Chinese News Coverage of Latin America - February (part 1)

Inter-American Dialogue

1. Hong Kong and Chile in the first round of FTA negotiations
中国香港和南美国家智利就自贸协定展开首轮谈判
本文来源于《拉美贸易网》2012年01月31日

Chile’s Ministry of Foreign Affairs announced that Chile and Hong Kong have begun the first round free trade agreement negotiations. In previous meetings, the two sides exchanged views and reached agreements on such issues as market access, health inspection and quarantine measures, investment mechanisms, financial services, and government procurement. Chile’s Secretary of International Economic Relations explained that these negotiations are part of a broader strategy to open up to new markets in Asia.

2. China has been hurt by Argentina's import restrictions
阿根廷限制进口最大的受害国是中国
本文来源于《拉美贸易网》2012年02月03日

Argentina is among the countries with the highest incidences of trade protectionism, according to a report by Global Trade Alert. The report indicates that many countries are impacted by Argentina’s import restrictions. China has been affected 65 times; Thailand, 40; Indonesia, 39; Malaysia, 38; Singapore, 38; South Korea, 38; Vietnam, 37; Hong Kong, 35; Brazil and Pakistan, 31; North Korea, 29; Germany, 28; Italy and Spain, 27; USA, 25; and Uruguay, 24.

3. Prices of "Made in China" increased, Mexico is largest beneficiary
“中国制造” 涨价 墨西哥成最大受益者
本文来源于《华尔街日报中文版》2012年 02月 06日

China’s labor force is shrinking as a result of the "one-child policy" and an ongoing preference for boys over girls. According to UN estimates, the number of women between ages 15 and 24 will decrease from 106 million in 2001 to 92 million in 2015. The increase in productivity of Chinese workers fails to keep up with increases in labor costs. Fluctuations in energy prices in recent years have also meant increases in transportation costs. Higher costs have forced some American manufacturers to shift their production to domestic manufacturing facilities. Others see Mexico as a good production location due to the country’s lower wages. The number of shipping containers into the Port of Los Angeles and Long Beach Port last year decreased by 0.2%. Both ports process imports of Asian goods entering the United States. During first 11 months of last year, however, train and truck cargo from Mexico to the United States increased in weight by 8.7% over the previous year. Over the past year, share prices for certain Mexican transportation companies rose sharply.

4. Ecuadorian president participated in the opening of an Urban Safety Command and Control Center
厄瓜多尔总统为中方承建报警中心揭幕
本文来源于《新华网》2012年02月07日

The Safety Command and Control Center located in Guayaquil, Ecuador is one of South America's most advanced state-level integrated command and control centers for alarm response. The center was designed and constructed by the China National Electronics Import and Export Corporation. China provided all necessary hardware and software for the facility.

5. Chavez said it's "a very positive move" for China and Russia to veto UN resolution on Syria
查韦斯赞赏中俄投反对票 称是“非常正面的举动”
本文来源于《新华网》2012年02月07日

A UN Security Council draft resolution on Syria failed to pass due to opposition from Russia and China. Venezuelan President Hugo Chavez viewed the Chinese and Russian veto as very positive. He criticized western countries for having destroyed Syria through bombing and assassination attempts, labeling the West’s behavior “schizophrenic imperialism.”

6. Bilateral trade between China and Chile totaled $29 billion in 2011
中智双边贸易2011年超过290亿美元
本文来源于《拉美贸易网》 2012年02月07日

According to data released by Chilean Customs, bilateral trade between China and Chile in 2011 totaled approximately $29 billion, an increase of 17.3% over the previous year. Chile exported $18.32 billion in goods to China and imported $10.71 billion in goods from China. China remains Chile's largest trading partner, largest export destination, and second largest source of imports.

