Disussion: Global demand for tropical hardwoods

Here is one side: China Denies Plundering World’s Rain Forests

BEIJING — China on Tuesday denied accusations of plundering the world’s rain forests to meet booming demand for wood.

Environment groups say China is at the heart of a global trade for lumber it sells to markets in the United States and Europe and that much of its plywood exports comes from illegal logging.

Domestic demand from a fast-growing economy only adds to the problem, they say.

“As for the question that China’s large demand for timber assists illegal logging and smuggling from Asia, this statement has no basis,”State Forestry Administration spokesman Cao Qingyao told a news conference.

“The Chinese government consistently upholds and puts in practice collective international responsibility, opposing and cracking down on illegal logging cin illegal wood imports,” Cao said. “We have very strict import controls.”

Click here to read the complete article

Lets start a discussion.  If interested shoot me an email. bennett.reiss@linksinolatino.com

Reporting from Lima, Peru — Latam-China News Summary

Happy International Women’s Day to readers around the globe.

There’s been a spike in the past week or so of news articles pertaining to China – Latin America.  Beyond the ever changing dynamics of Sino-Latin American relations financial news media is increasingly questioning the sustainability of growth in Latin America.  Specifically in countries that are heavily dependent on commodity exports to China. Here’s a few of the major stories which caught my attention:

Latin America warned over China slowdown – Financial Times

Latin America’s economies have become increasingly resilient to global shocks but they have not prepared for a possible slowdown in China, according to the Institute of International Finance, which represents the global banking industry.

Most of the countries in the region, whose economic growth was expected to slow to 3.7 per cent this year from 4 per cent last year due to weakness in the eurozone, should use the present commodity super-cycle to undertake more serious reforms to improve productivity, said Ramón Aracena, IIF deputy director of Latin America.

Click here to read the complete article from the Financial Times

China’s Rise and Latin America: A Global, Long-Term Perspective – Carnegieendowment

Over the past decade, China has become an increasingly important economic partner for Latin America. But this trend must be placed in proper perspective. Even as trade and investment links between China and Latin America have grown, the United States and Europe are—and will continue to be—vital trading partners for the region. Moreover, China’s rise is only one part of a broader shift towards a world in which emerging markets have greater economic weight. Policymakers in Latin America need to view China’s growing influence within the context of both current economic patterns and long-term global trends.

Click here to read the complete article from the Carnegieendowment

Citi launches Latin America Trade Desk in China – BBR

Citi’s Global Transaction Services has launched its new Latin America Trade Desk in Shanghai, China, to serve as a link for Latin American clients to Asia.

The new trade desk will cater specific needs of importers and exporters, as well as market practices for trading between these two regions.

It will offer tailored suite of trade services and finance solutions, including access to Citi’s global trade network and local expertise through its branch network in over 40 countries in Asia and Latin America.

Click here to read the complete article from the BBR (Banking Services Review)

Commentary: China’s rising wages may benefit Latin America – Miami Herald via Kansas City Star

Good news for Latin America: wages in China, Vietnam and other Asian countries are rising faster than expected, leading growing numbers of multinational firms to move their manufacturing plants to Mexico and other countries closer to the U.S. market.

The Feb. 19 announcement by Foxconn Technology Group, which assembles iPads and other products for Apple, Dell, Nokia, Motorola and other firms in China, that it has raised pay for its workers by 16 to 25 percent was just the latest example of how fast Chinese salaries are rising. It was Foxconn’s third wage hike since 2010.

“More and more companies are telling us that wages are rising faster than they expected,” says Harold Sirkin, managing partner of the Boston Consulting Group, which recently published a study on China’s wages.

Click here to read the complete article

Latin America seen very dependent on commodities – Market Watch

SAO PAULO — Latin America must take steps to defend itself from a growing reliance on commodities and China, while currency appreciation is warranted given the economic improvements relative to developed markets, the Institute of International Finance said on Thursday.

“Growing dependency on commodities and China requires improving lines of defense against sharp and sustained terms of trade losses,” the IIF said in its latest regional overview.

The region’s improvements relative to developed economies “suggest that appreciation pressures on local currencies are to some extent warranted,” the IIF said. To cope, countries must improve productivity and reduce government spending deficits “so as to widen the scope for interest-rate cuts,” it said.

