Chinese FDI in Latam Continues to Surge

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The Trump Administration has successfully put the China-US investment relationship in a state of “Arrested Development,” according to the Rhodium Group. So much so that, Chinese foreign direct investment (FDI) in the US is down 92% so far in 2018, to $1.8b in greenfield and mergers and acquisitions (M&A) deals. Things have gotten so bad that even Alibaba, whose chief Jack Ma famously pledged would create 1 million jobs in the US, has announced it will scale back investment plans.

The current US government has successfully stymied the flow of FDI into the US, but Chinese investment in Latin American has been surging in 2018. ECLAC was set to unveil its latest FDI numbers today — until someone reminded them they were going to unveil them under the thundering roar of what turned out to be Colombia making it to the Group of 16.

While we wait for them to release the numbers now on World Cup-free July 5th, we looked back over the course of the year to see just how strong the deal flow had been.

And it’s been strong. Through the end of there first half of the year Chinese companies in the region have unveiled $15.3b in investments, according to Novam Portam’s calculations. That puts Chinese FDI in Latin America on course to increase 73% this year over 2017.

China-Latam FDI.png

While traditional sectors such as energy, natural resources, and infrastructure have dominated activity so far this year, new sectors such as health, technology, and financial services are becoming a larger part of the deal flow.

Kevin Gallagher and Rebecca Ray at Boston University’s Global Development Policy Center say that Chinese firms invested $22.1b last year: $4.4b in greenfield projects, and a record $17.7b on M&A. So if Chinese corporate greenfield FDI and M&A continues in the second half of the year at the same pace, the year-end figure $30.3b would represent a 73% gain. According to Moody’s this week, it’s a trend that is set to continue: "Chinese investment in Latin America’s infrastructure is intensifying, which will support the region’s infrastructure developments."

The above list may be overly optimistic — the Chilean government is looking to block Tianqi’s acquisition of SQM, for example — but it could turn out to be overly pessimistic. It doesn't reflect announcements of investment programs that have been rolled out over the past six months, such as:

So while Chinese investment in the US may be on hold, Chinese investment in Latin America is just getting started.

Top Stories

Ya ni las gorras van a venir de China: AMLO — El Financiero
Andrés Manuel López Obrador (AMLO) is the frontrunner and presumptive winner of Sunday’s Mexican presidential election. As our friend Boz puts it succinctly: “AMLO is going to win. Then what?" At his last event of the campaign — in what may be a taste of things to come — he lashed out at products imported from Asia:

“The caps and shoes they’re wearing come from Asia — that is impossible! It is not possible for them to be made in Asia. In Mexico we can do that: make shoes, clothes, and caps; produce beans, meat, milk, and wood. Mexico has all the resources." 

Will there be two protectionists in North America? Is the recent warming of business between China and Mexico about to come to a screeching halt?

México: Didi Chuxing expande su pelea contra Uber a Monterrey y Guadalajara, ofreciéndole 12 mil pesos semanales a sus conductores — Fayer Wayer
Competencia china de Uber promete a regios 12,000 pesos semanales — Forbes México
Didi is expanding its ride-sharing to new cities in Mexico: Monterrey and Guadalajara. It will be offering drivers MXN12,000 ($600) a week to get them to sign up.

CNBV autorizó operaciones de Bank of China México — El Economista
Avalan que opere Bank of China en México — El Universal
Mexican banking supervisor Comisión Nacional Bancaria y de Valores (CNBV) has given Bank of China the green light to begin lending in Mexico. Bank of China will start by lending to Chinese firms in Mexico, their suppliers, and Mexican firms doing business with China.

China, EE.UU. y Japón explicaron el 56% de las exportaciones chilenas a mayo — Estrategia
44% of Chile’s exports go to Asia, with China making up the lion’s share (38%).

China — LAC

Peru: Distance is the biggest barrier to increased shipments of mango to Asia — Fresh Plaza
General manager of the Association of Producers and Exporters of Peruvian Mango (APEM) Juan Carlos Rivera says that the distance to export to Asia makes maritime shipments unfeasible, so mangos get sent by air.

China and Latin America: A Complex Reality — Brink News
Carnegie-Tsinghua’s Matt Ferchen provides a succinct overview of China-Latin America relations:

Both ... must confront the legacy of past deals gone wrong and attempt to move beyond commodity-based trade, investment and financing ties to forge more infrastructure cooperation. This challenge is complicated by China’s still nascent efforts at understanding the region’s changing economic and political trajectory.

Gerente general de Maersk Container Industry, Ronnie B. Jensen: “La operación en Chile demostró no ser competitiva en los mercados globales” — La Tercera
Maersk is closing its container factory in Chile due to over-supply in the global market for containers and that production in Chile cannot compete on a cost basis with that from China.

Temen que un acuerdo con China profundice el déficit comercial — La Nación
Nin Novoa: "No seremos los sepultureros del Mercosur” — El Pais Uruguay
Mercosur continues debating whether to pursue a Free Trade Agreement with China, with concerns about its impact on the trade deficit. Following speculation that Uruguay would go it alone to get an FTA with China, Foreign Minister Rodolfo Nin Novoa says otherwise: 

“If the Free Trade Agreement between Uruguay and China means the breaking up of Mercosur, we will not be the gravediggers, we will not give it the death certificate — this government will not do it."

El plan que busca convertir a Chile en el segundo país con más buses eléctricos del mundo — La Tercera
Chile’s Transantiago bus system is going to implement “electrocorridors” for electric buses by the end of the year, in a project expected to cost up to $30m. 200 BYD and Yutong buses will be circulating by the end of the year.

Las relaciones con RD se inician tras el relanzamiento de los vínculos de China con América Latina y el Caribe — El Caribe
ENTREVISTA: Aspiramos a formar parte de la Franja y la Ruta, dice ministro de Economía dominicano — Xinhua
Empresas chinas manifiestan a ministro interés por comerciar con RD — El Nuevo Diario
Dominican Republic Finance Minister Isidoro Santana visited Beijing this week, looking to have his country join the Belt and Road Initiative (BRI).

