China and South America

Rio de JANEIRO, Nov. 17, 2009 (UPI) — Brazil and China have agreed to build military cooperation that will include development of joint defense industries, collaboration in science and technology, and personnel training.
http://www.upi.com/Business_News/Security-Industry/2009/11/17/Brazil-China-build-military-industry-ties/UPI-86341258474208/#ixzz2nh5Kbqgx
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China in Brasil & Argentina

7-10-13   While Chinese demand for commodities has fueled economies in Brazil and Argentina, it also has prompted unease and a backlash of sorts.

Common are complaints that neocolonial-style trade – raw exports going to China while higher-value Chinese imports flood local markets – is creating the kind of wealth that can dissipate eventually.

Without naming China, the Argentine Congress in December passed legislation that limits foreign owners to 2,470 acres and caps the total land area that can be owned by foreigners at 15 percent.

What’s more, political backlash and a lawsuit have killed Beidahuang’s deal in Rio Negro.

Brazil also is responding in kind. After several Chinese attempts to buy large tracts in 2010, Brazil’s attorney general last year used a 40-year-old law to make it harder for foreigners to buy land. Lawmakers in March will vote on a bill that would codify those restrictions.

Jorge Rulli of the environmental organization Grupo de Reflexion Rural said the Argentine land law doesn’t stop Chinese companies from buying into local companies that then do their bidding.

He cited a long-reported deal between Beidahuang and Cresud, Argentina’s largest soybean producer. But a Cresud representative told The Washington Times that there is “currently no deal” between the companies….

Thilo Hanemann, research director at the Rhodium Group, an investment advisory and strategic planning firm in New York, said political backlash against land deals has driven Chinese companies to shift strategies.

“They’re turning away from their obsession of ownership in these sensitive sectors and finding more flexible solutions to get what they need,” he said. “They’re now seeking small stakes in companies or buying into long-term supply contracts, processing plants and infrastructure.”   http://www.washingtontimes.com/news/2012/feb/1/china-plants-bitter-seeds-in-south-american-farmla/#ixzz2nhA0Mo75 

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China’s active involvement in Latin American geopolitics can be traced back to 2009. Chinalco, China’s largest mining company, signed a $2.2 billion deal with Peru to build the Toromocho mine and a $70 million wharf in the Callao port. Since then, Peru has sent 18.3 percent of its exports to China, making China Peru’s largest trading partner. China’s imports to Peru, however, rank second with 13.7 percent of the market while the United States holds first place with 24.5 percent.

China has the upper hand with the Latin American leftist countries in terms of infrastructure and technology. In 2009, Chinese telephone manufacturer ZTE played an instrumental role in assembling the first mobile phone in Venezuela known as “El Vergatario” (Venezuela slang for optimal). Former President Hugo Chávez introduced this new phone to low-income families making it the world’s cheapest phone ($6.99 for a handset). Additionally, China landed rail construction projects in Argentina and Venezuela and has become a major buyer of farm products and metal in South America. Between 2011 and 2012, China purchased nearly 58.02 million tons of soy from Argentina, up from 52 million in 2011 and 2010.

China has also maintained an active market with Brazil. Chinese oil company Sinopec and China Development Bank offered Brazilian oil company Petrobras a $10 billion loan in 2009 in return for hundreds of thousands of barrels per day. In 2011, three Chinese metal companies purchased Brazilian mining company Companhia Brasileira de Metalurgia e Mineracao.

China’s boldest move in the region is the possible construction of a massive canal in Nicaragua
 http://oilprice.com/Geopolitics/South-America/US-and-China-Battle-it-Out-for-Latin-America.html

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Petrobras Oil

6-14-13  Petrobras has made the largest-ever crude oil discovery in Brazil as estimates for the Libra field are doubled to as much as 12 billion barrels, but the company’s shares are plunging on the news because it’s drowning in debt and the discovery means more spending.

Analysis: On 23 May, Brazilian regulators doubled the estimate for Petrobras’ Libra field to 12 billion barrels, which would normally be a cause for celebration. However, the same day, Petrobras shares on the New York Stock Exchange fell 5.3% to a new low. A 70% stake of Libra will be auctioned off in October, and the winning bidder will determine how much Petrobras ends up profiting from this doubled estimate. Petrobras has the clear disadvantage in this deal because foreign companies will be able to borrow more easily and would give the government more profit in order to win the bid, further lowering Petrobras’ end take. It’s been a long and painful journey for Petrobras since its stocks soared 49% in the spring of 2008 over the discovery of billions of barrels of oil below the salt in the deep-water Santos Basin. Since then its stocks have plummeted and investors have been discouraged at the outlook as spending rises exponentially and revenues take hits over fuel price caps. 

 

Recommendation: The Libra field is an amazing prospect, but Petrobras is in trouble. It will have to pay a multi-billion-dollar government signing bonus   http://oilprice.com/Geopolitics/South-America/BRAZIL-Petrobras-Discoveries-Mean-More-Debt.html

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China & Peru

9-22-13    Jau Kin Siu, chairman of the Sociedad Central de Beneficencia China in Peru told me that there were three reasons for the clothes-burning incident. The clothing industry in Peru has been greatly affected by the Chinese imports. Some clothes traders try to report low prices at the customs and bring down the price of Chinese clothes. And dealers have suffered losses due to smuggling from neighboring countries.

In fact, Peru has strict restrictions on imported Chinese clothes. Although China and Peru have signed a free trade agreement, the clothing industry is excluded from the agreement.

Even so, Peru has felt the pressure from China’s clothing industry in recent years. It is considering starting an anti-dumping investigation into almost all clothing and textile products.

The impact of Chinese clothes on Peru reflects the tensions between China’s rise and global development, especially the development of emerging economies.

Peru’s official data shows that from 2005 to 2012, more than 14,000 clothing and textile factories were closed and over 94,000 people lost their jobs. These  were mostly family workshops and unable to compete with their Chinese counterparts at both national and international levels.

Similar things have happened in other South American countries. Made-in-China goods have been encountering more obstacles when entering the South American market and become the target of anti-dumping investigations.

Over the past decade, the economic relations between China and Latin America have been developing rapidly. Data from the UN Economic Commission for Latin America and the Caribbean shows that China invested more than $15 billion in Latin America in 2010, which was twice the amount between 1990 and 2009, and the investment scale is still expanding.

http://www.globaltimes.cn/content/812970.shtml

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If America can prove the law that is the foundation of life, it will mean that every nation and every world and every system of worlds can do the same. Thus by individual efforts do men and nations carve a cosmic destiny. -Messenger ECP, see http://books.google.com/books?id=IzbeJFiICMcC&pg=PR8&dq=clare+prophet+america+prove+foundation&hl=en&sa=X&ei=TbyvUqyNGNDqoASR2oKACg&ved=0CD0Q6AEwAA#v=onepage&q=clare%20prophet%20america%20prove%20foundation&f=false
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Every system of worlds, planetary or starry body that has ever dissolved–whatever the apparent or scientific reason–has collapsed from within due to the withdrawal of the love-charge from the sun-center (within itself). -Saint Germain, see http://books.google.com/books?id=ys4_cgAlR6sC&pg=PA342&dq=clare+prophet+dissolved+collapsed&hl=en&sa=X&ei=vruvUr07l-2gBNewgHg&ved=0CDUQ6AEwAQ#v=onepage&q=clare%20prophet%20dissolved%20collapsed&f=false
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