MercoPress. South Atlantic News Agency

China concentrates investments in Latinamerica.

China's overseas direct investment in 2004 reached 37 billion US dollars, half of which in Latinamerica, reported Monday in Beijing China's Trade and Investment Ministry. The main areas of Chinese interest were mining, trade related services, manufacturing plus wholesale and retail trade indicated the official release.

But despite Beijing's increasing overseas investments China remains as the largest recipient of foreign investments totalling 60,6 billion US dollars last year, a 13% increase over 2003. China has moved aggressively into Latin America one of the few regions in the world which enjoys a trade surplus with the Asian giant.

Last November, Chinese President Hu Jintao went on a two-week tour of Latin America that included stops in Brazil, Argentina, Chile and Cuba.

In January 2005 Chinese Vice President Zeng Qinghong and a numerous delegation visited Mexico, Peru, Venezuela, Trinidad and Tobago and Jamaica where he attended the China-Caribbean Economic and Trade Cooperation Forum 2005.

China which in 2004 became the world's third trading power, has poured billions of dollars in Latin America in an effort to ensure long term supplies of commodities and strengthen its presence in a region traditionally dominated by the United States. Brazil, Argentina and Venezuela are Beijing's favourites.

Chinese direct investment in Venezuela has risen to $700 million annually, most of which into oil exploration and production.

China in 2003 became the world's biggest oil consumer behind the United States and with an annual economic expansion averaging over 8% in recent years seeks to diversity oil and gas suppliers.