Evo elogió cooperación incondicional de China con América Latina — El Ciudadano
Morales defiende lazos con China frente a EEUU ‘enemigo de la paz’ — HispanTV
Coming off his visit to Beijing last week, Evo sees China as a better partner than the US.

Factible un TLC México-China: contadores públicos — Milenio
The Mexican Accountant's Institute says that in the face of trade uncertainty with the US, an FTA with China is certainly feasible.

México alista exportación de plátano a China: Sagarpa — TV Azteca
A delegation from China’s General Customs Administration and Health Ministry visited Tabasco this week, inspecting plantain plantations ahead of approving them for importation.

The middling passage — TT Newsday
Scathing editorial on the ill-starred Galleon's Passage: 

In a startling reversal, it was revealed that the Galleons Passage would leave the Damex Shipyard in Cuba without promised retrofitting being done. The reason? The altogether unimpressive discovery that critical equipment and materials could not be sent to Cuba because of international embargoes against the socialist Caribbean nation.

Na guerra comercial, China vê Brasil como parceiro estratégico para obter alimentos — Gazeta do Povo
China mira Brasil como parceiro estratégico em meio a guerra global — Folha
China Targets Brazil as Strategic Partner in the Midst of Global Trade War — Folha
Is US President Donald Trump’s coming trade war an opportunity for Brazil to become China’s breadbasket? Folha seems to think so.

Why China can’t count on Brazil to fill soybean gap in US trade rift — South China Morning Post
Diplomacia de EE. UU. y China, con paso firme — El Colombiano
Las oportunidades de Colombia en guerra comercial EE. UU. - China — Portafolio
¿Por qué los nuevos aranceles de Trump no afectan tanto a Colombia? — Dinero
El Dólar al mayoreo baja de los 20 pesos — Expansión
Disputa entre China e EUA pode afetar exportações do Brasil, diz MDIC — Istoé
EUA X China: consumidor brasileiro pode pagar a conta — R7
"Mientras los impactos sean acotados en China, en Chile también serán acotados” — Pauta
Fed asegura que las amenaza son para China, no para México — El Sol del Centro
But there are lots of nerves about the coming trade war, and how it won’t be all roses for Latin America.    

Trump's original sin on trade — Axios
Washington conventional wisdom catches on:

TPP was actually signed in Chile, and included Mexico and Peru. All three countries have Pacific-facing coasts. Trump's TPP withdrawal has made these countries less reliant on trade with the U.S., creating an opening for China to increase its investment in Latin America. This has arguably made it harder to renegotiate NAFTA with Mexico, and given Latin America less reason to cooperate with the U.S. on other trade matters.

Chile, China y el “milagro” del Grafeno — Cooperativa

A Chilean observer worried that mass production of graphene will put his country out of the copper and lithium business. In theory...

El desarrollo de China y las oportunidades para Chile — Diario Financiero

Chinese ambassador to Chile Xu Bu writes how his country’s development give Chile opportunities, as well.

China Goes Avocado-crazy — WoowBow 哇包
Chile: auge y problemas en la producción de aguacates — Marco Trade News
China demand for avocados is booming, and doesn’t look to slow down any time soon. But that’s creating a problem in Chile where increased production is straining local water resources.

Ojo con la seducción china de las élites latinoamericanas — El Tiempo
Juan Pablo Cardenal warns that China is building an asymmetrical relationship (in its favor) with partners in Latin America, and using “personal diplomacy” to mask it.

China promoverá más cooperación con Perú en obras de infraestructura — Agencia Andina
China’s powerful National Development and Reform Commission (NDRC) is pushing for more infrastructure work by Chinese firms in Peru under the Belt and Road Initiative rubric.

Las relaciones de amistad de Panamá y la República Popular China — La Prensa
La ‘letra chiquita' de la inversión china en Panamá — La Estrella de Panamá
Chinese inroads in Panama: Transport hubs and BRI in the Americas — Global Americans
Looks at how China and Panama are doing, a year into their diplomatic relationship. Jorge Heine and Elías Castillo look on the bright side, but Panama’s La Estrella echoes what we hear - Panamanian businesses feel they have to move cautiously, and read the fine print. 

O que falta para o Brasil ser a China em tecnologias financeiras — Info Money
A look at what Brazil needs to do to “be more like China” when it comes to digital financial services. Short answer: the Brazilian Central Bank is making smart moves, but federal government regulatory and legal constraints are still holding it back.

Grupo Maco recibe importante visita desde China — Publimetro
Lifan Motors global head of marketing Luo Zhen came through Chile to meet with their local representative, Grupo Maco.

4,500 jobs to be created at new Phoenix Park — Trinidad Guardian
China belts TT — TT Newsday
New details on the MOUs signed between Trinidad and China last week. The Phoenix Park industrial development will require 60% local labor and 50% local content.

Mandatario de China expresó lo mejor para gobierno de Vizcarra en cita con embajador — Canal N
Peruvian Ambassador Luis Quesada Incháustegui presented his credentials to Chinese President Xi Jinping.

UNAM, puente para fortalecer las relaciones México-China — 20 Minutos
An article about how top Mexican university UNAM is expanding its presence in China to strengthen bilateral relations.

China's deals in Sri Lanka are a lesson for other countries taking Chinese investment and loans — Bloggings by boz
Our friend Boz highlights the NYT article about China’s relationship with Sri Lanka to raise a point we have discussed frequently with him: 

"Latin America and the Caribbean should take note of what happened in Sri Lanka. There is a high probability that China will use its loans and investments in a similar way in the coming decade to take control of other pieces of key infrastructure."

The Blocs building China’s Belt and Road — AJOT
Terry Gidlow, head of port agency WaterFront pens a detailed piece about how the key to the success of the BRI in Latin America will be the quality of the region’s ports.

O século 21 será chinês? — Outras Mídias
A Marxist reading of the rise of China. Really.

Korea — LAC

Samsung Pay enhances partnership with banks in Brazil — Pulse News Korea
Itaú Unibanco becomes the 12th bank in the country to accept Samsung Pay along with Bradesco, Banco do Brasil, Santander Caixa, and others. Google Pay works with eight partner banks in Brazil, and Apple Pay with only one — Itaú.