7. Wang Qishan will visit Brazil to attend the second meeting of the China-Brazil High-Level Committee
王岐山将访问巴西并出席中巴高委会第二次会议  
本文来源于《拉美贸易网》2012年02月08日

A Chinese Foreign Ministry spokesman announced on February 6 that the Vice Premier Wang Qishan will visit Brazil to attend the second meeting of the China-Brazil High-Level Coordination and Cooperation Committee. The meeting will be held from February 10-14, and will be hosted by Brazil’s Vice-President, Michel Temer. According to the spokesman, China hopes to facilitate and coordinate the role of bilateral cooperation in various fields and further develop the China-Brazil bilateral strategic partnership.

8. Brazil's Embraer enters Chinese market
巴西航空工业借助成龙进入中国 
本文来源于《拉美贸易网》2012年02月08日

The Hong Kong actor Jackie Chan bought a $30 million Embraer private jet (Legacy 650). Embraer hopes to take advantage of Jackie Chan’s influence in the Chinese community to promote business opportunities in Asia, and especially in China. Embraer has received 13 orders from China for private jets since Chan’s purchase.

9. China exports subway vehicle to Argentina
中国地铁列车出口阿根廷
本文来源于《拉美贸易网》2012年02月10日

On February 9th, a shipping ceremony was held in Shanghai for a subway project in Buenos Aires run by Changchun Railway Vehicles Co., Ltd. The subway trains are expected to arrive in Argentina by the end of April. This project was approved by President Hu Jintao during his 2004 visit to Argentina. Changchun Railway Vehicles Co., Ltd. has achieved a dominant position in South American market through its presence in Argentina and a separate Brazil project.

10. Venezuela will launch second satellite received from China
委内瑞拉将发射第二颗中国制造卫星
本文来源于《新华网》2012年02月11日

Chavez announced that the "Miranda" ground observation satellite will be launched around in October of 2012 with the help of fifty Venezuelan engineers who are traveling to China for satellite technology training. He added that the satellite would help Venezuela to better observe and address earthquakes, floods, heavy rain, desertification, and mining issues. The Miranda is the second satellite that China has manufactured for Venezuela. In October 2008, Venezuela received its first China-manufactured communications satellite, which it calls "Simón Bolívar".

The New Banks in Town: Chinese Finance in Latin America

In their Inter-American Dialogue report, “The New Banks in Town: Chinese Finance in Latin America,” Kevin Gallagher, Amos Irwin, and Katherine Koleski offer the first comprehensive summary of China’s lending practices in Latin America and the Caribbean (LAC). The authors provide estimates of the volume, composition, and characteristics of Chinese lending to the region since 2005, offer comparisons to international and Western lending institutions, and examine some commonly held notions about Chinese loans to LAC. These include claims that China’s loans have less favorable terms than those of international financial institutions (IFIs) and Western banks, that Chinese lending carries few policy conditions, and that Chinese lenders impose less stringent environmental guidelines than their Western counterparts. The report lends credence to some of these claims, but less so to others.

Through careful examination of government, bank, and press reports from both China and recipient countries, and through interviews to confirm loan details, the authors estimate that Chinese loan commitments to Latin America have totaled approximately $75 billion since 2005. Furthermore, China’s 2010 commitments to the region (totaling $37 billion) exceeded those of the World Bank, Inter-American Development Bank, and the United States Export-Import Bank (US Ex-Im Bank) combined for that year. The report also compares the terms of China’s loans to the region, finding that Chinese Development Bank (CDB) terms are often more stringent than those of the World Bank, while the China Export-Import Bank (China Ex-Im Bank) offers lower interest rates than the US Ex-Im Bank. The authors also confirm that there are virtually no policy conditions associated with Chinese loans, but explain that Chinese banks often require equipment purchases and sometimes oil sale agreements. Finally, the report suggests that Chinese finance operates under an
expanding set of environmental guidelines, but that these guidelines are not yet on par with those of IFIs or Western lending institutions.

THE NEW BANKS IN TOWN: CHINESE LOANS IN LATIN AMERICA (FULL TEXT)
THE NEW BANKS IN TOWN: CHINESE LOANS IN LATIN AMERICA (ABSTRACT)

Top Ten of 2011!

