China Stakes Its Claim in Latin American Energy:

establish a new government body to regulate its mining. “Clearly, we’re not against foreign investment,” said Senator Alejandro Armenta, who presented the bill. “We’re against the looting of our country.” Private investors will be allowed to obtain concessions, but right now, “We are giving it [lithium] away to the Chinese, the English and the Canadians,” said Armenta, head of the Mexican Senate’s Finance Committee. Ganfeng is developing an open pit lithium mine in Sonora state and recently announced it will build a lithium-ion recycling plant in Mexico. 71 Environmental issues dog Chinese projects Chinese trade and investment in LAC petroleum, agriculture and mining sectors have been linked to serious environmental degradation. One example involves local water use and pollution. According to a 2017 report, “LAC exports to China have used over twice as much water as other LAC exports: two to three cubic meters per dollar to produce, compared to less than one.” 72 Also, water sources frequently suffer contamination from oil well drilling and production, mine construction and plantation development. These projects simultaneously threaten

the traditional livelihoods of local communities that rely on small-scale agriculture, fishing, and ranching. Even worse, new oil wells, mines, and plantations do not generate sufficient employment to compensate for the loss of income in these communities. 73 One answer: LAC policymakers should enact appropriate environmental standards that prioritize diversification over commodity-driven exports.

Rainforest burnt for cattle ranching in Brazil. Photo: Dylan Garcia Travel Images / Alamy Stock Photo

Changes in land use also have an impact, mainly deforestation and the clearing of grasslands to produce an economic role for the land. Brazil represents a particularly serious case. China acts as a major driver of deforestation in the Brazilian Amazon and the

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