Destacan oportunidad de negocio para la miel chilena en Corea del Sur — Estrategia
How sweet it could be. ProChile is pushing for more Chilean honey producers to take advantage of the FTA with Korea to export more honey.

Japan — LAC

Japan's Sumitomo says to buy 5-pct stake in Peruvian gold mine — Reuters
Sumitomo has bought a 5% stake in Peru’s Yanacocha gold mine in Peru from Newmont Mining and Buenaventura for $48m.

India — LAC

India's eMudhra Expands To Latin American Market — CXO Today
Digital identity and transaction management firm eMudhra has partnered with partnered with Colombia’s Diplogrados Ltda to enter the Latin America education sector to curb diploma fraud by completely digitizing the diploma issuance process.

GCC — LAC

UAE Consul-General In New York Attends Opening Of Grenada's New Parliament Building — Urdu Point
Grenada inaugurated a new parliament building, built with funds from the United Arab Emirates and Mexico. The old building was destroyed by Hurricane Ivan in September 2004.

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Can Chinese Fintech Jump-start Latin America Digital Finance?

阅读更多关于此新闻的文章,请点击链接: 中国金融科技可否帮助拉美渡过难关?

This week, ICBC unveiled EPay, an app that will allow clients in Hong Kong to make electronic payments. The worlds largest bank by assets under management joins Alipay, Union Pay, and WeChat Pay in a very mature, and already-crowded, $15t Chinese e-payments market. The Chinese digital financial services (DFS) marketplace is dominated by Alibaba’s Ant Financial  — which now has greater valuation than Goldman Sachs — with Tencent’s WeChat Pay hot on its heels, leveraging WeChat’s ubiquity.

In striking comparison, the Latin American mobile payments sector has struggled to get off the ground, despite the potential market. 70% of Latin Americans do not have a bank account, but only 15m of that 340m market have a mobile money account. Platforms like Digicel’s MonCash in Haiti and Giros Tigo in Paraguay are the exception, not the rule. Even Brazil’s PagSeguro — one of the few e-commerce success stories in the region — saw its stock drop 13% this week on concerns that traditional merchant acquirers are encroaching. You’d think that ICBC — with a significant retail presence in Argentina — would be the perfect supporter of a DFS program in the region. But Chinese tech and financial firms have failed  to capitalize on the opportunity along with their Latin American counterparts.

The hurdles to DFS in Latin America are not the technology. While the value of QR codes versus near-field communications (NFC) is not a settled discussion, WhatsApp alone proves that Latin America is not afraid to adopt technology when it makes things easier. And economic struggles in Argentina and Venezuela have spurred bitcoin in those countries (and we won’t touch on the Petro). But as we tell our clients looking at the space: the rule of thumb is that successful digital financial services programs are 80% operations and 20% technology.

Latin America lags in fintech in large part because the incumbent banks have long seen it as a threat, not an opportunity. Miguel Arce of Pagos Digitales Peruanos — the company behind Peru’s BIM mobile wallet — notes that banks are vital to fintech, allowing users to get cash into and out of the mobile money system. Support from the Asociación de Bancos del Perú (ASBANC) will be key to whether BIM takes off as an alternative to cash.

The fragmentation of DFS clients across thirty-something jurisdictions doesn’t help, either. The Spanish incumbents BBVA and Santander could be region-wide champions of digital payments, but haven’t successfully launched a product. Where they have acquired — such as with BBVA’s acquisition of the US’ Simple in 2014 — they have struggled. Itaú, with a franchise in Argentina, Chile, and Mexico beyond its home Brazil, is the only regional champion likely, but hasn’t pushed into the space. The region's financial institutions may have already missed their chance. It may be up to one of the homegrown tech firms, such as Mercado Libre, to address the issue.

With Ant Financial and Tencent locked in pitched battle domestically, Latin America represents up to a half a billion potential new users, with higher income than at home. Policymakers in Beijing are pushing them to make serving Chinese nationals in Latin America a priority, but they are now eyeing the underserved financial clients in the region. Ant Financial had been eyeing MoneyGram as an entrée into Mexico (and the US) before the Trump administration put the kibosh on it, and subsequently entered into a partnership with Openpay. It catches up with Samsung Pay, which launched in Mexico last year.

But while the M&A strategy has served Chinese tech firms in the past, across a fragmented Latin America market it won’t be a one-size-fits-all solution. Firms will need boots on the ground to handle regulatory issues, operations, as well as an effective sales team to drive adoption. While they may see Latin America as an untouched market for fintech, Chinese tech firms may discover that the “capital light” approach that they have used in the past won’t be sufficient.

Top Stories

习近平同玻利维亚总统会谈:在“一带一路”框架内加强发展战略对接 - 中国一带一路网 — Belt and Road Portal
Morales cumple reuniones con sectores aeroespacial, de transporte y petroquímica en China — La Razón
Visita de Morales a China inyectará nuevos impulsos al desarrollo de relaciones sino-bolivianas, dice embajador chino — Xinhua
China convierte a Bolivia en socio estratégico y se abre a su quinoa y café — 14 y Medio
Texto íntegro de la declaración conjunta entre China y Bolivia sobre el establecimiento de la asociación estratégica — Xinhua
Bolivian President Evo Morales stopped in Beijing on his way home from the World Cup, where he and Chinese President Xi Jinping signed deals brining Bolivia into the Belt and Road Initiative and a line of credit from China EXIM for urban security, among other items.

Gigante eléctrica china concreta ingreso a Chile con compra de central hidro en el Biobío — Diario Financiero
Gigante asiático compra proyecto hidroeléctrico en la zona de Alto Bío Bío — Bio Bio
China Three Gorges Corporation has bought the proposed $240m, 90MW Rucalhue hydroelectric project in the Bío Bío region of Chile.

China scores in Latin America — FT
China amplia presença na AL, do setor financeiro ao futebol — Valor
The FT’s JP Rathbone referenced our World Cup piece last week in his weekly LatAm Viva column:
Although China is not a football superpower, the beautiful game is known to be President Xi Jinping’s favourite sport. Indeed, the central government has set out targets for the national team to become Asia’s best by 2030, and to win a World Cup by 2050, according to Novam Portam, a Sino-Latin consultancy. To foster that rise, Beijing has spent lavishly on foreign football players, especially Latin American stars. In 2012, Chinese clubs spent $51m on transfers. By 2016, that spending has rocketed to $451m.

