![]() That may not be the route to sustained growth. More broadly, China has served to reinforce Latin America’s specialisation in commodities. The price is high: the money is tied to 15 infrastructure deals in which Chinese firms face no competition. Last year Cristina Fernández de Kirchner, Argentina’s president, negotiated a currency swap with China, as an alternative to settling her dispute with foreign bondholders. But both have pitfalls.Īn obvious one is sweetheart deals. For a region with huge shortcomings in infrastructure, China’s investment, like its trade, is potentially a boon. Many governments in Latin America have embraced the Chinese dragon as a welcome alternative to the United States and the conditions imposed by the IMF and the World Bank. Mr Li’s trip suggests a new interest in the business-minded countries of the Pacific Alliance. Apart from Brazil, the money has mainly gone to Venezuela, Ecuador and Argentina, where it has helped to sustain left-wing governments. The $22 billion lent last year outstripped credits from traditional multilateral development banks, according to China-Latin America Economic Bulletin, published by Boston University. While early Chinese investment was almost wholly in oil, gas and mining, it is broadening out to involve more companies and industries, including food and agriculture, manufacturing and, above all, infrastructure. In January President Xi Jinping said that Chinese companies would aim to invest $250 billion in Latin America over the next ten years, compared with a previous total stock of $99 billion. Brazil’s exports to China slumped by a third in the first quarter of this year compared with the same period in 2014.īut Chinese investment and loans are set to carry on growing. China’s slowdown has prompted a steep fall in commodity prices, and thus the value of Latin America’s exports. Now economies are slowing on both sides of the Pacific. This saw explosive growth in trade, as China gobbled up Latin America’s minerals, oil and soyabeans while exporting its manufactures. His destinations and the projects both point to a maturing of China’s relationship with Latin America. Mr Li came armed with proposed investments and loans that could total up to $103 billion in Brazil alone (see article). Li Keqiang, China’s prime minister, signed an agreement for a feasibility study for the railway during an eight-day trip through South America that began on May 18th in Brazil and will take him to Colombia, Peru and Chile. Built for booming rubber exports, the 367km (228-mile) line from Porto Velho in the heart of the Brazilian Amazon to the Bolivian border was rendered obsolete by new Asian plantations almost before it opened in 1912.Ī century later a plan for a much longer railway across the Amazon, from Brazil’s Atlantic coast to Peru, is among a sheaf of infrastructure projects that China is offering to finance in Latin America. Latin America needs to be more hard-headed with its big new partnerĭUBBED “Mad Maria”, the Madeira-Mamoré railway was said, with only some exaggeration, to have cost a life for every sleeper laid. Please contact our Customer Service Hotline at 6369 5588 (7*24) if you require any assistance.A Chinese scheme to build a railway across South America, crossing the Amazon rain forest, moves a step closer as Peru agrees to study the plan. (3) Please do not deposit stale-dated or post-dated cheques into the Cheque Deposit Box. ![]() Please provide the payee's full name as per bank's record, payee's account number and contact number. Please cross out the word “Bearer” on the cheque if it has to be paid only to the intended payee. Please cross the cheque if it is not meant to be encashed. Please provide the payee’s full name as per bank's record, date of issue, amount in words and numerical (which tally) and ensure the issuer's signature is completed. USD10/SGD15 per cheque book + overseas postage fee where applicable If you deposit the cheque before cut-off time, the fund will be credited to your account in the next working day (after 2:30pm) If you deposit the cheque after cut-off time, the fund will be credited to your account in the next two working days from date of deposit (after 2:30pm). No clearing on Saturdays, Sundays or public holidays Please refer to the table below for the cut-off time.Ĭheque Received Cut-off Time (excluding Public Holidays)
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