China and IADB agree on one billion investment fund; warnings from Brazil
China and the Inter-American Development Bank said on Monday they are starting a 1-billion US dollars fund to invest in Latin America, though the Asian giant’s latest push to expand its influence in the region prompted words of caution from Brazil.
To feed its fast-growing economy’s voracious appetite for raw materials, China has invested tens of billions of dollars in the region, from Mexico to Argentina, over the last decade to acquire strategic assets or companies in sectors such as oil, minerals and food products.
“This shows the enormous interest that China has in the Latin American region,” IADB President Luis Alberto Moreno told reporters at the IADB annual meeting in Montevideo.
The deal with the IADB also shows China is strengthening its ties to prominent institutions in Latin America. China has been able to expand its leverage in what was traditionally seen as the backyard of the United States partly because Washington was distracted for much of the last decade with wars in Iraq and Afghanistan.
But some countries, namely Brazil, Latin America’s largest economy, have been wary about China’s deep pockets and labour practices even as Brazil has ramped up exports to Beijing.
“We need to look at these kinds of proposals cautiously because the Chinese presence in some places has meant that they bring over their own workers and practices” Brazil’s planning minister, Miriam Belchior, said at the IADB meeting.
Brazil and China have clashed over trade and investment rules as the two, both members of the BRICS group of emerging economies, race to protect local industries from foreign competition and a slowing global economy. Brazil has raised taxes on some imports and last week succeeded in getting Mexico to rework a decade-old trade deal by agreeing to quotas on exports, raising fears of protectionism in the emerging-markets world.
China has not given full clearance for Brazil’s Vale SA, the world’s largest iron ore producer, to dock its giant “Valemax” iron ore ships in Chinese ports. Analysts say it could be a roundabout effort to protect Chinese shipbuilders.
Brazilian companies are also competing with China for more influence in Latin American and other emerging regions like Africa as their economic clout soars.
China has come under fire for some of its labour practices in Africa that include importing Chinese workers and paying low wages.
Rapidly growing China has surpassed the United States as the main trade partner of Brazil as well as many other commodity-rich countries of Latin America.
Latin America’s leaders have looked to Beijing for trade and investment deals to offset slow economic growth in the United States and Europe.
In addition to the fund with China, the IADB said it would make available more than 300-million dollars to help improve the capacity of public security and anti-crime strategies in a region with more than 30% of the world’s murders but only 8% of the global population. Moreno admits that crime has risen despite economic growth.
Suggested Stories
-
May 14th 2013
New WTO chief says it’s time for ‘modulating’ ambition and pushing protectionism back
-
May 13th 2013
German president in Brazil to promote trade and investments
-
May 17th 2013
Argentina’s ‘autarkic project’ worsens bilateral relations and multiplies problems
-
May 17th 2013
Argentine whitewash bill turning into ugly electoral debate
37 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
Breaking News
Peru canceled a visit by a British warship.
“This decision has been made to honour our commitment with the Unasur and a Latin American support for Argentina’s legitimate rights regarding the Malvinas, South Georgia and South Sandwich islands, and their surrounding maritime territories,” Peruvian Foreign Minister Rafael Roncagliolo said in a brief statement to news agencies
www.youtube.com/watch?v=UyPC0SD0PGw
Good
So how does this affect the Falklands....? I can't think of anything they need from Peru.... tinned asparagus maybe....?
What does Peru get from the Falklands... employment on FI fishing boats.... not a huge source of foreign exchange but important enough if you are one of the fishermen. The only other FI export I can think of is the cast off children's clothing the Peruvian fishermen get from the Fishermen's Mission......
It doesnt matter whether you have some form of unity in the Americas over the RG claim to the falklands. In fact it seems perfectly logical that the Americas would bond over the issue especially as they gain economic momentum and become increasingly reliant on one another!
Why should we need to worry about South America? In what capacity?
So your point is what? You dont have one really, do you?
What does Peru get from Malvinas you say? It allows fishing companies to treat them as modern slaves.
China tries to take advantage of everybody, even the US who they own. Next time when you go to your favorite store “Walmart”, check out the labels where the products it sells are made, for the majority.
“Chavez will be more than willing to sell them off in exchange for some cake.”
Really? Is that what you have been taught by watching fox news, cnn or msnbc? Proves my point you're imbecile that needs to go back to school.
“@4 - OH NO!!!! Now the British have to worry about Peru and their vast military capabilities! Laughable. When will South America grow up? ”
Grow up yourself rather than typing comments here out of your ass. Didn't your mom taught you to think before you want to talk about an area you have no clue about? Apparently not. This article doesn't even mention anything about Peru, a nation you never visited and knows nothing about.
en.mercopress.com/2010/08/18/spanish-fishing-vessels-threatening-to-abandon-the-port-of-montevideo
So! go and read my post again and then get back to me when you can back-up your idiotic posts
==============================
a) First you listen to the South American.
b) Then you agree something with the South American.
c) Then they renege on the agreement.
d) Then you sit and wonder if they have any honour or spines at all.
e) Then you realise that they don't.
f) then go back to a)
www.thenational.ae/thenationalconversation/industry-insights/energy/argentina-offers-a-lesson-in-how-not-to-run-an-oil-policy
They seem to think they can sell concessions, where they buy all the oil for a fraction of the retail value, leading to no investment money, to which they take back the concession.
That's not a strategy, that's slapstick.
(from an Atheist)
not only that but the Yanks wont be happy and there will be a price to pay for that.
there is an increasing slippery slope developing for the South american countries now what with trade protectionism, the economic bubble bursting as the world recession now hits that continent and squabbles like that between the RG's and the FI/bolivia and Chile now being used as a smokescreen for their internal woes.
This is all familiar stuff. None of it leads to anywhere good.
@26 They've done the same in Africa, it's nothing new. If you sleep with the devil, you typically get sodomised by the devil, and you have to say you enjoyed it.. and wear a gimp mask.
Well done ,if you write the word of “” the devil“” as “” the Devil“”
then it shows separate meaning.
“the kings from the East” in the Christian scriptural verse Revelation 16:12 -
'And the sixth angel poured out his vial upon the great river Euphrates; and the water thereof was dried up, that the way of the kings of the east might be prepared'. (King James Bible) Interpreted as Mongols (chin) / Japanese.
And I used to be the head server in my parent's church, then I studied science and THEN I grew up. I have never read any article by Dawkins or even studied atheism.
I do not need the 'sucker dummy' that there is someone who can save me, or scare the bejeebers out of me, either in this life or some 'other life' after death.
In my experience you have to look after yourself and your family and friends, no-one else, least of all a 'supreme being' is going to do it for you.
You may see it as paradoxical that I do believe in some parts of the bible such as do unto others as you would want done unto you and especially (in serious cases) an eye for an eye.
28 Room101 Or even assuming the Devil exists. No God, No Devil.
What a fiery Twitter boy !
But you use here as if Twitter.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!