There was a noticeable jump in the annual Chinese foreign direct investment (FDI) in Latin America and the Caribbean (LAC) in and since the year 2010. While the annual Chinese FDI was around $5 billion before 2010, it has gone up to $72.5 billion in the last seven years. In the year 2017, China was the largest investor in the LAC in terms of mergers and acquisitions deals of around $18 billion dollars. Between 2005 – 2017, Brazil, Peru, Argentina, Ecuador and Venezuela were top five LAC destinations for the Chinese FDI. Some of the largest acquisitions include Repsol in Brazil (Oil industry), Las Bambas Mine in Peru (Mining industry), Petrogal Brasil in Brazil (Oil industry), Bridas in Argentia (Oil industry), etc. Within the Caribbean, the Alpart Alumina Refinery in Jamaica was sold for US$299 million to the Jiuquan Iron and Steel Company (JISCo). Trinidad & Tobago, along with other Caribbean nations have signed up for the famous “Belt and Road Initiative” of the People’s Republic of China (PRC). T&T has grown closer to the Chinese firms since the closure of the Petrotrin Refinery. It has already committed to the China Harbour Engineering Corporation (CHEC) to build a $500 million dry-dock facility in La Brea, the same company which financed US$730m for a road to connect the Jamaican capital Kingston to the tourist spot of Ocho Rios. This is apart from other signature projects in T&T like substantial positions in the telecom sector, gifts of motorcycles for the police, new Chinese buses, the Brian Lara Cricket stadium, National Academy of Performing Arts along with the Southern Academy of Performing Arts, the South terminal of the Piarco International Airport and the Couva Children’s Hospital. The Dominican Republic has cut-off diplomatic ties with Taiwan at China’s behest. In return, they expect around $3 billion dollars in financing. The China Civil Engineering Construction (CCECC) already has an office in Santo Domingo to purportedly build the northeast Dominican Republic – Haiti railway. 2.Identify the top three countries and industrial sectors where the PRC has focused their investments in the LAC region. Have these countries and industries benefited from Chinese investment? Back up your response with verifiable facts.
There was a noticeable jump in the annual Chinese foreign direct
investment (FDI) in Latin America and the Caribbean (LAC) in and since
the year 2010. While the annual Chinese FDI was around $5 billion before
2010, it has gone up to $72.5 billion in the last seven years. In the year 2017,
China was the largest investor in the LAC in terms of mergers and
acquisitions deals of around $18 billion dollars. Between 2005 – 2017,
Brazil, Peru, Argentina, Ecuador and Venezuela were top five LAC
destinations for the Chinese FDI. Some of the largest acquisitions include
Repsol in Brazil (Oil industry), Las Bambas Mine in Peru (Mining industry),
Petrogal Brasil in Brazil (Oil industry), Bridas in Argentia (Oil industry),
etc. Within the Caribbean, the Alpart Alumina Refinery in Jamaica was sold
for US$299 million to the Jiuquan Iron and Steel Company (JISCo).
Trinidad & Tobago, along with other Caribbean nations have signed up for
the famous “Belt and Road Initiative” of the People’s Republic of China
(PRC). T&T has grown closer to the Chinese firms since the closure of the
Petrotrin Refinery. It has already committed to the China Harbour
Engineering Corporation (CHEC) to build a $500 million dry-dock facility
in La Brea, the same company which financed US$730m for a road to
connect the Jamaican capital Kingston to the tourist spot of Ocho Rios. This
is apart from other signature projects in T&T like substantial positions in
the telecom sector, gifts of motorcycles for the police, new Chinese buses,
the Brian Lara Cricket stadium, National Academy of Performing Arts along
with the Southern Academy of Performing Arts, the South terminal of the
Piarco International Airport and the Couva Children’s Hospital. The
Dominican Republic has cut-off diplomatic ties with Taiwan at China’s
behest. In return, they expect around $3 billion dollars in financing. The
China Civil Engineering Construction (CCECC) already has an office in
Santo Domingo to purportedly build the northeast Dominican Republic –
Haiti railway.
2.Identify the top three countries and industrial sectors where the PRC has focused their
investments in the LAC region. Have these countries and industries benefited from
Chinese investment? Back up your response with verifiable facts.
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