China’s Foreign Direct Investment (FDI) in Latin America
Chinese FDI totaled $187.5 billion in Latin America in the period 2003 – 2022.
China’s average annual FDI was $14.2 billion between 2010 and 2019 but fell to $7.7 billion from 2020 to 2021, and then $6.4 billion in 2022.
Brazil is the largest recipient of Chinese FDI at 78.6 billion dollars, followed by Peru– 32 bn, Mexico-24 bn, Argentina-18 bn, Chile-16, Ecuador-4, Bolivia-3, Venezuela-2 and Colombia-1
FDI in electricity generation and transmission is an impressive $16.9 billion. Chinese companies own fully or partially 304 power plants in Brazil, which total 16,736 MW, or 10 percent of the national generation capacity. China Southern Power Grid’s ongoing acquisition of Italian Enel’s equity stakes in Lima’s electricity distribution will put 100 percent of Lima’s electricity in the hands of the Chinese company
Chinese President will inaugurate the Chancay port in Peru in November 2024. China has invested $3.6 billion in this deep-water mega-port. China’s state-owned COSCO will have exclusive operating rights of the port. The port will boost trade by reducing shipping time between Peru and China by ten days.
Chinese FDI totaled $187.5 billion in Latin America in the period 2003 – 2022.
China’s average annual FDI was $14.2 billion between 2010 and 2019 but fell to $7.7 billion from 2020 to 2021, and then $6.4 billion in 2022.
Brazil is the largest recipient of Chinese FDI at 78.6 billion dollars, followed by Peru– 32 bn, Mexico-24 bn, Argentina-18 bn, Chile-16, Ecuador-4, Bolivia-3, Venezuela-2 and Colombia-1
FDI in electricity generation and transmission is an impressive $16.9 billion. Chinese companies own fully or partially 304 power plants in Brazil, which total 16,736 MW, or 10 percent of the national generation capacity. China Southern Power Grid’s ongoing acquisition of Italian Enel’s equity stakes in Lima’s electricity distribution will put 100 percent of Lima’s electricity in the hands of the Chinese company
Chinese President will inaugurate the Chancay port in Peru in November 2024. China has invested $3.6 billion in this deep-water mega-port. China’s state-owned COSCO will have exclusive operating rights of the port. The port will boost trade by reducing shipping time between Peru and China by ten days.
Besides large-scale infrastructure projects, the Chinese moving into areas of innovation such as information and communication technology (data centers, cloud computing, 5G network), renewable energy, electric vehicles and agri-science
Source:
https://www.thedialogue.org/wp-content/uploads/2024/01/Emerging-Trends-in-Chinese-Foreign-Direct-Investment-in-LAC.pdf
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