South America – big Chinese projects the next 5 years
China is currently one of the major world powers right after the USA. Thus, the Chinese are on their way to expand their business worldwide. The country is more focused on investing in the major industries of South America. In the span of 5 years between 2015-2019, China’s President, Xi Jinping, has set a business goal to accomplish in South America. They aim to trade $500 billion with the Latin American and Caribbean region. The major projects of China in this country are proof of it.
Promoting Mexican Clean Energy
China has already invested in many projects in Latin America to promote clean energy. The State Power Investment Corp., one of the leading Chinese companies, has bought the leading renewable firm of Mexico, Zuma Energia. Ganfeng, another renowned Chinese firm, has also announced the construction of a lithium battery recycling plant in Sonora. It will promote a circular economy to benefit the environment and humankind. Also, it will reduce the pollution in the electric vehicle society. These projects will leverage the development of renewables in Mexico.
Belt and Road Mission
China has many engagements and deals with Latin America on Belt and Road connectivity initiatives (BRI). The policy banks of China are the primary backers of BRI. However, nowadays, many state-owned enterprises and commercial banks also fund these projects. Development of roadways, maritime ports, and railways all qualify for belt and road projects. Though there are both red and green flags about the initiative in this region, currently, BRI is the most talked-about Chinese project, which can massively expand in the coming years.
Palisades Road Improvement Project in Jamaica
China tends to close larger trades with the Caribbean region. Hence, they show immense interest in Jamaican establishments. The Palisades Road improvement project in Jamaica is a live example of it. This construction aims at connecting the capital of Kingston to its nearby airport. Almost $80 million was funded for this project by China Exim Bank. Besides, the reckoned Chinese company, China Harbor Engineering Company, is the primary contractor of this project. They made a massive investment of $400 million in road construction and bridgework under the Jamaica Development Infrastructure Program (JDIP).
Belgrano-Cargas Railway Project
In Argentina, China takes a significant part in renovating its railways. The Chinese banks are financing about $10 billion in railway projects. These projects include the modernization of the 1700 km Belgrano-Cargas rail line. The China Machinery Equipment Corporation undertook it in 2020. But the subway lines in Cordoba will be executed by the China Railway Engineering Corporation.
China is all set for its expansion across the globe. Hence, they have keen eyes on influencing Latin America’s industrialization. Nevertheless, Chinese establishments also help enrich the economic growth of South America. The above-said significant Chinese projects in the next 5 years are burning evidence of it.