China — LAC

China's State Power to bid for Brazil hydroelectric dam: sources — Reuters
China’s State Power Investment Corp is going to submit a bid for Brazil’s fourth-largest hydroelectric dam, the 3.6GW Santo Antonio, as soon as next month.

MoU signed for US$104m industrial park — T&T Guardian
China team in T&T to sign MoUs — T&T Guardian
Chinese delegation visits La Brea pitch lake — T&T Newsday
Young: Chinese delegation arriving Saturday — Loop TT
Beijing Construction Engineering Group (BCEG) and Trinidad’s Evolving Tecknologies and Enterprise Development Company Limited (eTecK) have signed an MOU for development of the $104m Phonenix Park Industrial Estate. BCEG has also signed a distribution agreement with Lake Asphalt of TT (LATT). Trinidad and Tobago also hope the five Chinese banks will establish operations in the country.

Ingreso de Tianqi a SQM: Futura venta de litio en Chile le da luz verde a FNE para investigar — Economía y Negocios
Fiscalía Nacional Económica inicia investigación por venta del 24% de SQM a empresa china — Bio Bio Chile
Regulador chileno investiga ingreso de china Tianqi a minera SQM — América Economía
Chile antitrust regulator to probe Tianqi purchase of SQM stake — Reuters
Chilean competition watchdog the National Economic Prosecutor (FNE) has begun an investigation in Tianqi Lithium’s acquisition of of 24% of lithium miner SQM, following economic development unit CORFO’s blocking of the deal earlier this year.

Governo trabalha para evitar que embargo chinês ao frango se torne definitivo — Istoé
Governo trabalha com setor privado para suspender embargo chinês a frango brasileiro, diz ministro — DCI
The Brazilian government is looking to regain access to the Chinese chicken market for its exporters following last week’s antidumping tariffs. The move is seen as being unrelated to the US-China trade war.

Chanceleres da Argentina e Uruguai querem acordo de livre comércio com a China — O Globo
Mercosul e China devem retomar negociações para acordo comercial — O Globo
Mercosur: Cancilleres apuntan a China en el nuevo semestre del bloque — Ultima Hora
Sin Macri, Mercosur discute el grado de influencia china que permite la región — El Cronista
Con el acuerdo con la Unión Europea paralizado, Jorge Faurie destacó las relaciones con China — Clarín
Los países del Mercosur miran hacia China ante el retraso de la firma del acuerdo con la UE — Expansión
Mercosur busca consenso para acercarse a China y se muestra preocupada por demora en acuerdo con la UE — América Economía
Macri apuesta con Vázquez por acuerdos de Mercosur con China, Japón o Canadá — La Vanguardia
Uruguay se beneficiará de TLC con China según informe — Xinhua
China: la mejor opción frente a los condicionamientos del FMI — Bae Negocios
With the slowdown of free trade agreement (FTA) discussions with the European Union (and with the Canada EU FTA held in the balance by European populist movements), Argentina and Uruguay are pushing Mercosur to pursue FTAs with China, Japan, and Canada. Let’s see what Brazil says.

EUA e China travam guerra comercial, e Brasil só tem a perder com ela — Veja
No embate entre EUA e China, Brasil só tem a perder, diz executivo — Exame
Guerra comercial entre EUA e China piora cenário econômico para Brasil — Valor
Brasil perde com disputa comercial de EUA e China — Folha
La guerra comercial China-EEUU se traduce en pérdidas en las bolsas de Latinoamérica — el Economista
Peso cae por tensiones comerciales entre EU y China — El Sol de México
3 efectos en México por la guerra arancelaria de EU y China — Expansión
México enfrenta riesgos, pero puede ganar con disputa entre EU y China — El Economista
Se asoma guerra comercial entre Estados Unidos y China — Telemundo
Não está claro se Brasil conseguirá nos substituir na soja para China, diz Ross — EM
Volatilidade e protecionismo são riscos para economias da América Latina, diz OCDE — O Globo
Estos son los efectos que puede traer a México la guerra económica de EU y China — Expansión
EU vs. China y México: la muerte del liberalismo — Dinero en imagen
Recognition from Latin American observers that the trade war between China and the US won’t exactly be a win for them.

Business Is Booming in the Panama Canal — Independent Reporter
As we mentioned earlier this month, the Panama Canal is benefitting from LNG demand in Asia. “If you exclude Japan, we assume demand from Asia in general and China in particular to about double over the subsequent five years,” says Panama Canal Authority head Jorge Quijano.

Viña Requingua refuerza sus planes en China y busca crecer en unas 500 nuevas hectáreas — Economía y Negocios
Experto dice que China aporta "tremendo mercado" para vinos de Chile — Xinhua
Viña Requingua is looking to add 500 hectares to its existing 1,200 to meet increased demand in China. Pablo Ugarte, head of the Catad’Or wine competition, agrees that China is a big market for Chilean wine.

Perú se propone duplicar llegada de turistas chinos: Descubre cómo lo hará — Portal de turismo
Perú incentivará llegada de más turistas chinos — El Peruano
Perú se posiciona con fuerza en mercado chino con intensa campaña digital — Portal de turismo
Peru is looking to double Chinese tourists to the country to 60,000 a year through a digital campaign, including a presence on WeChat.

Ante el proteccionismo, México debe profundizar su compromiso para diversificar relaciones comerciales — El Universal
Con o sin TLCAN, México debe comprar insumos a China, India o Bangladesh: IMCO — El Economista
China quiere seducir a exportadores mexicanos en tensión con EU — Expansión
With the status of NAFTA up in the air, and the potential for populists on both sides of the border, Mexico needs to look for new markets, including China, India, and Bangladesh.

La automotriz china JAC llega en septiembre a la Argentina con cinco modelos de autos — iProfesional
China’s JAC Motors will launch sales in Argentina in September, in a partnership with the Macri family’s Grupo Socma, which already imports Chery and DFSK cars.