Click here to read the complete article from the MarketWatch

Latam growth speeding, reforms needed -IIF Reuters

RIO DE JANEIRO, March 8 (Reuters) – Economic growth in Latin America should speed to 4.5 percent in 2013 thanks to monetary stimulus and steadier global conditions, raising the risk of policy complacency, the Institute of International Finance said on Thursday.

Demand for the region’s raw material exports has also strengthened local currencies, highlighting the need for reforms to boost productivity and reduce government deficits, the IIF said in a report presented by managing director Charles Dallara.

“While stronger macroeconomic positions have bolstered Latin America’s resilience to external shocks, luck has been on the region’s side,” the report said. Higher commodities prices are bolstering the region’s economies, according to the report, but masking bad policy in some countries.

Click here to read the complete article from the MarketWatch

Ecuador-China sign first contract for “Mega Mine”

Reuters reports — Ecuador signs first large-scale mining contract

QUITO, March 5 (Reuters) – Ecuador’s President Rafael Correa on Tuesday signed the country’s first ever large-scale mining contract, which calls for Chinese-owned Ecuacorriente to invest $1.4 billion in the El Mirador copper project.

Ecuador has no mining industry to speak of and Correa, a U.S. trained economist, is eager to attract investment to tap the country’s big copper, gold and silver deposits and diversify the economy from its dependency on oil exports.

Correa is trying to reap lofty benefits from miners and negotiations with Ecuacorriente and Canada’s Kinross, which plans to develop the Fruta del Norte gold project, have taken much longer than initially expected.

The 21st century’s most important trade network – The Asia-Pacific triangle

Having followed, written about and participated in the growth of China – Latin America’s exchange over the past 10 years, I must say it is refreshing to see the increasing awareness around the globe of the growth of Asia-Pacific cooperation.  Every week news media around the world publish news and analysis pertaining not only to China – Latin America, but increasingly about the geopolitical triangle of the greater Asia-Pacific region.

Aljazeera added to the wealth today by publishing the transcript of a interview they conducted with former Peruvian Ambassador to China, and current Ambassador to the US - Harold Forsyth.  In the interview Aljazeera reporter Eddie Walshe discusses with Ambassador Forsyth his perspective on the growing importance of Asia-Pacific cooperation and more particularly, how Peru fits into the Asia-Pacific triangle of the Greater Asia region (with a special emphasis on China), North America and South America.

As someone who personally believes the growth of trade and exchange between nations of the Asia Pacific and the Americas (North & South) will be the most important network of exchange this century, I highly recommend giving it a read.

Click here to access Peru’s place in the triangle of Asia-Pacific security, published by Aljazeera

What people around the world define as the Asia-Pacific region varies widely, for your author (me) I consider it to include all nations, cultures and territories on both sides of the Pacific Ocean.  This means “Oceania,” despite being a region in itself must naturally be included.  It also tends to include India, because although India is usually not considered a “Pacific” nation, it is a major geopolitical power in this equation.

Within the Asia-Pacific region there is however a level of exchange and interaction which is far more significant when looking at the greater region as a whole — and that, in my opinion is the triangular interaction of North East Asia (China, South Korea, Japan), North America, and South America.  Of course, one could argue discounting Russia, India, Australia and the nations of SE Asia and leaves many players out of the equation. I only do so because their links to the America’s are relatively small when compared with China, South Korea and Japan.

Why is this triangular network so important you ask?  Let’s quickly review some facts which come to mind pertaining to a few specific categories — Economic output & International Trade, Commodity production/ consumption (energy, metals and agriculture), and geopolitical security

• The Asia-Pacific region includes the world’s three largest economies — The United States, China (PRC), and Japan.
• These three economies make up a large portion of global economic output, commodity consumption/production, and trade.
• In terms of commodity consumption & production you find within this triangle (to name a few):
• Top 5 iron ore producers – Brazil, China, Australia, India and Russia
• Top 4 iron ore consumers – China, Russia, Japan and South Korea
• A few of the top energy producers, Russia (#1), the US, China, Venezuela and ever more significant levels of energy production coming from Brazil and Canada
• The top 5 oil consumers – United States, China, Japan, Russia, and India
• The Top 5 copper producers – Chile, Peru, the US, China, Australia
• 3/5 of the top copper consumers – China, India & the US
• Major sources of precious metal production (Gold & Silver) Russia, China, Australia, Peru, Chile & the US
• Major sources of precious metal demand – China, & the US
• Major centers of global food production – Russia, the US and South America as a whole
• Major centers of food consumption – China, India, & the US
• Finally, the Asia-Pacific region includes many of the 21st century’s most potentially volatile geopolitical security issues. To name a few:
• US-China relations
• NE Asia which includes everything from
• The balance of power between China, Japan, and Korea (and Russia) … and ultimately how the US factors into this region
• The Korean Peninsula and all the related issues from re-unification of North & South Korea to proliferation of arms by North Korea
• The South China Seas
• The quagmire of complex inter-country relations in SE Asia
• Taiwan
• ETC

