China Stakes Its Claim in Latin American Energy:

seniority for debt issued by other non-Chinese financial institutions. 6

China finances a broad spectrum of international projects through two giant state-owned financial institutions - the China Development Bank (CDB) and the Export-Import Bank of China (CHEXIM) - as well as through its massive BRI program, primarily focused on infrastructure projects. Chinese private companies also finance projects overseas directly and with support from government financial entities, as do government owned enterprises, like China’s state-owned oil company, China National Petroleum Company (CNPC). CNPC is an international oil and gas company that operates in over 30 countries and had more than 460,000 employees in 2019. CNPC reported reserves of 3.7 billion barrels of oil equivalent and produced 181 million metric tons of crude in 2019, according to its annual report. Recipients of Chinese financing – like energy companies or related projects in LAC – may receive direct investments or loans, while governments with problematic currencies may benefit from currency swaps with the Chinese banks. China also has paid to build multiple sports stadiums in LAC as part of its cultural diplomacy.

Chinese Premier Li Keqiang (L) and Brazilian President Dilma Rousseff attend a video ground-breaking ceremony in Brasilia, Brazil, May 19, 2015 for the ultra-high voltage electricity transmission project for the Belo Monte hydroelectric dam. © Pang Xinglei/Xinhua/Alamy Live News

INSTITUTE OF THE AMERICAS

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