Inter-American Dialogue

The Chinese Academy of Social Sciences Institute of Latin American Studies (CASS ILAS) published its list of Top Ten Latin American Events of 2011 in the February 2012 edition of its Journal of Latin American Studies (拉丁美洲研究). They are as follows:

1. 中拉合作深化，伴随不和谐之音  
China-Latin America cooperation deepened, but with some areas of "disharmony"

2. 古共“六大”开启经济社会模式“更新”新时代  
The 6th Congress of the Cuban Communist Party initiated an "even newer" social and economic model

3. 拉美及加勒比国家共同体首次峰会正式召开 
Latin American and Caribbean countries participated in the CELAC summit

4. 拉美多国举行总统选举，中左翼政权保持优势  
Center-left regimes maintained their dominant position in the region's presidential elections

5. 智利爆发1970年以来最大规模的学生抗议活动  
The largest student protests since 1970 erupted in Chile

6. 委内瑞拉总统查韦斯癌症病情牵动世界舆论 
Hugo Chavez's cancer attracted global attention

7. 奥巴马总统出访中南美3国 重申美拉“平等伙伴关系” 
Obama visited three countries in the region and promoted "equal partnership"

8. 巴西总统罗塞夫访华并参加“金砖国家”领导人峰会 
Dilma Rousseff visited China and attended the BRICS summit

9. 中美洲和墨西哥毒品暴力形势急剧恶化
The drug violence situation in Central America and Mexico deteriorated considerably

10. 奥巴马签署美国与哥伦比亚和巴拿马的自由贸易协定 
Obama enacted free trade agreements with Colombia and Panama

#1 - CASS scholars cite President Hu Jintao’s participation in the 2011 G20, BRICS, and APEC meetings, as well as his meetings with Brazilian President Dilma Rousseff and Peruvian President Ollanta Humala as evidence of China’s deepening relations with the region. They also mention high-level visits to Latin America by Xi Jinping (current vice-president and presumed future president of China), Wang Qishan (vice-premier), Hui Liangyu (vice-premier), Liu Yandong (politburo member and state councilor), and Chen Changzhi (vice-chairman of the Standing Committee of the National People’s Congress). Growing trade between China and Latin America ($196.7 billion between January and October of 2011); a successful China-Caribbean Economic and Trade Cooperation Forum; and visits to China by Dilma Rousseff, the prime minister of Barbados, and Evo Morales are all cited as additional examples of deepening bilateral cooperation. Mexican President Felipe Calderón’s meeting with the Dalai Lama, as well as China-targeted protectionism in Argentina and Mexico are examples of “disharmony,” according CASS Institute of Latin American Studies scholars.

#2 - In April 2011, the Sixth Congress of the Cuban Communist Party endorsed a fundamental change in the country’s political and economic model. It proposed a smaller role for the state, an end to certain government subsidies, and the possibility of term limits for high-ranking government officials. Though likened to China’s economic reforms in the 1980’s, the island’s reforms fall short of China’s “reform and opening-up” policies and move toward “market socialism.” A Chinese magazine article argued in May that as a result of reforms, Cubans are now calling long distance on cell phones, staying in five-star hotels, using computers, and even shopping online. Such activities remain a distant reality for most Cubans, however.  Though praising of Cuba’s new policies, the same article maintained that further economic reform is necessary to avoid a "crumbling" of Cuba’s economic system.

#3 - Exclusion of the U.S. from the Caracas-based CELAC summit on December 2nd was characterized by some as a definitive rejection of U.S. hegemony in the region, as well as an indication the United States’ dwindling influence in Latin America. While the U.S. is still a major economic and political player in the region, Latin American nations have been actively diversifying their foreign relationships for years. The European Union remains a major partner for many Latin American countries, while China, India, South Korea and other global economic players are increasingly active in both Central and South America. China has insisted on multiple occasions that it has no intention of challenging the U.S.’s historical dominance in Latin America, but U.S. absence from the region (whether imposed, in the case of CELAC, or implicit through weak regional policy) has arguably created space for more extensive engagement from China and other countries. Regarding the CELAC summit, Chinese President Hu Jintao sent a message to Hugo Chavez and Sebastian Piñera on December 2nd to offer congratulations on its founding, referring to it as a “milestone in regional integration.”

