Caution in Latin America over deals with China
As premier urges Chinese businesses to work together, analysts raise questions over past deals that have still not been implemented
Chinese enterprises in Peru should support each other in expanding their overseas operations, Premier Li Keqiang said yesterday as he continued a tour of Latin America that has seen China sign up to investments worth tens of billions of dollars.
Speaking in Lima, Li urged mining and manufacturing companies to coordinate with financial institutions to achieve common development goals, and said Beijing would strengthen its ties with Peru to better facilitate Chinese companies.
But his comments - which also called on Chinese companies to take on social responsibilities and maintain a "harmonious relationship" with local communities, came amid questions from some local media and analysts surrounding the reported US$53 billion worth of deals he signed with Brazil last week.
"We need to take these potential investments with caution. Some of the projects announced [on this trip] have already been publicised in the past, but were not implemented," said Larissa Wachholz, who works in Brasilia for Vallya, a consultancy specialising in China-Brazil deals.
One of the projects which has created controversy is a 4,400km railway line connecting the Atlantic and the Pacific oceans through Brazil and Peru.
Chinese state-owned companies (SOEs) have agreed to finance and carry out feasibility studies in the coming months.
But Renato Pavan, an expert on transport integration in Latin America, said the railway was an old idea which had "no chance" of being implemented.