Macau, China, 19 Jul – China is developing a deeper approach to its South American partners which for Brazil centres on the installation of its medium and high technology companies, indicates Mexican researcher Liliana Avendano Miranda in a recent study.
In the study on China’s investments in Latin America published by the Chinese Study Centre of Stellenbosch University in South Africa, she asserts that after two decades of relations centred on trade and investment relations, China was taking the approach to a higher level, as shown by an analysis of policies for the region published in late 2008.
“The PRC is expecting to make a deeper approach into Latin America and the Caribbean, assuring good relations with food (Argentina), oil (Venezuela) and raw materials (Chile) providers, as well as strategic locations for their medium and high-tech enterprises,” states the researcher from the Mexican University of Veracruz.
Vehicle or parts manufacturers have played an important role in this expansion. More recently, some major Chinese banks have also been setting up operations in Brazil, such as the Bank of China.
The lead has also been followed by Brazilian enterprises, the latest being the Embraer aviation company, which established a subsidiary to operate in the Chinese market.
The analysis specifies that the Chinese government supports qualified companies with good reputations for investing in industrial investment, agriculture, forestry, fisheries, energy, mining, construction and services, “to promote the economic and social development of both sides”.
It also proposes enhanced cooperation in some fields, such as legislation, as well as mechanisms for consultation and coordination on international issues.
“China does not desire to be perceived as a competitor but as a friend and a partner, for that reason it maintains a low profile in the region. The PRC is looking for strategic partners … The countries of choice are those prepared to intensify collaborative relations,” Miranda states.
Among those designated as strategic partners are Brazil, the main trading partner in the region and one of the eight Portuguese language countries.
In the wake of Chinese President Hu Jintao’s recent visit to Brazil, major investments are expected in the coming months, especially in the oil, mining and steel sectors, strategic for maintaining high growth rates.
The two presidents signed a joint action plan for the 2010-2014 period, covering 11 areas of cooperation, among them agriculture, science and technology, industry and culture. (macauhub)