“China Files ofrece una mirada muy genuina y latinoamericana sobre China”: Caracol Noticias

China-Files

Caracol Radio y Caracol Noticias, dos de los más importantes noticieros de radio y televisión en Colombia, destacaron a China Files como el portal de referencia para las personas interesadas en las relaciones entre China y América Latina. En una nota presentada por Gustavo Gómez y Darío Arizmendi -uno de los símbolos de la radio colombiana- resaltaron la labor periodística de nuestro equipo. Reproducimos el video de Caracol Noticias. Si quieren ver la nota deben ir al recuadro Noticias II y al minuto 7 de la transmisión.

Para ver el video, haz clic aquí.

China – Latin America stories bombard the inter-webs

Case Study on Chinese FDI in Peruvian Natural Resources – Americas’ Quarterly

China’s huge appetite for energy and minerals to fuel its expanding economy has strained international markets for oil, natural gas, iron ore, coal, copper, nickel, aluminum, and other resources. To satisfy China’s hunger for raw materials, Chinese companies, backed by the government, have been acquiring

equity stakes in natural resource companies, extending loans to mining and petroleum investors, and writing long-term procurement contracts for oil and minerals in Africa, Latin America, Australia, Canada, and other resource-rich regions.

In fact, more than half of Chinese foreign direct investment (FDI) in natural resources is in Latin America. It is concentrated in 34 major projects that stretch from Venezuela and Ecuador through Brazil, Bolivia and Peru to Argentina and Chile. Since China launched its “going out” strategy, encouraging companies to become more competitive, total Chinese FDI in Latin America has increased nearly sevenfold, from $226 million in 2003 to $1.6 billion in 2009.

Click here for the complete story

For Latin America, China Both Friend And Foe – Forbes

Is China more friend than foe for countries like Brazil and Mexico? A study to be published in Americas Quarterly journal this week shows that the relationship is actually quite well balanced.

By 2004, China’s arrival in Latin America was being felt with the full force of a fire breathing dragon. China imports totaled $17.9 billion to Latin American countries, more than double where they were just four years prior at $7 billion. At the time, I asked Brazil’s Trade Minister at the time, Luis Fernando Furlan, what the country could do to avoid China’s footsteps. His take at the time was basically to design better mousetraps, under the idea that Brazil’s trading partners would buy items like shoes because the design was cool. That might be true to some extent, but the textile and apparel industry in Brazil and throughout Latin America has lost market share abroad and domestically to China competitors. The good news, the ground they are losing is not as bad as some might have thought when China’s presence was just starting to be felt there.

Click here for the complete story

Latam: exporters rue Chinese rivals – FT report on the Quarterly America study

There’s no doubt that China’s growth has created a market ripe for Latin America exports, particularly natural resources. But have Chinese manufacturers – using those same imported raw materials – hurt the sales of their LatAm rivals? The evidence has mostly been anecdotal. Until now.

Click here for the complete article

Christopher Sabatini: China’s Geostrategic Designs on Latin America – Fox News Latino

In the last 5 years China’s military activities in Latin America and the Caribbean have grown at an unprecedented rate. Beijing now regularly hosts officers from Colombia, Chile, Mexico, Peru and Uruguay in its military academies, has expanded arms sales and technology transfers to countries like Argentina, Bolivia, Brazil and Venezuela, and in October last year even sent a navy ship to the Caribbean.

Is China—now Brazil and Chile’s number-one trade partner—buttressing its economic interests in the Western

Hemisphere with military ties and alliances? Is this the Middle Kingdom’s equivalent of President Barack Obama’s Pacific pivot to balance China’s saber rattling in Asia?

Click here for the complete article

China plants bitter seeds in South American farmland – Washington Times

BUENOS AIRES — Few were surprised when Venezuela announced a deal with China last week to restore 1.4 million acres of unproductive farmland across the oil-rich but impoverished South American nation.