#4 - CASS scholars mention wins by Michel Martelly in Haiti, Ollanta Humala in Peru, Christina Fernandez in Argentina, Daniel Ortega in Nicaragua, and Donald Ramotar in Guyana as evidence of continued center-left regime popularity in Latin America. While there has been some preference on the part of Chinese firms to negotiate directly with specific Latin American leaders, and especially those of the leftist variety (Chavez and Correa, for example), China’s engagement with the region has, in most all cases, been pragmatic in nature and profit-driven. China’s scholars and firms are increasingly cognizant of Latin America’s political trends, however. Investment-related controversy in countries like Burma and Libya has highlighted the importance of political calculation and risk assessment on the part of would-be investors.

#5 - In the decades following the 1989 student-led pro-democracy demonstrations in Tiananmen Square, the possibility of social instability brought about by student protests is of ongoing concern to China’s leaders. The Chinese government has done much in the past few years to tackle those issues thought to have contributed to the Tiananmen protests -- inflation, government corruption, and unemployment, for example. While Chile's education-related protests had little chance of provoking similar activity across the Pacific (despite similar concerns in China regarding education access and quality), they did expand to include broader interest groups and issues -- from constitutional reform to a revamped tax system. Chile’s protests also sparked education-related demonstrations throughout the Latin America, as noted by CASS scholars. China, for its part, remains vigilant against any indications of Arab Spring-inspired discontent.

#6 - China has no illusions when it comes to doing business in Venezuela. The risks of direct negotiation with Chavez are increasingly apparent to China’s firms and major financial institutions. The leader’s cancer diagnosis has introduced an even greater degree of uncertainty for Chinese interests in Venezuela. In recent months, the Venezuelan opposition suggested that Chavez’s oil-based agreements with the Chinese are unconstitutional and illegitimate. According to National Defense University scholar, Evan Ellis, this could lead a post-Chavez government to question its legal obligation to honor agreements with China. Chavez's medical treatment in Cuba, as well as his suggestion that U.S. was responsible for cases of cancer among Latin America's leftist leaders, received signficant media coverage in China.

#7 - CASS scholars highlight Obama’s visits to Brazil, El Salvador, and Chile, as well as the U.S. 2011 focus on “equal partnership” when engaging countries in the region. In its own dealings with the Latin America, China promotes a “win-win” policy of “mutually beneficial” interaction. President Hu Jintao made no official visits to specific Latin American countries in 2011, but vice-president (and likely future president) Xi Jinping visited Cuba, Uruguay, and Chile, where he reached a number of primarily investment and/or trade-based agreements with the countries’ leaders.

#8 - Brazilian president Dilma Rousseff visited China in April of 2011 after taking office in January. She sought promises from China’s leaders regarding diversified trade, as well as agreement on Brazilian meat exports, a China Southern contract for twenty Embraer jets, and an agreement with Taiwan’s Foxconn to manufacture electronics in Brazil. Other deals ranged from agriculture cooperation to plans for Olympics-related infrastructure development. The visit was seen widely as an indication of the growing importance of the China-Brazil relationship. Following her visit to Beijing, Rousseff attended the BRICS summit in Sanya on China’s Hainan Island, where she met with leaders from the four other BRICS nations.

#10 - China has established its own free trade agreements with three countries in Latin America – Chile, Peru, and Costa Rica. The Costa Rica FTA came into effect on August 1, 2011. According to Costa Rican press, China and Costa Rica have been working ever since to implement its various provisions. The FTA currently enables over 60 percent of the countries’ products to enter each other’s markets duty-free. Chinese textiles, machines, electric appliances, vegetables, fruits, automobiles, chemical products, raw fur and leather exports are expected to benefit from the agreement. Costa Rica should see higher sales of coffee, beef, pork, fruit juices and jam in the Chinese market. China also maintains bilateral investment protection agreements and bilateral tariff reduction agreements with certain countries in the region, most of which were implemented in the mid-1990s or early 2000s.