Senado aprova novo embaixador do Brasil na China — Senado Federal
Investimentos chineses no Brasil devem continuar crescendo rapidamente — Senado Federal
Paulo de Mesquita has been appointed as Brazilian ambassador to China; he expects Chinese investment in Brazil to continue to grow rapidly.

China redujo los aranceles para la importación de 1.449 productos nacionales — Infobae
China is lifting tariffs on almost 1,500 Argentine goods next month; and Argentine government officials expect to make progress on pork, mutton, honey and cherries soon. 

Enviado chino ante ONU habla de proyectos de Iniciativa de Franja y Ruta en América Latina — Xinhua
La Nueva Ruta de la Seda: Estrategia Logística 2030 — La Estrella de Panamá
China continues to use the Belt and Road Initiative as a frame for looking at infrastructure projects in Latin America.

Bolivia, Brazil, Paraguay, Peru agree framework for “bi-oceanic railway” — GCR
Is the Bi-oceanic Railway back from the dead? Host countries including Brazil have agreed to a task force and a feasibility study. But with a price tag of $10b to $60b, we’ll believe it when we see it.

La preocupación en EU por China en Latinoamérica — El Heraldo de México
La política de China en América Latina — TRT
Chin-stroking on how the US will deal with China in Latin America.

Google invertirá 550 mdd en gigante chino JD.com — Forbes México
Google is investing $550m in Chinese e-commerce platform JD, which could allow it to expand beyond its current markets, including to Latin America.

Mercado chinês vai acelerar a educação de empreendedorismo e negócios no Brasil — Exame
The challenge of the growing Chinese market and potential Chinese partners will accelerate entrepreneurship and business in Brazil, according to National Services Confederation head Luigi Nesse.

Learning Latin America: China’s Strategy for Area Studies Development — The Inter-American Dialogue
Our friends at the Dialogue out with a report on how China is going to develop academic area studies programs.

Carne argentina, producto boutique en China y Japón — Clarín
Almost 50% of Argentina’s beef exports go to Asia, but it still lags competitors like Australia, Brazil and New Zealand in exporting to China, so there’s plenty of opportunity.

Embajada de China en la RD: Fu Xinrong — Listin Diario
Briunny Garabito Segura, embajador en China — Hoy
The Dominican Republic and China have announced Ambassadors, Briunny Garabito Segur and Fu Xinrong, respectively; both are career diplomats for their countries.

Las violaciones de derechos indígenas de las inversiones chinas — El Pais
A look at one of the issues surrounding increased Chinese investment and companies in Latin America - the impact on indigenous communities. This piece lists some of the projects in South America that have been a source of tenpin between Chinese firms and indigenous groups. 

Firmas de China y Colombia explotan ilegalmente oro en la Amazonía con la fachada de cooperativas — El Deber
Relatedly, Chinese and Colombian firms are using cooperatives in Bolivia to illegally mine gold along the Kaka and Beni rivers.
 

Interview: China's growth to benefit Chilean economy, says Chilean entrepreneur — Xinhua
Chile’s mining magnate Andronico Luksic sees continued opportunity for his country selling into the Chinese market.

Feature: Chinese entrepreneurs see huge potential in Cuban market — Xinhua
A report from the first-ever Cuba-Zhejiang business forum, held in Havana this week.

Korea — LAC

Hyundai Motor to Ramp up Vehicle Production in Brazil — Business Korea
Coming off its break-up with local company Caoa, Hyundai has announced it is going to expand production at its São Paulo plant from 180,000 vehicles to 220,000 this year.

Corea comparte su experiencia en gestión de recursos hídricos — KBS Radio
S. Korea offers e-gov't training to senior officials from Central, South American nations — Yonhap
South Korea and the Inter-American Development Bank hosted an event for public officials from Latin American on e-government and how to manage water resources more effectively.

Japan — LAC

AFM realizará activaciones en Japón — APEAM
Mexico’s Avocado exporters association (APEAM) is marketing their wares to Japan next week.

India — LAC

India looks to boost ties with Latin America — Hindustan Times
India aims closer ties with Latin American region with President Kovind's visit — The Week
Indian President Ram Nath Kovind visited Cuba and Suriname this week, in an effort to boost ties with the region.

GCC — LAC

Dubai Launches New Trade Tango with Latin America — Venture Magazine
A summary of the Dubai Chamber of Commerce and Industry (DCCI) outreach to Latin America, including the opening of an office in Brazil last year, and plans for offices in Argentina and Panama this year.

ASEAN & Oceania — LAC

New Zealand: Exclusive avocado access to Australia under threat — Fresh Plaza
Thanks to the Trans-Pacific Partnership, Mexico, Peru, and Chile are looking to challenge New Zealand’s hold on the Australian avocado market.

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World Cup: China is using football to score big in Latin America

阅读更多关于此新闻的文章,请点击链接: 中国正用足球在拉丁美洲大获成功

Russia and Saudi Arabia just kicked off the 2018 World Cup, in what has turned out to be the second biggest spectacle of the week — after whatever happened in Singapore. Here at Novam Portam we’re arguing the merits of Brazil, France, and dark horse Belgium to go all the way. While China (along with the USA) failed to qualify for this year’s tournament, eight teams from across Latin America will compete for what is arguably the most prestigious honor in world sport.

Known to be President Xi Jinping’s favorite sport, football’s popularity has increased exponentially in China over the last decade. Not known for operating via half measures, the sport's ascendency is another prime example of China’s public-private partnership. And how China is looking at the game from a domestic and global perspective.

The Chinese central government has a 2050 plan that includes targets to grow the number of domestic football-player population to 50m by 2020, becoming Asia’s best team by 2030, and win a world cup by 2050. China is spending big money to bring in big names to increase the domestic popularity of the sport, many of them from Latin America. From the $51m spent by Chinese clubs on transfer in 2012, the investment in players has increased 785% to 2016’s $451m. Many of these astronomical fees were spent on players from Latin America, including Brazilians:

  • Oscar (to Shanghai SIPG for €60m), 
  • Hulk (also to Shanghai SIPG for €55.8m), 
  • Alex Teixeira (to Jiangsu Suning for €50m), 
  • Ramires (also to Jiangsu Suning for €28m), 
  • star-crossed Brazil national coach Felipão (to Guangzhou Evergrande until late last year); and
  • Colombia's Jackson Martinez (also to Guangzhou Evergrande for €42m, although he just got released). 

