LatAm fertile ground for Chinese companies

Latin America will retain its status as an appealing market and investment destination for Chinese companies, driven by its vibrant consumer base, high demand for modern infrastructure and abundant natural resources, said experts and business executives.

The ongoing urbanization and industrialization in Latin America, coupled with the economic reforms and infrastructure development plans in many countries, including Brazil, Colombia and Peru, will further enhance the region's attractiveness, said Liu Xingguo, a senior researcher at the China Enterprise Confederation in Beijing.

"With these factors, Chinese companies can find fertile ground for growth and long-term partnerships, contributing to the overall development and modernization of Latin American economies," said Liu, noting this dynamic synergy bodes well for both parties, fostering mutual economic prosperity and strategic cooperation.

Early this year, six China-developed electric and combustion dual-power trains started service on a national railway between Santiago and Curico in Chile, marking the operation of the first dual-power trains China has exported overseas.

Developed by Qingdao CRRC Sifang Rolling Stock Co Ltd, a subsidiary of the State-owned CRRC Corporation Ltd, the dual-power trains have a maximum operating speed of 160 kilometers per hour, making them the fastest of their kind in Chile and Latin America.

Wang Jingjun, a senior designer at CRRC Qingdao Sifang, said they are equipped with internal combustion and grid-based power supply systems, and can switch power systems without stopping during operation, which improves their operational applicability and reliability.

Each of the trains is capable of carrying up to 630 passengers. They have effectively modernized Chile's railway services, greatly increased passenger transport capacity and shortened travel time between regions along the railway, said Wang.

The Panati photovoltaic power station in Brazil, backed by investment from the Beijing-headquartered State Power Investment Corp, began operations in June. The power station has an installed capacity of 292 megawatts and can provide clean energy for more than 350,000 local households annually.

Lin Guixiang, chairman of SPIC's Brazil branch, said that after the station is connected to the grid at full capacity, it will reduce carbon dioxide emissions by around 630,000 metric tons annually as part of efforts to help alleviate climate change.

Speaking at a seminar in Beijing last month, Zhang Shixin, deputy secretary-general of the National Development and Reform Commission, said China and Latin American countries have strong economic complementarities, a solid foundation for cooperation, tremendous potential and broad prospects for collaboration.

China is willing to work with relevant countries to advance high-quality development in China-Latin America industrial, energy and infrastructure project cooperation, fostering diverse and mutually beneficial outcomes, said Zhang.

The China Development Bank, a State-owned development finance institution, had provided $160 billion in financing support for over 250 projects across 21 countries in Latin America by the end of October, significantly uplifting the economic and social development of Latin American countries.

These projects have greatly advanced practical cooperation between China and Latin America in areas such as infrastructure, energy, minerals, manufacturing, electricity and telecommunications, said the Beijing-headquartered bank.

China National Offshore Oil Corp, one of the country's three major oil producers, announced in August that it had successfully secured a long-term contract for the trade of 12 million barrels of crude oil from the Mero oilfield, the third largest pre-salt ultra-deepwater oil field in the world, according to information released by the State-owned Assets Supervision and Administration Commission of the State Council.

This marks the first time a Chinese company has won a bid for the Brazilian government's share of oil, managed by Pre-Sal Petroleo SA, or PPSA, through an on-site public auction, said the company.

PPSA is responsible for managing production sharing contracts on behalf of the Brazilian government and commercializing the produced oil and gas. It has the authority to directly sell the government's share of oil from these contracts. The auction involved four lots, all derived from the Brazilian government's share in the Mero and Buzios oil fields, totaling 37.5 million barrels.