MercoPress. South Atlantic News Agency

Chinese investment in Latam forecasted to grow 20% annually

Chinese investments in Latinamerica could grow at an annual rate of 20% in the coming decade particularly those sectors linked to commodities said Jiang Shixue, a Latinamerican expert from Beijing's National Academy of Social Sciences.

But Mr Jiang Shixue also cautioned that countries looking for Chinese investments will have to improve the quality of manpower, reduce corruption levels and emphasize on upgrading and expanding infrastructure. Speaking at the World Economic Forum meeting in Cancun, Mexico Jiang Shixue said that "in the next ten years Chinese investments in Latinamerica will grow between 10 and 20% annually, if both sides make the most to overcome those negative aspects". The Chinese official said that his country's investment in the region in 2006 could be estimated in the range of 20 billion US dollars. Chinese companies which are desperate for commodities and metals have shown special interest in the Latinamerican mining industry. Experts also state that China is beginning to view Latinamerica as a promising market for consumer goods. In Mexico local businessman Ricardo Salinas recently joined with a Chinese company to manufacture and sells automobiles in Mexico and Central America, a sign that the Asian giant is looking to the region, said analysts. "A lot of things are going on. This is far distant from 20 years ago when China looked at Latinamerica simply as a supplier of minerals", said Lorenzo Weisman from a New York investment bank.