R
robh
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Here is a quote from stratfor.com (you need to subscribe to read the whole article, but the link is here: Free Article for Non-Members | STRATFOR ).
"The Chinese also carry a fat wad of cash and have shown increasing interest in Latin America. Earlier this year Beijing ponied up $10 billion for Petrobras, among a spate of other huge investments. For the United States, this means that the Chinese are bringing to bear their economic might to make a bigger footprint in the United States’ backyard. Of course, the United States has a strong economic relationship with Brazil, with exports reaching $32.3 billion, mostly for machinery and aircraft; U.S. direct investment into Brazil rose to $42 billion in 2007 (the most recent data). But as the Brazilians were sure to stress to U.S. officials, for several months in early 2009 the total value of Brazil-China trade exceeded total U.S.-Brazilian trade, making China — at least for the time being — Brazil’s biggest trading partner.
With the Ex-Im Bank’s eagerness to work with Brasilia, it is clear that the United States does not intend to let Beijing outpace U.S. influence in Brazil so quickly. The Ex-Im Bank has committed $2 billion just for starters, and the overall proposition is essentially a running line of credit that the Brazilians will be able to draw on repeatedly for a wide range of projects. These range from oil and gas to renewable fuels like wind and solar, ethanol production, plus all the attendant infrastructural and supply components of these industries like the highways and vehicles. All they need is approval from the U.S. bank, which has signaled its optimism about reviewing whatever projects the Brazilians submit — and believes it has the liquidity to support."
What this means is that both China and the US are starting what could only be described as an investment race into Brazil. Which is of course is good news for Brazil.....
"The Chinese also carry a fat wad of cash and have shown increasing interest in Latin America. Earlier this year Beijing ponied up $10 billion for Petrobras, among a spate of other huge investments. For the United States, this means that the Chinese are bringing to bear their economic might to make a bigger footprint in the United States’ backyard. Of course, the United States has a strong economic relationship with Brazil, with exports reaching $32.3 billion, mostly for machinery and aircraft; U.S. direct investment into Brazil rose to $42 billion in 2007 (the most recent data). But as the Brazilians were sure to stress to U.S. officials, for several months in early 2009 the total value of Brazil-China trade exceeded total U.S.-Brazilian trade, making China — at least for the time being — Brazil’s biggest trading partner.
With the Ex-Im Bank’s eagerness to work with Brasilia, it is clear that the United States does not intend to let Beijing outpace U.S. influence in Brazil so quickly. The Ex-Im Bank has committed $2 billion just for starters, and the overall proposition is essentially a running line of credit that the Brazilians will be able to draw on repeatedly for a wide range of projects. These range from oil and gas to renewable fuels like wind and solar, ethanol production, plus all the attendant infrastructural and supply components of these industries like the highways and vehicles. All they need is approval from the U.S. bank, which has signaled its optimism about reviewing whatever projects the Brazilians submit — and believes it has the liquidity to support."
What this means is that both China and the US are starting what could only be described as an investment race into Brazil. Which is of course is good news for Brazil.....
