The Chinese Dragon Sweeps Through Latin America

By Jaime Daremblum

Any U.S. policymakers who doubt the strategic and economic significance of Latin America should spend a few minutes chatting with their counterparts in Beijing.

Over the past decade, China has been on a wild spending spree throughout the Western Hemisphere — targeting Brazilian iron ore, Chilean copper, Peruvian zinc, Argentine soybeans, Venezuelan and Ecuadoran oil, Uruguayan meat, Bolivian lithium, and other economic resources. The Chinese have flooded the region with both investment and cheap labor (about which more later). They are funding construction of a hydroelectric plant for Ecuador, a satellite for Bolivia, and much else. Beijing already built a satellite for Venezuela, which launched in 2008, and a national soccer stadium for Costa Rica, which opened this year. In March 2010, the China National Offshore Oil Company announced that it was purchasing 50 percent of the Argentine firm Bridas, and Bridas subsequently bought a $7.1 billion stake in the Argentina-based Pan American Energy. In October, another Chinese energy giant, Sinopec, agreed to invest over $7 billion in the Brazilian operations of Repsol, a Spanish company.

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