In the cases of the players, the fees were paid to the European clubs who owned their rights at the time. While Europe will remain the acme of world clubs soccer for the foreseeable future, it begs the question could China supplant the traditional powers here too? Could we someday see top talent from Latin America go directly to the Chinese league based on the economics?

And it’s not just at the top. While the Chinese Super League topped the 2016 winter transfer market, spending $337m, second-tier China League One was fourth — ahead of the Bundesliga and La Liga —  splashing out $69m for players. And the Chinese government has made the development of grassroots football a priority, investing in football academies and importing youth coaches from Uruguay and beyond.

But beyond bringing the beautiful game home, China is injecting itself in football around the world. China has practiced Stadium Diplomacy in the Caribbean basin for almost thirty years, with a slew of national cricket ovals — and a baseball stadium in Nicaragua — built a decade ago. But the most prominent stadium deal was the 2011 construction of Costa Rica’s Estadio Nacional in exchange for that nation switching diplomatic recognition to Beijing. While some are calling it "Ping-Pong Diplomacy 2.0” —  hearkening back to China’s soft-power outreach to the US in the early 1970s — it doesn’t always redound to China’s favor: “There was a bit of a hold on that after Costa Rica,” our friend Margaret Myers points out. “But we may see more of it in the coming years.”

Chinese corporates are beginning to challenge the role that incumbent companies have in the most lucrative aspect of football — sponsorship. In addition to an agreement between the Chinese government, the Argentine Football Association (AFA), and the Agremiados and Banfield teams for training programs for Chinese youth in Argentina, Chinese sportswear company Peak Sport will provide the kit for Buenos Aires-based soccer club Lanús.

The 2018 World Cup will feature 4 Chinese companies as official sponsors: Wanda Group, smartphone maker Vivo, dairy company Mengniu, and electronics manufacturer Hisense. That’s up from the only one Chinese brand (Yingli Solar) sponsoring the World Cup four years ago in Brazil. While these sponsorships are undoubtedly focused on the sports growing popularity in China, they are also indicative of the growth of Chinese brands in Latin America. 

In the context of China-Latin America commercial relationship, Hisense represents the most interesting case. In a China vs Korea matchup, Hisense is taking on Samsung and LG in the lucrative flat-screen TV market, targeting countries such as Mexico, where flatscreen sales jump 20% ahead of the Cup.

China is making a big bet that rebalancing the football globe will pay off for them diplomatically and commercially. If it pays off, it may be the cultural connection that has long eluded the China-LatAm relationship. One day soon, Latin Americans could be supporting Team China (中国队) in its bid for the 2034 World Cup.

Top Stories

商务部:初步裁定原产于巴西的进口白羽肉鸡存在倾销 — MOFCOM
反倾销措施利好国内市场 鸡苗毛鸡价格近期上调 — Caijing
China impõe medidas antidumping sobre importação de frango brasileiro — Globo
China anuncia tarifas antidumping ao frango do Brasil — Valor
China impõe tarifas nas importações de frango do Brasil; BRF despenca 7,5% — Folha
Brasil diz que sanção da China sobre carne de frango não se justifica — Exame
China coloca em vigor sobretaxa provisória sobre frango brasileiro — Jornal Nacional
Maior exportador de frango do país, Paraná será afetado por medida antidumping da China — Comex do Brasil
Brasil pode recorrer à OMC se não houver acordo com China sobre frango, diz ministro — Notícias Agrícolas
Brasil estuda retaliar China por sobretaxar frango do Brasil, afirma Blairo Maggi — Senado Notícias
China’s MOFCOM has imposing anti-dumping measures of 18.8% to 38.4% on imports of Brazilian chicken meat for at least a year, after determining that there was dumping of imported broiler or chicken products. Brazilian exporters — who have struggled with last years’ food safety scandal and last month’s trucker’s strike — took a hit, with chicken giant BRF down 8% on the news. Brazilian Ag Minister and magnate Blairo Maggi has vowed to look at retaliating.

中国银行智利分行正式开业 — Bank of China
Ministro de Hacienda se reúne con representantes del Bank of China — Diario Financiero
Bank of China inaugura sucursal en Chile — China.org
Banco de China anunció que operará en la Argentina — El Cronista
Bank of China is growing its Latin America franchise. It inaugurated its Chile branch this week, and according to Argentine press it will open in that country, soon. This follows on plans announced earlier this year to expand its offerings in Mexico.

金风科技为5个阿根廷风电项目公司提供总计4.75亿美元担保 — Eastmoney
Goldwind Technologies (02208) Provides a Guarantee of US$475 Million for 5 Argentinian Wind Power Project — West Dollar
Goldwind International has agreed to invest in 5 wind power projects at Loma Blanca, Argentina. Goldwind’s holding company will provide project guarantees totaling $475m; unclear what the total project cost will be.

Sturzenegger negocia ampliar swap chino en hasta u$s5.000 M — Ámbito
Swap, carnes y soja, señales de respaldo del gobierno de China — Perfil
China levantó las restricciones y vuelve a comprar aceite de soja argentino — Infobae
As part of its efforts to gain international support in the face of market pressure on the peso, Argentina has turned to China. The People’s Bank of China has agreed to increase its swap line with central bank BCRA by up to $5b, alongside the $50b IMF facility. This is in addition to recent trade deals - state-owned Sinograin has already announced plans to purchase at least 120,000 tons of soybean oil from Argentina.

Japón estipula ley para ratificación del CPTPP — Vietnam Plus
TPP 11 podría entrar en vigor este 2018: Guajardo — El Economista
El primer ministro malasio pide una "renegociación" del tratado transpacífico — Swissinfo
Guajardo concluye gira de trabajo por Japón — Noticieros Televisa
Japan is moving forward with ratification of TPP by the end of this month. With that, Mexico’s Secretary of the Economy Ildefonso Guajardo thinks the deal will be done by the end of 2018. However, Mahathir Mohamad, the once and future Prime Minister of Malaysia, is calling for the treaty to be renegotiated. But it may be too little too late.