China increasingly is buying farmland and agricultural companies in South America to feed its ever-growing population, currently estimated to be 1.34 billion.

The most important aspect of China’s agricultural investment in Latin America is that “it is a part of the increasing physical footprint of the People’s Republic of China that is just beginning to occur,” said Evan Ellis, an assistant professor at National Defense University in Washington.

Click here for the complete article

China’s export to Latin America: Corruption – CNN

By Ariel C. Armony – Special to CNN

Shoes. Toys. Clothing. China has inundated Latin American markets with cheap goods. This flooding has jolted local producers and generated demands for government measures to protect domestic industries. But there is one Chinese export that has not received enough attention among policymakers, media analysts and public opinion: Corruption.

Though China and Latin America have different values and attitudes, both have traditionally lacked transparency in government. They operate according to informal business dealings which, in turn, undermine or further weaken the rule of law. Corrupt practices exacerbate distortions in public administration, impair sustainable development, erode a nation’s legal culture, and worsen inequality and poverty.

Click here for the complete article

Rare question and answer Xinhua Exclusive on China- Latam relations

Thank you Xinhua News. Please click here to access the article from Xinhua News.

Yang Wanming, director-general of the the Department of Latin American and Caribbean Affairs of the Chinese Foreign Ministry, exchanged views with chinanews.com readers online on Tuesday afternoon.

 

Yang Wanming, director-generalof the Department of Latin American and Caribbean Affairs of the Chinese Foreign Ministry, answers questions from chinanews.com readers online on Jan 17, 2012. [Photo/Chinanews.com]

 

Topic: China-Latin America cooperation in culture

Q: How do China and Latin America cooperate in the field of culture?

A: China has opened 32 Confucius institutes in Latin America, covering almost all Latin American countries. Both sides also send art troupes to visit one another and conduct people-to-people exchanges. Many Chinese people like their football, music and dances and engage in studying Spanish and Portuguese. Many Chinese books have also been translated into Spanish and sold in Latin America.

Topic: Cooperation in energy

Q: What’s the current situation with Sino-Latin American energy cooperation? Some people think China is plundering energy resources there and uses it as a way to curb the US.

A: China is trying to carry out comprehensive cooperation with Latin American countries and its efforts have been well welcomed by them. The cooperation not only benefits the two parties, but also contributes to global peace, stability and prosperity. It started late and is on a relatively small scale, but has been developing fast. China imported 20.73 million tons of crude oil from Latin American countries in 2010, which accounts for 8.7 percent of China’s total import in that year. Venezuela has become China’s 4th largest oil provider. The two parties will explore cooperation on new energy. It’s totally based on equality and mutual benefit and will do no harm to the third party.

Topic: US view on China-Latin America relationship

Q: The relationship between China and Latin American countries has developed so fast. What do you think of the feeling in the US to this?

A: In recent years, the independence of Latin American countries is growing and its economic growth momentum becomes more diverse than before.

The rapid development of China-Latin America relations is on the basis of mutual benefit and win-win for both sides and is within the needs of Latin American countries’ diversified diplomacy and development strategy.

It will not only benefit development of both, but also contribute to the world’s stability and development.

China and the US have already established a consultation mechanism on Latin-America, and through four different consultations, the two parties have enhanced their mutual trust on this issue.

And the US has repeatedly stressed in their consultations that strengthening relations between China and Latin American countries will be good for Latin-America’s stability and development.

Topic: Chinese workers kidnapped in Colombia

Q: It was reported that several Chinese employees were kidnapped in Colombia by unidentified armed militants. How are they now? Could you release some information about the rescue efforts?

A: Four Chinese workers were kidnapped by some unknown armed militants in Caquetá province in Colombia on June 8, 2011. We have urged the Colombia authority to spare no effort to carry on the rescue work under the premise of guaranteeing the safety of hostages. Since then, the Chinese embassy in Colombia has kept in close cooperation and contact with Colombia’s relevant departments. The rescue work has not finished yet, but the safety of the four hostages can be guaranteed. Chinese companies are facing more risks as they go global on a larger scale. We need to increase our political backup and diplomatic guarantee to them, strengthen the consular protection and safeguard their legitimate interests. Meanwhile we advise Chinese people in Latin America to improve their sense of safety and precaution.

Q: How about China-Mexico relations?

A: China and Mexico are both developing countries and are working at enhancing people’s living standards. They hold the same positions on many international issues and regularly cooperate on these..

