China Stakes Its Claim in Latin American Energy:

Challenges for China and its Latin America partners in energy Since 2000, the scope of Chinese investment, trade, and loans in the LAC region has, except for the last few years, expanded significantly. By 2013, Chinese policy bank loans had already surpassed the financial backing provided by Latin America’s long-established multilateral partners, such as the Inter-American Development Bank and World Bank. 48 LAC political leaders generally have displayed enthusiasm for China’s contribution to regional development. Highly-indebted governments with elevated country risk and limited access to the international banking system can obtain loans from China, often at attractive interest rates. And Venezuela can eschew the onerous conditions set by international financial institutions. Chinese financing can fill holes in national budgets, while governments claim credit for energy and infrastructure projects that can improve their economies and the lives of their citizens. But China’s expanding economic role is not without criticism. Chinese manufacturers provide strong competition for Latin America’s industrial sector as they develop new projects, and many critics argue that China’s increased footprint may lead to the “re- prioritization” of the region’s economy, eroding

of world-class oil states and raising prospects for massive new oil revenues.

In the mining sector, China’s Bosai Minerals produces bauxite and owns a manganese mine, which was shut down in 2019 after two miners died and several others became ill while working the Matthew’s Ridge mine. A Guyanese news outlet, newsroom.gy, recently reported that the manganese mine will begin producing later this year. In the article, Guyana’s Minister of Labor said that Guyanese employees should receive the same pay as Chinese expat workers. 46 China’s relationship with Guyana goes back to 1972 (“a now defunct brick factory”) and covers a range of investments, loans and grants, said Jared Ward, an expert on China and its ties with the Caribbean in a 2020 article published in The Global Americans. But important Chinese projects have been delayed by controversies, like environmental concerns, political differences and the issue of worker equality. Currently the China-Guyana relationship looks like a “potential ‘win-win’ for both countries,” Ward said. “But for all the good that comes out of this partnership, there’s risk allowing China, and its mixed environmental record, unfettered access to Guyana’s natural resources.” 47

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