China / India/ Russa (ASIA) – Latin America News Feast with a dash of US for dessert

My daily news radar (online subscriptions / searches) for all that is China – South America went off like wild fire today. Here’s some articles worthy giving a read.

Article 1: Russia Lends Venezuela $4 Billion in Return for Oil Projects - By Daniel Cancel of Bloomberg News

Russia agreed to lend Venezuela $4 billion through 2013 for defense spending in return for gaining access to heavy crude and offshore gas fields in the South American country.

Russia’s OAO Rosneft and OAO Gazprom signed a cooperation accord with Venezuelan state oil company Petroleos de Venezuela SA late yesterday at a ceremony in Caracas led by President Hugo Chavez and Russian Deputy Prime Minister Igor Sechin.

“We’re working on large-dimension projects from oil, gas and petrochemicals to finance, banking and trade,” Chavez said on state television.

Click here to read the full article direct from the Bloomberg

Article 2 = China’s JAC Motors to build plant in Brazil - By Vivian Pereira and Brad Haynes of Reuters News

To Note:
* 80 pct of capital will come from local SHC Group
* Government driving up the cost of imported carsBy Vivian

Pereira and Brad HaynesSAO PAULO, Oct 7 (Reuters) – The Brazilian operator of China’s JAC Motors brand announced a 900-million-real ($510 million) investment to build a factory producing affordable cars in the world’s No. 4 auto market.

JAC Motors will provide 20 percent of the capital, with the rest coming from the local SHC Group run by businessman Sergio Habib, SHC said in a statement on Friday.

The plant in Bahia state, expected to produce 100,000 vehicles annually beginning in 2014, will be the second producing Chinese-branded cars in Latin America’s largest economy, where authorities are pushing up the cost of imported cars.

Click here to read the full article direct from the Reuters News

Article 3: Friction between China & Bolivia

Bolivian energy minister alleges deception by Jindal Steel in big iron ore mining deal, courtesy of the Associated Press via the Washington Post

LA PAZ, Bolivia — A senior Bolivian official is threatening to end the government’s contract with India’s Jindal Steel & Power Ltd. over its alleged failure to meet investment commitments in a huge iron ore mine.

Energy Minister Jose Luis Gutierrez says Jindal deceived Bolivia in failing to honor its end of the biggest mining investment of President Evo Morales’ nearly six-year tenure.

Click here to read the full article direct from the Associated Press via the Washington Post

Article 4 = Ecuador firm wants to sell rice in the name of Gandhi - By Maneesh Chhibber of the IndianExpress.com

An Ecuador-based company has attempted to use the name and photograph of Mahatma Gandhi for marketing its rice. But an Indian lawyer has challenged the move before the Trademark Office of Ecuador. The case is scheduled to come up for hearing tomorrow.

According to Lalit Bhasin, who is also president of the Society of Indian Law Firms, the owner of the Ecuadorian company, Valverde Munoz, applied for grant of trademark for the name and label of “Arroz Gandhi” (Arroz means rice).

Click here to read the full article direct from IndianExpress.com

Article 5: Mitt Romney on Mexico, China and defense – By Dr. James M. Lindsay and courtesy of CNN News

Dr. James M. Lindsay you would think knows about the topic, as CNN makes a special point to note — Dr. James M. Lindsay is a Senior Vice President at the Council on Foreign Relations and co-author of America Unbound: The Bush Revolution in Foreign Policy, and whom writes his own blog, which you can access by clicking here.

By James M. Lindsay, CFR.org

Mitt Romney has taken exception to Rick Perry’s comment over the weekend that he would consider sending American troops into Mexico to help end the drug war raging there. Romney told the New Hampshire Union Leader that Perry’s suggestion is “a bad idea:”

Let’s build a fence first, and let’s have sufficient border patrol agents to protect it. And if the Mexican government wants us to help it with logistics, intelligence, satellite images, I’m sure we can provide the sort of support we provided in Colombia.

You can expect to hear more about Mexico at next Tuesday’s GOP debate. If Romney makes the Colombia comparison again, he probably should explain what the United States did there. Most people don’t know.

