Source: Voice of Germany

Over the past 30 years, China's goods exports have been far more than imports.This has made its accumulated foreign exchange reserves ranked first in the world for approximately $ 3 trillion (S $ 3995.7 billion), which is roughly equivalent to France's GDP.So, what do China do with this money?

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First of all, China invests some money in the United States, followed by other countries and regions including Latin America.According to the long -term research of the American Enterprise Research Institute, the Chinese Global Investment Tracker managed by Derek Scissors, a senior researcher, said that the Chinese company invested more than 23.5 billion overseas overseas Chinese companies overseas in one year.Dollar.According to China's direct investment data in Latin America and Caribbean, China has invested a total of $ 172 billion in Latin America since 2000.

China's weight in the Latin American economy is increasingly heavier, which may further lead to the expansion of its political influence and cause people's concerns."China does not want to interfere with the politics or problems of the third country, but it wants to do business." Felipe Debasa, a professor who studies the contemporary history of Chinese contemporary Chinese history, explained: "We can say that business is a oneIs the birth of a new diplomacy? This will be a key issue: this is not the main intention of China, but it may be an effect of a sub -band. "

A large number of engineering projects and loans

In addition to doing business, Chinese companies have also participated in a large number of Latin American public engineering projects. In addition, China National Development Bank and China Import and Export Bank also provided official loans of nearly $ 138 billion to the region government, especially to Venezuela, Brazil, Ecuador, Argentina, Bolivia and other countries.However, such capital flows have gradually slowed down in 2017, and then since 2020, China no longer provides any official loans to Latin America.Debasar said: "The epidemic of the crown disease has changed everything in China."

Investment concentrated in Brazil

From 2000 to 2005, China's investment in Latin America was concentrated in Brazil.Today, Brazil is still China's main trading partners and investment recipients in Latin America. For example, the main power companies in the country are in the hands of the Chinese.Former Brazilian President Bosonaro also claimed in the 2018 campaign: "China is buying all Brazil."

Other countries, such as Peru, Mexico, Chile, Colombia and Argentina, have also received more and more Chinese investment.Enrique Dussel Peters, a professor of economics at the State University of Mexico, pointed out: "From the initial decades to the recent data, you can observe that Chinese companies, industries, and industries, andIn terms of ownership, it is becoming more and more diverse, and it is no longer limited to listed companies. "

Favorite economic situation

Alberto García, the asset manager of ACCI PARTNERS Asset Management in Madrid, Spain, listed the reasons for investing in Latin America in the past 20 years.He explained: "When the world trade and the US economy perform well, emerging markets as exporters are also better. When the market rises, their gains will be greater. In additionThe appreciation of all emerging market currencies, including Latin America (except Mexico peso), allows China to better use its reserves."

Researcher Shi Kendao's report pointed out that Chinese investors were originally attracted by raw materials because China needs a lot of raw materials.He went on to say that "once these demands are guaranteed", investors will begin to find a way to "deepen trade relationships".

Stepping from raw materials to energy, manufacturing

Although the raw materials related industries accounted for about 95%of China's investment projects in the region before 2009, in recent years, this proportion has fallen below half.Shi Kendao emphasized the investment growth of the energy departments and manufacturing industries, as well as the transition from fossil fuel investment to renewable energy in the field of energy.Professor Economics Dussell Peter also has a similar view. He believes that China is not just looking for raw materials.He took the lithium mine investment in Argentina, Chile and Mexico as an example: "They (China) does not need more, they already have lithium in the next decades."

Shi Kendao said that this diversified example is investment in manufacturing, just like in Mexico. Although China has no strong influence in the local area, it is "growing."In this American researcher, China is doing this to try to ensure that it can enter the US market that is becoming more and more difficult for China to enter through Mexico.

Is there a reasonable concern for China?

Dussell Peter holds a positive attitude towards China's investment in Latin America, arguing that "should not exaggerate China's existence and Chinese investment."He pointed out: "China's direct investment compared to the total foreign direct investment in Latin America, the highest is about 10%," which is still very different from investment from the United States or Europe.However, the economist also mentioned that "China has achieved five hundred years of goal in Europe in 20 years."

Shi Kendao is skeptical of China's investment boom, but he also said that he could not determine whether the investment during the crown disease was stagnant, and would this boom continue in the same way.He said: "The fact that China needs raw materials does not mean that establishing a relationship on the basis of raw materials is a good idea. He made a summary saying:" What Latin American countries need a diversified economy. Only in this way can establish health with China can establish health with ChinaTrade relationship."