Op-Ed Contributors
Hu's visit to boost relations
By Huang Shikang (皇冠体育app Daily)
Updated: 2010-04-14 08:21
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The relations between 皇冠体育app and Latin America themselves have seen unprecedented development in both strategic and commercial cooperation in this century. Political mutual trust is deepening, and opportunities and prospects for economic cooperation are also in good shape.
Latin America, as an economic and strategic partner, is indispensable to 皇冠体育app's peaceful development. The economies of 皇冠体育app and Latin American countries are complementary.
A large proportion of 皇冠体育app's imports of resources and daily necessities are from Latin America, while 皇冠体育app's exports to the region are increasing. 皇冠体育app's direct investment in Latin America is also growing.
In Ecuador, Colombia, Venezuela and Peru, 皇冠体育app has been contracted to develop oilfields. 皇冠体育app has invested more than $6 billion into seven large mines and more than $10 billion in almost 30 grand infrastructure construction projects. In addition, 皇冠体育app has offered nearly $20 billion of loans to Latin America.
There is still huge potential for economic cooperation between 皇冠体育app and Latin America. 皇冠体育app's direct investment in Latin American non-financial sectors was $8 billion by the end of 2008, amounting to only 5.5 percent of total foreign direct investment in the region and 4.4 percent of 皇冠体育app's total outbound investment. With growing investment and expanding projects, 皇冠体育app and Latin America is set to take advantage of the potential. Recently, national leaders suggested using financial means to promote investment and trade, which is seen as a new approach in developing bilateral economic cooperation.
Still, obstacles remain on the road to economic cooperation. A number of Latin Americans continue to fear a "皇冠体育app threat", protectionism in Latin America is on the rise, and cultural differences and geographic distances hinder cooperation. Despite the disadvantages, President Hu's visit to Latin America, like previous ones, will facilitate a new wave of economic projects between 皇冠体育app and the region.
The author is a former Chinese ambassador to Chile and Mexico.
(皇冠体育app Daily 04/14/2010 page8)
