that he expects South Korea, China, and Japan to be the top three recipients of LNG through the canal soon, pushing Mexico to fourth.
A&B First In OECS To Sign Chinese Initiative — Antigua Observer
Antigua and Barbuda joins Trinidad and Tobago in signing a Memorandum of Understanding (MOU) with China on bilateral cooperation on the Belt and Road Initiative.
China — LAC
China cierra el grifo del crédito a Venezuela — El Carabobeño
China cierra el grifo del crédito a Venezuela — El País
Las refinerías independientes de China buscan alternativas al crudo venezolano — La Patilla
How Venezuela’s Implosion – and Reconstruction – Will Transform South America — Americas Quarterly
Jorge Heine: "Yo no veo a China en posición de dar nuevos recursos a Venezuela” — NTN 24
China and Venezuela’s relationship continues to creak under the strains of Venezuela’s implosion. Local newspaper El Carabobeño notes reports that China policy banks have stopped lending to Venezuela, and reproduce our friend Margaret Myer’s research to that effect. PDVSA has let CNPC and seven other international clients know that it will not be able to fulfill its crude oil obligations this month, leaving independent Chinese refiners scrambling for other sources, such as Colombia, Mexico, and Canada. But as our friend Oliver Stuenkel notes in the Americas Quarterly, it won’t be so easy for China to get free: "Any future Venezuelan government would probably need to sign long-term deals with both the IMF and Chinese banks to initiate the lengthy process of reconstruction."
南美矿企投资增产锂资源 瞄准中国市场 — Huanqiu
China está a punto de apoderarse de la mitad del litio mundial para asegurar su futuro eléctrico — El Economista
China, a punto de adueñarse de la mitad del litio mundial (clave para los autos eléctricos) — Estrategia y Negocios
Empresarios chinos buscan yacimientos de cobre y oro en el norte del país — Economía y Negocios
Profiles of the impact Chinese investment is having on copper, gold, and lithium mining in Chile. In addition to the ongoing Tianqi-SQM saga, China Chile Minerals’ plans to export copper and gold from Antofagasta to China is discussed.
河南与拉美和加勒比地区国家合作交流谱华章 — China Daily
Ambassadors from Venezuela, Uruguay, Cuba, Panama, Peru, Mexico, Argentina, among others, visited Henan Province.
China coquetea con México para aumentar relación y enfrentar a EU — El Semanario
China sigue siendo la opción ante un posible acuerdo separado del TLCAN — El Empresario
Comercio entre México y China ronda los 87 mil MDD: Karla Loyo — Imagen Radio
China, opción para México ante nueva postura de Trump — Aristegui Noticias
México requiere despertar otros mercados — El Debate
China and Mexico continue to play footsie as the former looks to challenge the US and the latter looks for options in case NAFTA blows up. However, of the $87b in bilateral trade, $74b is Chinese exports to Mexico.
Exportaciones de arándanos a China crecieron más de 1.200% — El Comercio
Perú incrementa exportaciones un 24% en abril — Macro Trade News
Peruvian blues gain ground in China — Fruit Net
Comercio entre el Perú y China — El Peruano
In April, Peru’s exports were up 24% on the year, driven by a 39% increase in exports to China. Non-commodity agriculture stood out in particular, with blueberry exports to China increasing 1200% to make China Peru’s fifth-biggest blueberry market only two years after opening up.
Camposol and Win-Chain, strategic cooperation to export more Peruvian products to China — Fresh Plaza
Camposol — the largest agricultural company in Peru — has signed a deal with Alibaba produce subsidiary Yiguo Win-chain to distribute avocados and blueberries in China.
China’s Three Gorges builder buys Brazilian water company — Global Construction Review
China Gezhouba Group Co. (CGGC) has closed on its acquisition of the Sistema Produtor São Lourenço (SPSL) water supply company in São Paulo.
Foreign investment floods Colombia’s Pacific — Open Democracy
A focus on Chinese investment in Colombia’s Pacific coast, including Capital Airports Holdings Company's (CAH) — subsidiary of Civil Aviation Administration of China (CAAC) — plans to invest $2m modernising and expanding the airport facilities of Quibdó.
Minera china Shandong Gold busca invertir en el Perú — Portal Minero
San Juan quiere que Barrick le venda Pascua Lama a la china Shandong Gold — EconoJournal
The government of the province of San Juan in Argentina sees the potential of Shandong Gold as an investor in the troubled Pascua Lima mine alongside Canada’s Barrick Gold. Shandong bought half of the Veladero mine from Barrick last year. And it’s not just Argentina — Shandong Gold is also looking at Peru to expand its resources of gold, copper, and zinc.
China’s Effect on World Cherry Production — Growing Produce
Chinese cherry consumption has increased 1,848% in the 15 years to 2016; that year, Chile provided 82% of those cherries.
Viagens à China e Rússia renderam protocolos com duas empresas — Jornal da Manhã
Rússia e China podem apoiar investimentos em energia e logística — Diário do Comércio
The Brazilian state of Minas Gerais is hoping to attract Chinese investment in energy, os says Uberaba mayor Paulo Piau.
China y los temas globales — El Heraldo de México
La ruta de las Américas — La Vanguardia
Iniciativa de Franja y Ruta es puerta a apertura y desarrollo para América Latina, según expertos — Xinhua
Expertos chinos destacan importancia de concepto de beneficio mutuo para profundizar en la cooperación sino-latinoamericana — Xinhua
The Belt and Road Initiative and Latin America’s role in it continues to be an object of fascination.
New Detail Study: Avocado Market including key players Colombia, Peru — Trade Chronicle 24
HTF Market Insight has a new report outlining the potential of the Chinese avocado market to exporters from countries such as Brazil, Chile, Colombia, Guatemala, Mexico, and Peru.