China and Mexico have some trade friction over trade imbalance problems, but we hope both sides can deal with the problems reasonably and from a development point of view.

We hope both can take active measures to promote the diverse, comprehensive and healthy development of the two countries’ economic and trade relations.

February 14 marks the 40th anniversary of diplomatic relations between China and Mexico. We believe the relations can become more comprehensive, steadier and healthier with the two countries’ joint efforts in the future.

Q: Can you talk about the relationship between China and Brazil?

A: Brazil is one of the biggest countries in Latin America and one of the emerging powers in the region. The China-Brazil relationship is one of the most important between China and Latin America.

In recent years, the strategic partnership between China and Brazil has made considerable progress. They maintain a good momentum of high-level exchanges and the political mutual trust is deepened.

Their economical cooperation is also deepening constantly, which has brought tangible benefits to people of both countries. Bilateral trade volume exceeded $80 billion in 2011. Investment cooperation in finance, energy, steel, and machine manufacturing has also made great progress, and is expanding constantly.

China and Brazil have active exchanges in science, technology and culture as well.

The cooperation in the fields of Earth resource satellites, agricultural technology and aviation is progressing continuously. And the cooperation in culture and education is also very close.

China’s Confucius Institute Headquarters opened two Confucius Institutes and a Confucius school in Brazil and Brazil’s important media institutions have sent many journalists to work in China.

China and Brazil are both developing countries and have broad and consistent interests on major international issues. The Chinese government attaches great importance to relations with Brazil and believes the two countries’ cooperation in various fields will make great progress with their joint efforts.

 

Jim Rogers on Euro, Investment Strategy, MF Global – BLOOMBERG

Dec. 7 (Bloomberg) — Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy and the collapse of MF Global Holdings Ltd. Rogers, speaking with Tom Keene on Bloomberg Television’s “Surveillance Midday,” also discusses the outlook for Brazil. (Source: Bloomberg)

Click here to watch the video direct from Bloomberg

APEC summit catapults Peru into China’s mainstream news

Peru, China cooperation has bilateral benefits

LIMA, Nov. 18 (Xinhua) — Peru and China have enjoyed friendly relations which allow the development of business opportunities for both sides, Peruvian Prime Minister Salomon Lerner told Xinhua on Friday.

Xinhua News - CN President Hu Jintao with PE President Ollanta Humala

Lerner also confirmed that the Peruvian government doesn’t have intention to review or modify the Free Trade Agreement (FTA) signed between Peru and China, which came into force since 2010.

The 5th China-Latin America Business Summit will be held in Lima on Nov. 21 and 22. In this framework, Lerner said Peru offers “a series of possibilities of investment” and cooperation in many fields.

“I reassert the invitation to the Chinese companies to explore possibilities of association with Peruvian companies,” he added.

Click here to read the full article direct from Xinhua News

Leaders of China, Peru seek new cooperation

HONOLULU – Chinese President Hu Jintao met with Peruvian President Ollanta Humala on Friday, with both sides urging deeper economic cooperation.

Humala also called for more Chinese firms to invest in Peru.

The duo met on the sideline of the 19th Economic Leaders’ Meeting of the Asia-Pacific Economic Cooperation (APEC).

During the meeting, Hu said Sino-Peruvian ties are at a strategic high, and he pledged the two sides would sustain high-level communication on matters of mutual concern

Click here to read the full article direct from The China Daily

Chinese president calls for stronger ties with Peru

HONOLULU, United States, Nov. 11 (Xinhua) — Chinese President Hu Jintao met with his Peruvian counterpart Ollanta Humala Tasso here Friday, and the two pledged to work together to further advance the strategic partnership between the two countries.

The two are in Hawaii to attend the 19th Economic Leaders’ Meeting of the Asia-Pacific Economic Cooperation (APEC) forum scheduled for Saturday and Sunday.

Noting that both China and Peru are important developing countries in the Pacific Rim, Hu said China always treats and handles its relations with Peru from a strategic height. He put forward a four-point proposal to further boost bilateral ties.

Click here to read the full article direct from Xinhua News

How serious is “China tightening?”

According to this interview from Reuters, once again the questions turns back to the US / Europe and whether or not those regions will recover…

Lack of a legitimate recovery in the developed world = China tightening more serious threat to the global economy

Recovery in the developed world + cont. growth in Asia = China tightening less serious threat to the global economy

China…? Hard fall. Probably not any time soon.