El crimen organizado en Chile tiene un nuevo objetivo: el aguacate — El Financiero
Avocado Toast Is Sparking a Chilean Crime Wave — Bloomberg
…and we’re here for it.

Chinese wine market: Still corked after all these years — Wilson Center Argentina Project Weekly Asado
Our own Mike Derham is quoted in the Wilson Center’s Argentina Project informative weekly newsletter:

There are structural challenges, too, Mike Derham, of Novam Portam, told me. Chile, for example, sells its wine duty free in China. But “what is more important is getting it in front of Chinese consumers,” he said. “They’d benefit from taking a page from Chile’s playbook, with in-store samples, pairing menus and the like.”

China — LAC

China "necesita mucho" de productos mexicanos — Debate
México y China firman convenio para exportar carne de cerdo y frutos rojos — Marco Trade News
Interesa a México comercio con China, impulsan acuerdos — El Economista
Crecen 54 por ciento exportaciones agroalimentarias de México a China — Vanguardia
54% growth of Mexican agro-food exports to China in five months — Fresh Plaza
China inundaría a México de productos que no puede mandar a EU — Forbes México
México alista exportación de plátano a China: Sagarpa — Azteca Noticias
Inversión China en México alcanza los 200 mdd anuales — Azteca Noticias
En portal de E-commerce México-China,  expondrán 50 mil fabricantes asiáticos — El Sol de Tulacingo
Mexican agricultural exports to China are up 54%, to $320m so far this year, thanks to China’s growing demand and Mexico’s search for a NAFTA plan B. The number is set to continue growing, as the two countries have just inked a deal to allow for the export of Mexican pork and more Mexican specialty fruits and berries, and moved forward plans to open China to bananas and plantains. Chinese investment in Mexico is expected to increase from the current $200m annually, in manufacturing and technology. It’s not all friendly, though, as there are concerns that the soon-to-be-imposed US tariffs could lead China to “flood” the Mexican market with exports.

Corredor mexicano de La Ruta de la Seda generará tensión con EE. UU. — Portafolio
If Antonio Manuel López Obrador (AMLO) wins next month in Mexico, will he play ball with China and the Belt and Road Initiative to create an over $7b rail alternative to the Panama Canal in Tehuantepec? AMLO advisor Gerardo Esquivel thinks so: “This is the type of project in which China will surely want to invest, because these are large-scale infrastructure projects with clearly positive returns.”

拉美和加勒比地区侨汇收入创历史新高 — People’s Daily
The Chinese Academy of Social Science Institute of Latin American Studies (CASS-ILAS) has published their Annual Report on Latin America and The Caribbean (2017-2018) was published. If you have a copy, send it our way.

Panamá cree que otros países centroamericanos terminarán abriéndose a China — La Vanguardia
Panamá cree que otros países centroamericanos terminarán 'abriéndose a China’ — TVN
Panama Believes Other Central American Countries Will Open Up to China — Latin American Herald Tribune
Dictarán conferencia en NY sobre las nuevas relaciones China-RD — Hoy
Migración ofrece reconocimientos a diplomáticos de Taiwán — La Tribuna
CN entrega reconocimiento al consejero político de Taiwan — La Tribuna
According to Panamanian Deputy Minister of Foreign Affairs Luis Miguel Hincapié — on the one year anniversary of his country recognizing Beijing — the economic returns of establishing diplomatic relations with Beijing are so good, that Central America and Caribbean countries that don’t already will do so. The Dominican Republic is mulling what its deal with Beijing will mean, while Taiwan continues to shore up allies like Honduras. We’ll see if it is successful.

Una UTE China y Argentina habría ganado la licitación de la Autovía Anguil-Santa Rosa — El Diario de la Pampa
In Argentina, China Construction America (subsidiary of CSCEC) and local firm Green SA have won the $1.2b mandate to build a new highway between the La Pampa province capital of Santa Rosa and Angel, as well as a ring road around the capital.

专注上海航线十年后,墨西哥航空拟携手东航乏力中国 — Yicai
On the tenth anniversary of Aeromexico entering the China market, the airline still only runs the Shanghai to Mexico City route. But, over the past four months Chinese citizens headed to Mexico has increased by a third. Maybe time for another route?

巴西计划转让13座机场运营权 — Xinhua
Brazil plans to auction operations of 13 airports including Maceió, Recife, Cuiaba, and Campo Grande, with the round launched by the end of the year. The auctions are hoped to bring in $1.1b; looks like Xinhua hopes Chinese companies will be allowed to bid.

Corfo, por ingreso de Tianqi a SQM: Acusa complot de China para “encarecer precio” de autos eléctricos — La Tercera
The war of words between former Chilean competitiveness regulator Corfo VP Eduardo Bitran and China’s Tianqi Lithium over the latter’s move to buy a quarter of SQM continues. Bitran says China has a “plot” to raise the price of electric cars.

Nectarines chilenos llegan a China con precios similiares a las cerezas — Estrategia
The Chilean fruit juggernaut continues onward, with nectarines as the new cherries.

Brazilian gaming industry eyeing China — The Brazilian Report
They already speak Portuguese in Macau right? But this is about video games, which could be a bigger business.

Chinesa CNPC embarca 1ª carga de diesel de grande porte para o Brasil — Exame
China's CNPC ships first larger-sized diesel cargo to Brazil — The Business Times
China National Petroleum Corp (CNPC) sent 60,000 tons of diesel to Brazil at the end of May, its first move of the refined fuel in a shipment of this size to the Americas.

Samuda ecourages Chinese to continue investing in Jamaica — Jamaica Gleaner
Minister without Portfolio in the Ministry of Economic Growth and Job Creation Karl Samuda enoucrages Chinese companies to continue investing in Jamaica's infrastructure.

Favorito a la presidencia en Brasil modera su visión sobre inversiones chinas — Swissinfo
Candidata brasileña afirma que relaciones con China deben ser ampliadas — Xinhua
Backing away from previous intemperate statements, Brazilian presidential front-runner Jair Bolsonaro says he wants to continue doing business with China, and that China is an “exceptional” partner. Positioning herself as the anti-Bolsonaro, Brazilian Presidential candidate Marina Silva says her country’s relationship with China is very important and has room to grow.

