Yes CNN are just running an interview with Lagos of Chile, following the signing of an agreement with China. I could not quite understand what was being said about APEC.
At first it seems intuitively strange to think of a free trade area, even one that takes 20 years to develop that actually straddles the Pacific. South East Asia, yes, but across the Pacific ...?
Yet here in this clip below is further evidence that China is planting its feet strategically in Latin America. To outflank the USA? To start to add a few more threads around the web in which the fly has already been caught?
After all, if China is trying to get rid of capital, in order to keep the exchange rate of the yuan low, it only has to have a relatively benign official public policy, to start investing in Latin America, as conscientiously as the British did in the 19th century, quietly to build up a dominant stakeholding over a decade or two.
How could the USA object to this pleasant offer below that the poor Chinese will generously help tourism and rail travel in Argentina?
Chris Burford
London
----- Original Message ----- From: "Anthony D'Costa" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Wednesday, November 17, 2004 10:48 PM Subject: [PEN-L] on the subject of China
China to invest $20 billion in Argentina Wednesday, November 17,2004
BUENOS AIRES: China's President Hu Jintao and Argentine President Nestor Kirchner signed cooperation agreements as Chinese companies pledged investments of 20 billion dollars. Chinese companies would develop railway and aerospace projects and send tourists to the South American country on holiday packages.
"The goals will be to strengthen strategic cooperation and continue the firm reciprocal support in terms of sovereignty, such as the territorial integrity of both countries," Hu said through an interpreter.
Lo Fong Hung, chief executive of the China Construction Bureau, said during a ceremony that 20 billion dollars would be invested in Argentina. Some eight billion dollars would finance urban and interurban railways and five billion dollars would be invested in fossil fuels over five years, according to Argentine officials.
Another six billion would build 300,000 homes and other infrastructure projects, such as 450 million in communications and 260 million in satellite technology.
Welcomed by dozens of children waving the two countries' flags at Buenos Aires airport, Hu and his official delegation took a 50-car convoy into the capital ahead of meeting Kirchner.
Argentina laid out maximum civilian and military honors for the visit with a cavalry guard escorting Hu and his wife, Liu Yongqing to the government headquarters.
Hu has sought to use this Latin American tour -- ahead of a major Asia-Pacific leaders' summit in Santiago this week -- to extend China's economic reach in the region.
Argentina has been desperate to attract new investment since its spectacular default on its foreign debt in 2001.
Hu said the accords were intended to "strengthen strategic cooperation."
"The two governments are going to stimulate enterprises to increase initiatives in the agro-food, industrial, mining and infrastructure sectors," said the Chinese leader after signing the accord.
One poll published Tuesday said 78 percent of Argentines believe the economic agreements will be important to help Argentina's efforts to escape its economic crisis.
In Brazil, where he spent five days, Hu secured recognition from the government that China is a "market economy" which helps its case in international anti-dumping disputes.
In exchange, Brazil obtained greater access to the Chinese market for its beef and poultry industry, as well as a 200 million dollar order for at least 10 Embraer airplanes.
Hu was expected to seek the same concession from Argentina. As in Brazil this has caused concern in Argentina that such a move could weaken Argentina's defenses against a flood of Chinese goods.
"It is impossible to compete with China equally," said Aldo Karagosian, who heads Argentina's textile industry federation. "We fear an avalanche of Chinese products."
On Wednesday, Hu will meet the Supreme Court president and the mayor of Buenos Aires before heading to San Carlos de Bariloche in the foothills of the Patagonian Andes for a private visit.
Hu will leave Argentina on Thursday for the annual summit of the Asia-Pacific Economic Cooperation forum in Santiago.
Trade between China and Argentina reached 2.6 billion dollars between January-October. But it favored Argentina whose exports reached 2.1 billion dollars -- more than 80 percent of that in soy exports.
http://www.southasianmedia.net/index_story.cfm?id=161617&category=Frontend&Country=world#
AFP | REUTERS |
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