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China's Tech Push in Latin America
China's investment in Latin America is shifting towards "new infrastructure," including renewable energy and electric vehicles, while still maintaining a significant presence in traditional sectors like mining and oil.
Spanish
Spain
TechnologyChinaInvestmentLatin AmericaSustainability
Diálogo InteramericanoBydBeiqi FotonCherySaic Motor
Margaret MyersÁngel MelguizoYifang WangEvan Ellis
- Why is China shifting its investment focus in Latin America?
- The shift reflects China's prioritization of sustainable development and its companies' positioning for future growth in these emerging sectors. This also helps China diversify its investments and reduce dependence on traditional resource-heavy industries.
- What is the main focus of China's evolving investment strategy in Latin America?
- China's investment in Latin America is shifting from traditional sectors like mining and oil to focus on "new infrastructure," including renewable energy, electric vehicles, and 5G technology.
- What is the scale of China's investment in Latin America's "new infrastructure"?
- In 2022, Chinese foreign direct investment (FDI) in Latin America's "new infrastructure" exceeded $3.7 billion, representing 58% of China's total investment in the region that year. This investment is particularly strong in ICT, driven by growing consumer demand for digital services.
- How did the announcements of Chinese projects in Latin America fare in 2023 compared to previous years?
- Despite a dip in FDI between 2020 and 2021, announcements of new Chinese projects in Latin America surged in 2023, reaching $14.377 billion and making China the third-largest source of such announcements in the region. This resurgence is fueled by renewed interest in automotive and energy sectors, with major projects in Mexico, Brazil, and Argentina.
- Despite the increase in investment in new technology, what are some traditional sectors that China still heavily invests in?
- While investment in "new infrastructure" is increasing, China's total investment in Latin America remains heavily concentrated in traditional sectors like oil, mining, and transportation infrastructure. Mining investments are expanding in areas like lithium and gold, reflecting China's efforts to hedge against the US dollar.