Click here to read the full article direct from CNN

Commentary: U.S. needs bigger thinking on Latin America

ANDRES OPPENHEIMER of the Miami Herald and CNN Español discusses US Foreign Policy towards Latin America

Note the author of this blog (me) does not always agree with what Mr. Oppenheimer says, but his article no less merits a quick read.  Some major points which any reader giving this a quick skim should note –>

1/ The Obama Administration has left the post of Head Latin American affairs vacant for 5 months.  So much for making good on promises back in 2008 to forge closer ties with the region… Big disappointment here, but not any worse or better than the disappointment / let down his predecessor Bush Jr also produced.  It seems the last President to care at all about the region was Clinton who did more than organize summits… He laid the foundation for FTA’s with countries in the region via NAFTA

2/ Obama did not visit Brazil, the growing powerhouse and member of the BRIC club until 3 years into his presidency. When he did visit, he received nothing but criticism for going through with the official visit between the heads of state of the Western Hemisphere’s two largest economies… because the visit happened to coincide with start of Western Military efforts in Libya. For the US media which pointed the finger at Obama, shame on you, the President does not physically need to be in the United States to be “Commander and Chief,” especially for an internationally organized, and initially French lead military mission.  For Obama, shame on you too! It took you three years to visit Brazil!  I think for Brazilians this is an obvious insult, but even for the rest of South America (and Latin America as a whole), Obama, Bush Jr. and the United States… well… Latin America is feeling a bit as if they are being ignored.  One thing is certain – China is not ignoring Latin America, nor is India, Russia or even small players like Singapore which is investing to expand the Panama Canal.  

3/ As Ray Walser,  Senior Policy Analyst for Latin America at The Heritage Foundation very appropriately points in a 2009 publication “U.S Policy toward Latin America in 2009 and Beyond”  From 1996 to 2006, total U.S. merchandise trade with Latin America grew by 139percent, compared to 96 percent for Asia and 95 percent for the European Union. In 2006, the U.S. exported $223 billion worth of goods to Latin American consumers(compared with $55 billion to China). Fifty-one percent of U.S. energy imports originate from Canada, Mexico, Venezuela, Ecuador, Colombia, and Brazil.

Excerpt from Oppenheimer’s article –>

U.S. diplomatic ties with Latin America, which have been in limbo for months, got a small boost last week when President Barack Obama nominated Roberta Jacobson as top State Department official in charge of Latin American affairs. But that alone will not do much to revert the gradual loss of U.S. clout in the region.

Granted, the career diplomat gets high marks from almost everybody in Washington’s small world of Latin American affairs specialists. Unlike her predecessor Arturo Valenzuela, a political appointee whose nomination in 2009 was blocked for several months by Conservative republicans, the Senate is expected to easily confirm her nomination.

Among the most urgent issues Jacobson would have to deal with would be the long-stalled U.S. ratification of the free trade deals with Colombia and Panama, the escalating violence in Mexico, and the April 2012, 34-country Summit of the Americas in Colombia.

On a wider spectrum, she would have to find new ways to improve ties with the region at a time when China has eclipsed much of the previous U.S. economic influence in South America’s commodity producing countries.

Click here to read Oppenheimer’s full article via the Kansas City Star

India Eyes Latin America – Latin Business Chronicle

Why India can and should become a counterbalance to China in Latin America.

Indian Prime Minister Manmohan Singh and Brazilian President Dilma Rousseff in a bilateral meeting, on the sidelines of BRICS Summit, at Sanya, Hainan, China on April 14, 2011. (photo: Indian PM's Office)

BY JAIME DAREMBLUM of the Latin Business Chronicle

The competition between China and India — the world’s largest dictatorship and the world’s largest democracy — will be a defining feature of 21st-century geopolitics. Because China opened its economy more than a decade before India did, the Middle Kingdom has a clear head start in the global battle for economic influence. Yet the South Asian giant is rapidly gaining ground on its northern neighbor, and over the long term its democratic system seems far more stable than the autocratic Chinese model. When assessing U.S. grand strategy in Asia, American policymakers view India as an important counterweight to China. Closer to home, India may also serve to balance Chinese economic clout in Latin America.

