Central and South America Weigh Doing Business With China vs Doing Business with the US

Posted on March 14, 2011


In their global pursuit of minerals and other raw materials, China has set up operations in countries from A-Z.  Now active in South America, they have just made a big investment in Brazil – a country to which we sent equipment and expertise to drill for  state-owned oil company, Petrobras, together with a $2 billion dollar loan  in the midst of shortages at home. [Fox News]

More recently, China made a $7.1 billion deal with Brazilian oil company Repsol as well as another deal for $2.45 billion with Argentina’s Occidental Petroleum.

The pros for dealing with China?

  1. Chinese business investors, act quickly when conducting, investments of certainty.
  2. Lack of socio-political involvement.  China enters these nations, care free of any socio-political concerns..
  3. Improved Infrastructure . This is especially true for Brazil as it prepares for the 2014 World Cup and 2016 Summer Olympics.
  4. Improved technological advances.
  5. Access to global markets.

The biggest argument against doing business with the Chinese is their insistence on hiring Chinese nationals and not locals.  The biggest obstacle against doing business with the US – bureaucracy – Congressional approvals that take forever. [most of the above taken from Paulgoree.wordpress.com]

Increasingly, we are going head to head with China all over the world in the pursuit of rare earth and other minerals to remain independent.  Sadly, the business methods that China practices are increasingly a win-win for China and countries are beginning to realize their money comes at a high price.  Their global reach is insidious because it comes with the positioning of Chinese nationals all over the world and in every country.

 

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