China's involvement with companies in Latin America will grow as we enter 2023. China's intent is to become the leading trading partner as the sphere of influence of the USA diminishes.
We have seen China's growth in the region with on an emphasis in two areas in the past few years.
See as many products from China to Latin America.
Stockpile as many resources from Latin America that will be of greater use in the near future.
One such example of raw materials that are being stockpiled, is Lithium. From the Argentine Republic, Chile and Bolivia, lithium is being mined and then sent to China to process. China is considering this to be of strategic as well as commercial value.
Doing business with a company from China is doing business with China
When you deal with a corporations in China, you must keep in mind that the China Communist Party must hold the majority of seats on their board of directors. So that is why we said in our narrative China's involvement with corporations in Latin America. You are actually dealing with China. It is hard for the business world to accept that when they think they are doing business with a particular company that China controls that company.
China in many areas is now #1 in the trade market in Latin America
In Uruguay, in Argentina, Ecuador, Brazil, Venezuela and Salvador has been flirting with China and already have significant trade agreements. There are also secret military agreements.
Doing business with the EU or the USA can potentially carry a jail sentence
The USA and EU have signed anti-corruption bills. These laws do not allow kickbacks bribes, that many times amounts to hundreds of millions of dollars. Those who broker these deals with bribes would be looking at potential jail time if dealing with the USA or EU.
This would not be the case if they deal with Russia and China, as they do not have these corruption laws.
Military Equipment sales are now moving towards China and Russia
Military sales in Latin America used to primarily be purchased from the USA, France or Germany. This purchase shift is moving towards Russia and China.
Why is this so significant?
Buying military equipment is not like buying a car.
Military equipment requires several things.
Training. Since China runs all its companies, including its companies dealing in military, this would put military personal from China or Russia on the ground in Latin America.
Spare Parts will be needed for the equipment. So this sale of military equipment involves a deeper relationship between the two countries.
A country must have the ability to pay for the military equipment. China, by making the sale has a military presence in the region is the reason that a country like Argentina, which can not afford to pay, is being offered from China some financing options.
China has a special relationship with Lula, the new president of Brazil.
Brazil because of its size is very influential in the region. It is still unknown if Lula will shift his government hard left or if he will be a moderate. The previous president was very successful economically. Lula may not like his politics but would he veer away fro a successful economy?
China's influence in the region includes the USA
China has been making investments n the USA itself. They have purchase land close to military bases. The Chinese government has opened police stations where they are harassing the dissidents from the China Communist Party.
Maibort Petit is a Venezuelan writer, researcher and political scientist specializing in Transnational Organized Crime. Based in New York, she works for several Hispanic media outlets and as a consultant for several firms in New York and Washington D.C.
She is founder of the Freedom Voice Reports, an investigative reporting site dedicated in the fight against violations of Human Rights.
Julio Cirino
Historian, focus on contemporary matters, master on strategic studies. Experience on risk evaluation and complex situation analysis. Specialized in networks/politics interaction.