Click here to read the full article direct from Latin Business Chronicle

James Baker III: China’s Rise No Threat

HOUSTON, March 24, 2011 — Former US Secretary of State James Baker III under President Ronald Reagan receives an award from the Asia Society and argues in his speech that American fear-mongering about China is “dangerously wrong” at Asia Society Texas Center’s 2011 Tiger Ball. (12 min., 24 sec.)

Also special thanks to http://wanderingchina.wordpress.com/ for first bringing this video to my attention.

BBC Documentary: “The Chinese Are Coming” (Part 1 and 2)

Part 3 and 4 will be uploaded tomorrow.

All courtesy of the BBC

Analysis: China – Taiwan – Central America

Analysis: Taiwan’s Central American allies expand China ties

By Mica Rosenberg and Alex Leff
SAN JOSE, Costa Rica | Thu Dec 30, 2010 11:16am EST

(Reuters) – Friendlier ties between Taiwan and China are allowing Central American nations to deepen economic links with the communist giant, increasing Chinese influence in a region dominated by the United States.

Central American businesses say the isthmus has been held back by its long support of Taiwan, a self-ruled island claimed by Beijing as part of China, denying the banana and textile exporting countries free access to the world’s No. 2 economy.

The region has been torn between Taiwan’s generous aid and the promise of doing business with Beijing, enviously looking on while bigger economies like Brazil, Chile and Peru steadily increase their shipments of raw materials to China.

Costa Rica made the surprise move of breaking off its decades-long relationship with Taiwan in 2007, now only recognized by a handful of small countries.

El Salvador, Honduras, Nicaragua, Panama and Guatemala say they have no immediate plans to abandon Taiwan, but are worried they will be left behind after Costa Rica agreed to a free trade deal with China in April that lawmakers aim to ratify in 2011.

[...] Click here to read the complete article direct from Reuters

BRIC Love; Worthy reads about China-Brazil/Latam & India-Latam

1. China Investments: Brazil Top Focus

Brazil and natural resources are the main focus for China’s investments in Latin America writes Kevin P. Gallagher

China’s foreign investment into Africa has been generating a great deal of controversy. Some argue that China is becoming the new colonial power over Africa, others see China as a key source of foreign exchange that may finally help spur long-run economic growth in Africa [...click above to access the full story].

2. India Exports to Latin America

Minister of State for Commerce and Industry Jyotiraditya Scindia has emphasised the need for a shift in export from northern hemisphere to southern hemisphere in line with south-south cooperation. He said that while advanced nations would show an import growth of around 0.9-1 per cent in future, developing economies would exhibit an import growth between 4.5 and 5 per cent.

Mr. Scindia was speaking at a function organised by the Federation of Indian Export Organisations here on Tuesday to present the Niryat Shree and the Niryat Bandhu awards 2008-09. The awards honour outstanding exporters, export promotion councils, commodity boards, export development authorities, banks and other agencies.

Highlighting the potential and complementaries of economies between India and Latin America, the Minister said India needed to augment its exports to Latin American countries as these were vibrant economies. “The government will chalk out a strategy to facilitate exports and investment after an in-depth study which will be commissioned shortly,” he added [...click above to access the full story].

David Lowell, perhaps the greatest treasure hunter in the world

David Lowell - Bloomberg

In the snake-infested jungle of southeastern Ecuador, the American explorer David Lowell found himself sliding over a waterfall and heard his head bounce off a rock “like a melon being hit by a hammer,” he says.

Lowell was 72 and prospecting for copper that day in May 2000. He stepped into the slippery streambed for a vantage point free of vipers and vines. A broken rib and throbbing head diverted him to a nearby hamlet in search of help.

“There was one man in the village who was a combination chiropractor and mortician,” Lowell says. “We decided to just buy a little tin of liniment with the picture of a dragon on it.” The expedition carried on.