YOFC de China ingresa con fibra óptica y cable al Perú — La República
Yangzte Fiber Optic and Cable Company (YOFC) has announced it is going to build a fiber and cable manufacturing hub in Peru for the Latin American market. At the ned of last year ProInversión awarded it an operating license in Ica and Amazonas regions, and the company is looking at the Colombian, Chilean, and Mexican markets.
Jujuy firma convenio con TV Pública China y TV Pública Argentina — Jujuy al día
Jujuy’s Ministry of Culture and Tourism has signed an MOU with Radio TV Guizhou.
Carli Bay fishermen living on cutlass fish — Trinidad and Tobago Newsday
Trinidadian fishers are benefiting from Chinese demand for cutlass fish to buoy market prices.
Brazil must urgently learn how to operate in a more China-centric world — Post Western World
Brasil cada vez mais interessado nas relações comerciais com a China — DN
Oliver Stuenkel warns that Brazil needs to navigate a multipolar world. Vice-Minister for Commerce and Services Douglas Finardi Ferreira says: “sure."
El plan nuclear se queda sin energía — BAE Negocios
Unclear what exactly is going on with the Atucha III nuclear station.
TAP lança operação de carga para ligar Portugal, China e Brasil — Dinheiro Vivo|
Portugal’s national airline TAP is launching cargo flights connecting Brazil and China via Portugal.
Metal extranjero podría inundar Colombia por la guerra comercial — El Espectador
Guerra do aço: ES vai enfrentar a China na disputa por novos mercados — Gazeta Online
Dispatches from the steel wars: Colombia and Brazil’s Espirito Santo state, where the local steel industry feels it has to take on China in new markets in the wake of quotas agreed to with the US.
Brasil só tem a perder com a crise entre China e EUA, diz embaixador — Valor
Brazilian Ambassador to Beijing Marcos Caramuru sees trouble ahead in the trade wars.
Rampant bicycle theft puts the brakes on China's Mobike foray in Mexico City — The Japan Times
C’mon guys — that’s not cool.
Quién es China Railway Group, la gigante asiática socia de Sigdo Koppers tras el tren Valparaíso-Santiago — Economía y Negocios
A profile of China Railway Group, pursuing a $1.6b Santiago-Valparaíso high speed rail line with local firm Sigdo Koppers (SK).
La jugada de China en América Latina — La Tercera
Algunas observaciones sobre un eventual TLC con China — Hoy Digital
Taiwan to loan ally Haiti $150 million amid China onslaught — Orlando Sentinel
The diplomatic recognition tango across the Taiwan straights continues. Former Chilean Ambassador to China Jorge Heine outlines China’s plans for the region. Dominican columnist Eduardo Klinger outlines the difficulties for his country of negotiating a good free trade agreement with China. And, trying to head off the next domino to fall, Taiwan has announced plans to lend $150m to Haiti for infrastructure development.
Jamaica Losing Millions Due To Industrial Relations Practices Of Some Chinese Firms - Trade Unionist — RJR News
Jamaica Labour Ministry meets with China Harbour, Sinopharm over protesting workers — Stabroek News
Jamaican workers went on strike for two days the past week to protest conditions at China Harbour Engineering Company’s (CHEC) Mandela Highway project on the island. The Labor Ministry is looking into accusations of unsafe work environments and that CHEC is evading taxes on salaries.
Brazil's presidential frontrunner urges review of ties with China — Nikkei Asian Review
Brazil front-runner softens view on Chinese investment — Reuters
Is Jair going soft? Tropical Trump and Brazilian presidential front-runner Jair Bolsonaro walks back his trash-talking of China: “I don’t want any country buying up Brazil, but we will do business with all countries and China is an exceptional partner,” he now says.
Llegada de turistas asiáticos a Chile aumenta 22,9% en un año — Economía y Negocios
Chinese tourists to Chile are up 23% on the year.
Korea — LAC
En dos años se prevé firmar acuerdos con Estados Unidos, México y otros — El Universo
Ecuador’s new government is making up for lost time, looking too sign trade deals with South Korea, Mexico, and the United States in the next two years.
Corea del Sur, un nuevo destino para la cebada argentina — Clarín
South Korea is a new destination for Argentine barley.
Japan — LAC
La japonesa MINO producirá autopartes de aluminio en León — Mexico Industry News
Empresa japonesa fabricará productos de aluminio en Guanajuato — Mexico Industry News
MINO Industry México has announced it will invest $40m in an aluminum autoparts factory in Guanajuato.
Aeroméxico enfila hacia Japón — Caribbean Digital News
Aeroméxico has signed a codeshare agreement with Japan Airlines, to start in October.
India — LAC
LATINDIA International Seminar: Future of cooperation in India and Latin America — Devdiscourse
Argentina’s Foreign Affairs Ministry held a "LATINDIA International Seminar” with the Inter-American Development Bank (today!).
GCC — LAC
Qatar acquires stake in Exxon’s Argentina shale oil and gas — Arab News
State-owned Qatar Petroleum will acquire 30% of ExxonMobil Exploration Argentina and Mobil Argentina, E&P firms in the Vaca Muerta unconventional shale oil and gas in Neuquén Province.
ASEAN & Oceania — LAC
Singapore crypto exchange Huobi sets foot in Brazil — Coin Geek
The Beijing-born cryptocurrency exchange has been marketing its platform in Brazil, and is also hiring staff for its new São Paulo offices.
Aguacateros mexicanos voltean hacia Australia y Nueva Zelanda — Forbes México
With the coming of the Trans-Pacific Partnership, Mexican avocado farmers are eying the Australian and New Zealand markets.