#China is increasing investment in #LatinAmerica,..including a new #canal through #Nicaragua.

posted Jan 30, 2013, 3:03 AM by Peter Joseph Moons

CHINA/LATIN AMERICA: CHINESE INVESTMENT IN CENTRAL AMERICA MAKES THE TRADING RELATIONSHIP EVEN MORE ONE-SIDED - Pulsamerica


Comments by Peter Joseph Moons:

Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua are increasing their trade with Chinese companies.  Among the new trading projects are ventures in oil, solar power, hydropower, and telecommunications including a satellite for a Nicaraguan company.  Much of the trade from Central America are agricultural products, which make the long journey back to China.  

This trade relationship fits China's paradigm: products and expertise flow from China outward, while foodstuffs, organic raw materials, minerals, and oil are sent to China.  Central America happens to have less raw materials to offer than South America, for example, so the trade is reciprocated in comestibles.

Of highlighted interest in Central America is China's interest in a trans-oceanic canal through Nicaragua, for which China inked a deal with the Nicaraguan government last year.  Long sought after, even before the advent of the Panama Canal, a 'Nicaragua Canal' -- if this dream comes true -- would compete with Panama's, possibly lowering costs for global shippers, and decreasing revenues for the Government of Panama, while increasing the same for Nicaragua...and China.

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