March 24 2015 image description
by: jmhumire 0 Comments

Is It Time to Rebalance China’s Latin American Portfolio?

China’s Prime Minister Li Keqiang recently told delegates at the National People’s Congress the country’s economy would grow at about 7 percent this year. The projection reflects a slowdown as China works to consolidate its gains over the past decade and build a stronger, more modern service and information-based economy. This is a good time to review China’s portfolio in Latin America.

Prime Minister Li’s report comes amid good news as China overtook the United States in inbound foreign direct investments (FDI) for the first time since 2003. With an impressive $128 billion invested in China and Hong Kong, the two placed first and second, while the U.S. came in third.

Equally important is China’s out bound investments, which set records in 2012 with the U.S. as the primary recipient in energy, transportation and the financial services. The countries of Asia, Africa and Latin American also benefited from inflows of Chinese capital.  In January, China announced its intention to invest $250 billion in Latin America over the next decade. While the figure is promising, the nature and distribution of investments is far more complicated…. (more…)

January 14 2015 image description
by: jmhumire 0 Comments

As Venezuela sinks, Ecuador rises as chief anti-Yankee antagonist

While Venezuela sinks as the oil market bottoms out, infrastructure crumbles, food shortages abound, the murder rate soars and civil unrest simmers, Ecuador is quietly rising to lead the charge against U.S. interests in Latin America.

It’s no secret that Nicolas Maduro, the track suit-wearing, former bus driver and Hugo Chavez protégé is failing to fill El Comandante’s shoes since he died of cancer in 2013.

Complicating his grip on Caracas, according to Citi Research, Venezuela needs oil at least $151 a barrel to balance their budget. Unless oil prices dramatically rebound, his regime won’t last much longer…. (more…)