80% de los barcos que pescan en frontera marítima chilena es chino — La Tercera
80% of fishing vessels in Chile’s Economic Exclusivity Zone are Chinese, a survey shows. While this can be beneficial for both sides, Chinese fishermen have gotten in trouble in the waters of the Americas in the past...

Acuerdo Comercial con China potenciará a Panamá como puerta de entrada a América — La Estrella de Panamá
Acuerdo Comercial con China potenciará a Panamá como puerta de entrada a América para grandes empresas Chinas — Presidencia de Panamá
Panama and China have officially begun negotiations on a trade agreement, which Panama sees as an opportunity to make itself the gateway to the Americas for big Chinese firms.

Argentina prepares for first Chinese blueberry shipment — Fruit Net
More than twenty Argentine farms are cleared to export blueberries to China this season, the country’s first with access to the growing China market.

Adex: Trabas logísticas reducen colocación de productos peruanos en el mundo — Gestión
The Peruvian Exporters Association (Adex) laments that bottlenecks are limiting the country’s ability to export to the world.

Rusia y China buscan aumentar su influencia en América Latina — Mercado Militar
A América do Sul no mapa das "guerras do futuro” — Portal Vermelho
Write-up’s of comments by the head of the US’ Southern Command, Adm Kurt Tidd, that China and Russia are looking to increase their influence in Latin America.

China avança no Brasil, no rastro da Lava Jato — Folha
China is gaining ground in Brazil, thanks to the corporate devastation left by the Lava Jato corruption investigations, but Patrícia Campos Mello warns that Chinese firms can also be troublesome partners.

Cuántos 0Km venden las marcas chinas en la Argentina — iProfesional
There are 11 Chinese auto companies selling into the Argentine market, but even Chery — the biggest and longest in the market — only sells 40,000 vehicles, for 0.8% market share.

La agroindustria tiene puertas abiertas con China — El Diario
Colombia está a un paso de poder exportar carne bovina a China — El Heraldo
Colombia is one step away from exporting beef to China - the last step is approval of individual slaughterhouses by Chinese authorities. And the China-Colombia Investment and Commerce Chamber sees more agriculture exports to China ahead.

Entender o papel da China no mundo é estratégico para Brasil, dizem debatedores — Senado Federal
EUA x China: e o Brasil? — Diário do Grande ABC
Brazil continues to debate it’s role in an increasingly multipolar world.

Evo comienza periplo de 10 días que incluye su asistencia a la inauguración del Mundial — La Razón
Evo is taking grief for a 10-day boondoggle to today’s World Cup opening and a stop in Beijing on the way back.

Exportação de soja do Brasil para a China bate recorde face a tensões com os EUA — Observador
Brazil exports 9.76 million tons of soybeans to China in May — Macau Hub
Brazil’s export of almost 10m tons of soybeans to China in May hit records, thanks to the ongoing trade war between the US and China.

China's Hengli buys Brazilian oil ahead of refinery start-up: sources — Reuters
Chinese chemical producer Hengli Group bought its first crude oil cargo from Brazil ahead of the start-up of a new 40,000bpd refinery in Dailan in the fourth quarter.

Korea — LAC

Perú lanzará este año proyecto de Tren de Cercanías para Lima y norte de país — La Vanguardia
Peru is launching a train line for Lima and the north of the country, and thinks that South Korea — with similarly difficult topography — could provide the know-how.

Este año enviarían melón a Chile y Corea del Sur — La Tribuna
As Honduras grows its exports, it begins to send melons to South Korea and Chile.

La autopista para el Libre Comercio entre Corea y México — El Financiero
Korean Ambassador to Mexico Sang-II Kim sees a clear road for free trade between the two countries.

“Perú es ejemplo para la región en crecimiento y reducción de brechas” — El Peruano
Director of the Korean International Cooperation Agency (KOICA) Dae Hwan Kim visited Lima, where he said that Peru is an example for Latin America on growth and the reduction of inequality.

Las extrañas cifras comerciales entre Chile y Corea del Norte — Pauta
Grupo parlamentar de amizade Brasil-Coreia do Norte é efetivado — Senado Federal
Bancomext fue hackeado por un virus de Corea del Norte — El Debate
Banco de Chile Wiper Attack Just a Cover for $10M SWIFT Heist — Threatpost
This week has led to some reflections on Latin American links to the other Korea. Chile exported $1m worth of goods to North Korea in 2016, according to Pauta although Chilean Customs says nothing has been exported there since 2014. Brazilian senators (including ex-president Fernando Color de Mello) have set up a Brazil-North Korea Friendship caucus. But maybe don’t get too friendly — North Korea has been identified as the source of the January Bancomext hack. We have heard that other banks around the region have faced similar attacks, including Banco de Chile.

Japan — LAC

Aguacate de Pacific Fruits iría a los mercados de Argentina y Japón en el segundo semestre — Agro Negocios
Colombia expects to begin exporting avocados to Japan in the second half of this year.

Aprovada nomeação de embaixador brasileiro no Japão — Senado Federal
Autor do plano de fuga de senador da Bolívia será embaixador no Japão — Veja
New Brazilian ambassador to Japan Eduardo Saboya has been a bit of an activist when it comes to Brazil’s foreign policy, having helped a Bolivian senator seek asylum from his country in 2012. We expect he won’t have to do that in Japan.

TECTEL se convierte en el único distribuidor oficial De ICOM en Chile — Portal Minero
Telcel has become the sole distributor of ICOM’s radio communication equipment in Chile.

Gigante japonesa Muji abre primeira loja no Brasil — Estadão
Muji is putting a pop-up store in São Paulo’s Japan House.

India — LAC

Indians made OFDI of $14 9bn in LAC region: Exim Bank — UNI India
According to Exim India study titled: “Indian Investments in Latin America and the Caribbean: Trends and Prospects” India has invested $14.9b in the region

Descubriendo India — El Observador
Ignacio Bartesaghi reports from the Inter-American Development Bank’s Latindia conference last week.

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Do Peruvian port priorities match China’s?

阅读更多关于此新闻的文章,请点击链接: 秘鲁港口的优先事项不符合中国的要求?

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.

Top Stories

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.

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