China's growing influence in Latin America
Mohammad Amjad Hossain
While Rome was burning, Nero was playing his fiddle. That is exactly what has been happening in Latin America these days. While President Bush remains engaged with the unjust wars in Afghanistan and Iraq, communist China, an emerging tiger in Asia, has been slowly and steadily penetrating Latin America, a close neighbour of USA. In the past, USA was the most influential nation for Latin America. In this connection, I would like to quote President James Monroe of the United States, who said that no foreign power would have more influence there than the United States itself. The Monroe doctrine was in use during the cold war as well when the Latin American countries from Chile to Nicaragua experienced some form of intervention from the United States.In the view of the unilateral and pre-emptive doctrine and high-handed policy of the Bush administration in dealing with the countries in Latin America, some leaders in the region are distinctly distancing themselves from the influence of the United States. Recently, the request of the United States to join as an observer in the South-South dialogue between Latin American and the Middle Eastern countries was turned down. The Helms and Burton act of the United States, which aimed to increase pressure on Cuba, has caused dispute amongst its allies in Latin America. Although this act is a restatement of existing economic sanctions imposed by President Kennedy in 1962, it received unequivocal condemnation from the Organization of American States at its meeting held in Panama, June 1996. According to New York Times, March 1, 2005, "from Brazil to Argentina to Ecuador and Venezuela, while demonstrating important differences in style and substance, these new leaders are united in their conviction that the free market reforms of the 1990's have failed and by a renewed focus on egalitarianism and social welfare, but not to the point where it breaks the bank." Three quarters of the region's 355 million people are now ruled by leftist- leaning leaders, which is another interesting development in the region. In spite of economic sanctions against Cuba, many countries in Latin America are still maintaining relations with Cuba. Due to the apathetic and big brotherly attitude of the Bush administration, in particular his wrangling with Venezuelan President Hugo Chavez, Latin American countries are looking for counterweight in China. According to the Washington Times, "US-Venezuelan relations have been on a downward spiral since the United States endorsed a failed coup attempt in Caracas in April, 2002." Apart from this, Latin American countries have been receiving low priority in the foreign policy of Bush administration. The entire region is full of oil, gas and other mineral resources. All these factors inspired the present leadership in China to develop relationship with Latin American countries. In view of China's expansion and modernisation of existing industries, it needs more oil and gas. Similarly, Latin American countries need to expand their market. Therefore, the cooperation between China and Latin American countries is complementary, not competitive. According to latest statistics, 40 percent growth in oil demand comes from China since China's consumption of oil has increased rapidly. Presently, China is consuming 12.8 million barrels a day. Venezuela is one of the first countries in Latin America, which has opened its door to China. Relations between China and Venezuela have been expanding since President Chavez's visit to Beijing in December 2004. Venezuelan administration signed a contract to sell China an average of 100,000 barrels of oil a day. It is understood that Venezuela, exporting 60 percent of its crude oil to the United States, has the largest oil reserve outside the Middle East region. Venezuelan President Chavez and Chinese Vice-President Zeng Qinghong at Caracas, Venezuela in January 2005 signed 19 cooperation agreements, particularly in the field of oil and gas. China began operating two oil fields in Venezuela. It will develop 15 declining oil fields and build a plant to produce boiler fuel used in Chinese power plants. China has already been invited to explore for oil in the Orinoco belt and for offshore natural gas. China and Brazil have been engaged in studying viability of joint operation in refinement, pipelines and exploration in the two countries. In this connection, Brazil signed an agreement with Chinese company, Sinopec, to construct a gas pipeline, which will cross Brazil. The flurry of China-Brazil business began less than two years ago following the exchange of visits between Brazilian President Luiz Inacio and Chinese President Hu Jintao. Brazil's mining company signed a deal recently with China's biggest steel company, Baosteel Shanghai group. China has also extended its hands in cooperation with Bolivia, Peru and Columbia. Most of the exploration of oil and gas constitute a major thrust in these countries. Mining appears to be a top priority for China, whether it is gas in Bolivia, tin in Chile or oil in Venezuela. Apart from Chavez of Venezuela, Argentina President Nestor and Brazilian President Luis Inaco Lula de Silva visited Beijing lately to strengthen bilateral relations with China. I would like to quote from BBC news analysis of June 7, which said, "While US has been fighting its war on terror, a new political idea has begun to punch through which such weight that alarm bells have begun ringing loudly in Washington." It seems that China has been aggressively exploiting the region, which is an untapped market, to meet its growing needs of oil and gas for economic development. As appears from the activities, China has embarked on a more pragmatic and forward-looking economic policy and has been focusing primarily on exports, investment and technology. Mohammad Amjad Hossain, a former diplomat, writes from Virginia.
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