China is Latin America’s second largest trading partner, and Latin America is China’s seventh largest trading partner. Official statistics show that the proportion of Latin America's exports to China increased from 1 in 2000 to more than 10 in 2018, while the proportion of China's exports to Latin America also increased from 2 to 18.
Today’s trade between China and Latin America covers many areas. Although minerals still account for a large part of Latin America’s exports to China, other areas such as agricultural products are quickly catching up.
At the China-Latin America International Capacity Investment Cooperation Forum held recently, many industry insiders mentioned that the industrial transformation and upgrading of Latin American countries provides cooperation opportunities for Chinese companies, and they particularly look forward to more cooperation between the two sides in production capacity. spark.
As we all know, Latin America has become an increasingly important destination for China’s foreign direct investment. Zhang Zhenxi, founder of the "China Going Global" platform and executive partner of Quanya Law Firm, focused on the investment of Chinese companies in public infrastructure: "At the beginning of 2018, China invited several Latin American countries to join the 'Belt and Road Initiative' ' Initiative, I'm not surprised, because there are already more than 100 Chinese-invested civil engineering projects in these countries, with a total amount of up to 80 billion US dollars. The 'One Belt, One Road' initiative seems to bring a once-in-a-lifetime opportunity to Latin America - —Further promote the long-awaited infrastructure construction in Latin American countries.”
In fact, many key projects have been launched in different countries, such as the US$2.47 billion reconstruction project of Argentina’s Belgrano freight railway; The US$2.2 billion Brazilian ultra-high voltage transmission project (second phase); the total investment in Peru reached US$10 billion, including Chinalco’s US$1.3 billion expansion project of the Toromoco copper mine, and COSCO Shipping US$2 billion port projects invested in Peru and the Pacific Coast, etc.
Javier Guiletta, head of the Economic Prospects and Global Liaison Department of the Ministry of Multilateral Affairs and Human Rights of the Mexican Ministry of Foreign Affairs, said that Mexico is a relatively stable economy in Latin America, with a consistently low inflation rate and an exchange rate Stable, exports have grown steadily, "especially the growth rate of exports to China has reached double-digit levels."
Guiletta specifically mentioned that the export value of some high-tech products in Mexico has accounted for the entire GDP is about 27%. “We hope to occupy a larger proportion in the import and export of high-tech and service industries in the future. In order to achieve this, we need better partners to ensure that we can make further progress in these fields. I think this is very important for Chinese enterprises. It is a great development opportunity. In addition, we have easy access to different markets in the Pacific and Atlantic regions. Mexico is an open economy and has signed 13 free trade agreements with more than 50 countries. Trade has covered more than 1.3 billion consumers.”
Javier said that foreign investment in Mexico reached US$26 billion in 2019. Today, 15 cities are being built on the Yucatan Peninsula in southern Mexico. The construction projects not only include infrastructure such as ports, airports, and highways, but also include the construction of oil and crude oil pipelines. The Mexican government has selected 147 infrastructure projects from more than 600 construction projects and is preparing for cooperation in the public and private sectors. According to him: "The total construction value of these 147 projects is expected to exceed US$42 billion, which can further improve the economy of our entire country. I very much hope that interested Chinese investors will participate in this project."
In recent years, cooperation in the agricultural field has increasingly become a highlight of China-Latin America cooperation.
Luis Monsalve, Colombian Ambassador to China, said: "We understand that China's demand for agricultural products is huge. China has less land and more people, and Colombia complements China's agriculture. We There is still a lot of land to be utilized. In fact, many agricultural products from Latin American countries are exported to China, and the export volume is also increasing year by year. Currently, 90% of Colombia’s agricultural exports are related to edible oil, and our edible oil is related. The company has a good cooperative relationship with China.
In the future, we also hope to export more meat products, tropical fruits, coffee, etc. to China and expand the types of agricultural products exported. "
Julio Flores, Minister Counselor of the Embassy of El Salvador in China, said that Latin American countries still have many investment opportunities, especially in the agricultural field. He pointed out: "We have very fertile land. Farmland and land. In our country, coffee is a very important agricultural product and has entered the international market. Chinese companies can take advantage of this and directly connect with our coffee producers. ”
Julio said that El Salvador’s production methods are relatively traditional and do not incorporate high-tech factors. “Many high-tech enterprises in China can help us increase productivity and improve the quality of agricultural products.” China has very rich experience in dealing with the impact of climate change on agriculture, and hopes to strengthen cooperation with China in this field. ”
Cui Min, vice president of the China Agricultural Products Market Association, said that the arable land area of ??China and Latin American countries actually accounts for 10% of the world’s arable land area, but China’s population accounts for 20%, while Latin American countries only account for 10% of the world’s arable land area. Accounting for 10. Such agricultural resource allocation and population layout determine that China and Latin American countries have great potential for cooperation. At the same time, both sides have advantages in market demand, resource endowment, product structure, etc., and are relatively complementary.
Cui Min believes that for a long time, the trade of bulk commodities and primary industrial products has occupied an important position in China-Latin America cooperation. This cooperation model has actually made an indelible contribution to the development of China-Latin America economic and trade, providing She said: “The current general improvement in the living standards of Chinese residents will continue to promote the trade of agricultural products between China and Latin America and enhance and expand the cooperation space between China and Latin America. China has a huge population of 1.4 billion. As people's incomes increase, the growing middle class has higher and higher requirements for quality of life and agricultural and animal husbandry products. China is attracting more and more agricultural products from Latin American countries. Like avocados from Mexico, cherries from Chile, soybeans from Brazil, beef from Argentina, etc., the food on the Chinese table has become more nutritious and of better quality. "
However, Zhang Zhenxi admitted that China's investment in Latin America has not been smooth sailing. She pointed out: "In 2017, the Venezuelan government defaulted on its US$24 billion debt to China. In fact, in the 12 years since 2007, China has provided Venezuela with approximately US$65 billion in loans for projects such as oil refining, gold mining, and railways. History teaches us that measuring political risk is complex and highly nuanced, involving a deep understanding of local political, diplomatic and social issues. Before launching any major projects in the future, the Chinese government will conduct a more thorough assessment and conduct more thorough due diligence on commercial and financial factors in addition to political factors, which will benefit both parties. ”
In view of the fact that the investment amount of “One Belt and One Road” is generally large and the debt and amount involved are unprecedented, Zhang Zhenxi suggested that Chinese investors should seriously consider the benefits of cooperation with international institutions such as the World Bank and the Asian Development Bank. and significance. “They are very experienced in international projects, so as far as China is concerned, combining their respective strengths will achieve the best results. ”
Ma Shulong, assistant general manager of Beijing Construction Engineering Group International Engineering Co., Ltd., said that Latin America is still a blue ocean for Chinese companies to explore. Compared with Africa and Asia, there are still very few Chinese companies in Latin America. , the competition is not that fierce, and the local market demand and market environment are very good.
Ma Shulong believes that Chinese companies face two basic problems when they come to Latin America. One is the lack of information. Symmetrical and unfamiliar with Latin American countries; secondly, cultural habits are different and the documentation process is relatively long. He said: "As a state-owned enterprise, we must fulfill our social responsibilities and lead Chinese private enterprises and Chinese partners to sail abroad and enter the world together." Latin America. ”