China'S Increasing Investment In Latin America

China's total trade with Latin American countries and regions reached US $216 billion 600 million in 2016, of which Latin American exports to China remained stable. China has been the largest importer of Latin American minerals, soybeans and sugar products for many years.

Rosales, director of the international trade and integration division of the Economic Commission for Latin America and the Caribbean, said in an interview with our reporter that the Chinese market is in Latin America.

It plays a vital role as a stabilizer.

At the turning point of Latin American development, China, an emerging market country, will become an important partner in Latin America.

Since the beginning of the new century, Sino Latin American trade has witnessed an unprecedented growth trend.

The trade volume between China and Latin America increased by 16 times in 2016, and the proportion of China's total foreign trade increased from 2.7% to about 6% in 2000.

China has become the largest trading partner of many Latin American countries.

Marcelo Fernandez, former Deputy Foreign Minister of Ecuador, believes that as the world's second largest economy and an important engine of the global economy, China's development provides an opportunity for Latin American development.

China has now become an important energy partner and economic and trade partner in Latin America. China's financial investment is playing a vital role in the infrastructure construction of Latin American countries.

Statistics show that last year, China's Latin American countries and regions

It was $113 billion 900 million, down 13.8% from last year; imports from Latin America amounted to $102 billion 700 million, down 1.1% from last year.

Ronnie Lins, director of the Brazil Institute of Chinese studies, said in an interview with our reporter that after more than 10 years of high-speed growth cycle, Latin American trade has entered a period of deep adjustment, which has begun to decline from the ultra-high level, which is fully in line with the market rules.

Lins believes that from the perspective of the environment, the economic slowdown in both sides has also led to a decline in market demand.

In recent years, China's economy has shifted from high speed growth to medium and high speed growth, and the Latin American economy has been stagnant for two consecutive years.

Influenced by many factors, such as the global economic recovery is weak, commodity prices continue to slump, the international financial market is unstable, and some Latin American countries are unstable, Latin America's own development is facing bottlenecks and lack of social needs.

As a developing country, Latin American exports are relatively simple, mainly low value-added products such as ores, petroleum, agricultural and sideline products, and import and export trade is obviously suppressed.

China's Ministry of Commerce recently released a report showing that China's investment in Latin America has become increasingly diversified and broader.

According to preliminary statistics from the Ministry of Commerce, China's direct investment in Latin America in 2016 was 29 billion 800 million US dollars, an increase of 39% over the same period last year. Meanwhile, large-scale mergers and acquisitions continued to emerge. Meanwhile, the investment field began to expand from the traditional fields of energy and mineral resources and infrastructure to agriculture, manufacturing, information industry, service industry, e-commerce, air pportation and many other fields.

From this point of view, in the context of China's Readjustment of its economic structure and Latin American multinational countries' efforts to reshape the manufacturing sector, the Sino Latin American trade and economic cooperation will be adjusted and optimized simultaneously.

In the overall trade between China and Latin America, there is also a "counter trend" growth.

For example, the volume of trade between Peru and China increased by 4% in 2016 compared with that in 2016. The amount of traditional commodities exported to Chile in 2016 amounted to US $8 billion 221 million, an increase of 14.51% over 2015.

In the long run, many factors have injected new impetus to the growth of Sino Latin American trade.

Cooperation in the construction of free trade zones has directly promoted bilateral trade.

Against the backdrop of anti globalization in some European and American countries, China has signed a FTA with Chile, Peru and Costa Rica since 2006, and has directly promoted the rapid growth of Sino Latin American trade.

At present, joint research on the feasibility of FTA with Columbia is being actively promoted, and Uruguay has also proposed to China the willingness to cooperate in FTA.

The Sino Latin American Forum, bilateral economic and trade consultation mechanism and China's new policy on Latin America have played an active role in enhancing Sino Latin American trade.

Robert, Professor of international relations at Rio Catholic University in Brazil, told an interview with our reporter that in recent years, China and Latin America have been "moving constantly": the China Latin American Forum was established in 2014, and since 2016, China's economic and trade mixed committee meeting with Uruguay, Argentina, Cuba, Ecuador and other Latin American countries and the seventh high-level working group meetings of China and Mexico have been convened and new policy documents are announced.

These initiatives have discussed and communicated the problems arising from economic and trade cooperation, and put forward new ideas and arrangements for strengthening economic and trade cooperation, which will undoubtedly benefit the development of bilateral trade in the future.

Robert believed that China proposed the construction of the Asia Pacific Free Trade Area, strengthening regional comprehensive economic cooperation and promoting "

"Construction" is also a major positive news for Latin America.

The world bank's latest quarterly commodity outlook report predicts that the rebound in demand and limited supply will benefit from oil to metal zinc and other industrial bulk commodities, especially oil, natural gas and coal.

This is undoubtedly good news for Latin America.

Brima Vera, an economist at Brazil Development Bank, told an interview with our reporter that, as a result of the rise in commodity prices, as an emerging market country highly dependent on commodity exports, the economy of Brazil and Argentina is likely to end in 2017. Columbia, Peru and other countries will benefit greatly from the rebound in oil prices and mineral prices.

Because of this, the report released by the Economic Commission for Latin America and the Caribbean predicted that Latin America was expected to pull out of recession and achieve a 1.3% growth in 2017, which provided a favorable environment for Latin American trade and the growth of Sino Latin American trade.

Affected by the economic crisis in Brazil, the volume of trade between China and Pakistan has declined in recent years, but the importance of the Chinese market is irreplaceable.

According to data released recently by the Ministry of agriculture of Brazil, China's total imports of agricultural products from Brazil amounted to US $20 billion 830 million in 2016, and it continues to be the largest importer of agricultural products in Brazil.

According to the official statistics currently available in Brazil, Brazil's investment in China in 2016 has reached 19 million US dollars, a small increase over 2015. During the same period, Chinese enterprises' investment in Brazil increased rapidly, with an annual investment exceeding US $10 billion, and the stock of investment exceeded 30 billion yuan.

Xia Xiaoling, Minister of economic and Commercial Counsellor of the Chinese Embassy in Brazil, said in an interview with reporters that since 2009, China has been the largest trading partner of Brazil for many years.

At present, more than 200 Chinese funded enterprises have entered Brazil, involving oil, mining, electricity, manufacturing, finance, agriculture, services and wholesale and retail industries.

Even during the economic downturn in Brazil, the pace of investment in Brazil by Chinese enterprises did not slow down.

The economic and trade relations between China and Pakistan have already broken away from single commodity trade relations and are developing in a more large-scale way to trade and investment. Mutual investment will become an important driving force for the development of bilateral economic and trade cooperation.

Cai Hongxian, general manager of China State Grid Brazil holding company, told the reporter that through several large projects

State Grid Brazil has purchased about 100 million US dollars of domestic equipment, such as NR group, China power and pry, to drive more enterprises and equipment to "go out".

Robert said that the Brazil government attaches great importance to foreign investment, especially the promotion of China's investment in Brazil's economic development. Since taking office, President Temel has vigorously promoted the "investment partner program" and constantly optimized bidding and other policies. Brazil's business environment has gradually improved, which will directly promote the bilateral trade of Bazhong to a higher level.

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