Will China's Economic Slowdown Affect Latin America Trade?

Press Release
Wednesday, September 19, 2012

Erik Bethel, of SinoLatin Capital addressed the question at recent Latin America China Investors Forum in Shanghai.

Amidst much speculation regarding the slowdown of China’s GDP, with 2012 estimates likely to fall below 8%, SinoLatin Capital dispelled fears of a “China Meltdown” to an audience of 500 delegates from Latin America and China.

“Latin America will continue to be an indispensable commodities supplier for China. More specifically, countries such as Brazil, Peru, Chile and Colombia present some of the best opportunities for Chinese investors due to relatively low inflation, stable governments and a strong growth rate.”

“The majority of the China analysts in the western media are focused on the short-term,” noted Bethel. “Will China’s GDP growth decline by one percent or by two percent this year? I think people are missing the more important medium and long-term picture. The China story is about demographics and urbanization.

Despite the short-term expected drop in China’s GDP growth rate, the Chinese government has been facilitating the largest wave of human migration in the history of the world. For the last twenty years, hundreds of millions of people have moved from rural to urban areas. And there is still a long way to go. China is 50% urbanized, therefore there are still 700 million people living in the Chinese countryside!”

China is not only urbanizing, but the country is creating a massive urban middle class. This middle class requires commodities such as copper, oil, and soybeans to keep up with urbanization.

Mr. Bethel went on to explain the link between China and Latin America, “Latin America will continue to be an indispensable commodities supplier for China. More specifically, countries such as Brazil, Peru, Chile and Colombia present some of the best opportunities for Chinese investors due to relatively low inflation, stable governments and a strong growth rate.”

This is the fourth consecutive year SinoLatin Capital has sponsored the Latin America China Investors Forum in continued support of investment relations between China and Latin America.



 

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Logistics

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Costa Rica Approves APM Terminals Project

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said on Friday Costa Rica's environment agency had approved the construction of its Moin Container Terminal project.

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1429 sec (7 req/sec)