In the clear water of the stream, Lowell saw enough to help him find one of South America’s richest copper deposits. This May, a joint venture of Chinese state-owned companies paid $652 million to buy Lowell’s partner in the exploration, Vancouver- based Corriente Resources Inc. Lowell kept a stake there for himself, though local opposition has prevented mining.

In a career spanning six decades and 44 countries, Lowell has made 14 major discoveries, including the world’s largest copper deposit in Chile. He found treasures where others detected nothing worth mining. Lowell revolutionized exploration and unearthed metals that helped the U.S. build the world’s largest economy. He also made investors billions.

Click here to read the entire article direct from Bloomberg

Wise words, from wise men

Seven Sages - Courtesy of Wikicommons

After reflecting on my walk home today of a few potential pieces I was considering posting, I decided instead to share with the readers of CSA some blogs I believe to be worth following.  These blogs are written by fellow globally minded, intelligent, and wise individuals.

Inca Kola News – Otto Rock (his pseudo name), is wise man #1.  He’s a British national / mining analyst / linguist / comedian / good person, who lives and breaths South America.  He’s far more attune with the country of Peru and the greater South American region than I can ever hope to be.  If you want a English language view into South American politics and economics this is site you you must check out.

Vipo Asia – Written by Mr. Calipe Chong, who is also the owner and founder of Vipo Asia, a Suzhou, China based company which provides a valuable service for small to medium sized businesses throughout North America and Europe who want to do business with China.  Calipe is a honest man of integrity from Singapore, who provides fascinating views on topics ranging from Chinese culture, the role of government, China’s place in the world and more.  These views don’t come from books, they come from his 30 + years of experience working in Singapore, China, the US, Puerto Rico and other places.

Wandering China – Bob Xiansheng’s (Mr. Bob), Wandering China Blog mainly collects articles and information from news sources based in three countries – China, Singapore and Australia. They are then presented with a palatable, easy-to-read synopsis.  Bob’s blog are the chronicles on the journey of understanding the imagination of China by overseas Chinese.  His views are insighful, beautifully written and magically logical. Bob is a 3rd generation overseas born Chinese (in Singapore), who currently resides in Melbourne, Australia .  As described on his blog, he was brought up with Western lenses and in fact considers himself  so westernized that he could hardly speak or read Mandarin. He has now rediscovered his roots and humbly shares his views with the world on Wandering China.

Transcending Culture Shock – Written by my good friend, Mr. Justin Calderon, whom I consider Shanghai’s guru on accessing, dissecting, and analyzing pan-Asian culture and geo-politics.  Justin has traveled in 13 countries and regions in the Far East and lived and worked in many of them for extended periods of time.  He is a passionate journalist who strives to understand the world with unbiased eyes.    In addition to this blog, you can also discover and learn about the incredible places he has traveled  by reading his travel blog, The Expenditioner.

Happy reading folks.

China’s Kerui Group chooses Peru as its base for greater South American market

President of Shandong Kerui Group Holding Corporation, Yang Xian - Andina

Andina News Agency reports Chinese corporation Kerui Group has expressed its interest in entering the Peruvian market by setting up an oil and gas equipment plant with an initial investment of US$10 million.

This supports my long standing opinion that Peru is perfectly positioned geographically, politically and economically to emerge as “China & Asia’s gateway to South America.”

The President of Kerui Group Holding Corporation, Yang Xian, seems to agree.

“This venture into our market aims to meet oil equipment demands of countries such as Colombia, Ecuador, Venezuela, Bolivia and Brazil.”

“Politics and economic activity in Peru is better than in other Latin American countries such as Venezuela. We can strengthen our presence in Latin America from there, that would be our next task.”

Yang made these comments during the visit of Peruvian entrepreneurs to 3rd China International Petroleum and Petrochemical Equipment & Technology Exhibition (CIPEE) 2010 taking place in Dongying.

Currently around 50% of Kerui Group’s annual production is exported to U.S. and other countries such as Canada, Saudi Arabia, India, Russia, Kazajstán as well as other 30 countries in Middle East, Asia and Africa.  This marks their latest move to expand their market reach.