November 10, 2010
China's Problematic Investments in Latin America
COHA, Council on Hemispheric Affairs
China's economic involvement in Latin America reached an all-time high last month when Beijing was able to gain a large stake in the Brazilian petroleum market. The deal, brokered by Chinese petroleum company Sinopec, allows the Spanish firm Repsol to turn 40 percent of its Brazilian oil stake over to the Chinese state corporation. Worth USD 7.9 billion1, the agreement has prompted other countries in the Western hemisphere to reevaluate China’s ever-changing economic and political role in Latin America. Recent events highlight the seriousness of China’s drive to stake out a major economic presence in Latin America, as well as a readiness to use economic methods in order to achieve its goal.
TAGGED: Beijing, Latin America, China