China Stakes Its Claim in Latin American Energy:

Community response to environmental damage

investments exist in an area with extremely high biodiversity in four different species groups, as well as traditional indigenous territory.” 86 Ecuador’s Secretary of Hydrocarbons circumvented national laws that require certain participating parties to seek majority approval within prospectively affected communities by seeking the signed approval of only the Sápara community president. 87 In response, Sápara and Kichwa indigenous community leaders led a movement to reclaim authority over their territories and rejected oil exploitation on their lands. This made any expansion of oil investment an acrimonious subject, and one that was nearly absent from consultations with indigenous communities. 88 With billions of dollars invested in mines, oil and gas fields, hydroelectric projects and railways needed to carry products to ports, China faces operations that realistically will take years to begin, and even longer to break even and start delivering profits. 89 To ensure that projects reach their projected completion dates, China must work in concert with LAC governments and civil society.

Community engagement is vital to the successful completion of Chinese infrastructure projects. In LAC, involuntary resettlement of large communities, severe environmental degradation, disregard of indigenous rights and labor disruption will not foster positive sentiments or longevity for either prospective or in- progress investments. By mitigating these challenges, Chinese government officials could more effectively conduct risk analysis on each project and expand their market share. Of course, any advances will depend on cooperation with host- country governments and civil society. Some Chinese investments, such as the Chinalco Toromocho copper mine in Peru and Jungie tin mine in Bolivia, show how open negotiations, transparency and government incentives can produce a successful working relationship. In other cases, good-faith negotiations do not work. 84 One example is Andes Petroleum in Ecuador, a joint venture between SINOPEC and CNPC, which won two new concessions in 2014. 85 According to Boston University’s Global Economic Governance Initiative, “Ecuador is the only South American country where major Chinese

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