China in Latin America

Andes: repression ahead of Lima climate summit

On Dec. 3, a group of Shuar indigenous women from Ecuador's Amazon arrived in Quito to demand an investigation in the death of community leader José Tendetza Antún, who was planning on travelling to Peru for the Lima climate summit this month to press demands for cancellation of a mining project. Tendetza represented that Shuar community of Yanúa, El Pangui canton, Zamora Chinchipe province (see map). He disappeared Nov. 28 while on his way to discuss the mine matter with officials in the town of Bomboíza. The community launched a search, and his body was found Dec. 2 by local gold-miners. But the remains were turned over directly to the authorities, and quickly buried. Shuar leaders are demanding they be exhumed, and an autopsy conducted. Shuar leader Domingo Ankuash said based on what the miners said, he believes Tendetza had been beaten to death, and perhaps tortured.

Nicaragua: opposition mounts to canal scheme

The Nicaraguan government and Hong Kong Nicaragua Canal Development Investment Co. (HKND) will soon publish the "exact and definitive map” of the interoceanic canal, with construction slated for begin by year's end. In televised statement, project spokesperson Telemaco Talavera said details will also follow on feasibility and environmental impact studies, which involved a census of 29,000 people in the catchment area of 1,500 square kilometers. The canal will join the Caribbean Sea with the Pacific Ocean through a 278-kilometer trench, including 105 kilometers through the southern part of Lake Nicaragua, or Cocibolca (Sweetwater) as it is known in the local indigenous language. (TeleSUR, Nov. 12)

Ecuador: mobilizations for and against Correa

Supporters and opponents of Ecuador's President Rafael Correa took to the streets of Quito by the thousands Sept. 17—at one point clashing with each other, resulting in eight arrests. Authorities claimed several police officers were injured. Correa, who addressed his supporters at Plaza de la Independencia, boasted that the pro-government march was "bigger, much, much bigger." This was contested by organizers of the opposition march, who claimed to have mobilized some 5,000. The opposition rally was called by the Unitary Workers' Front (FUT), the country's principal trade union federation, in alliance with the indigenous organizations CONAIE and Ecuarunari. FUT called the march to oppose Correa's reform of the labor code, which union leaders denounced as a "neoliberal" roll-back of workers' rights. The indigenous groups joined to protest ongoing oil and mineral development.

BRICS nations plan new development bank

The BRICS group of five nations—Brazil, Russia, India, China and South Africa—held its sixth annual summit this year from July 14 to July 16 in Fortaleza in the northeastern Brazilian state of Ceará and in Brasilia, the Brazilian capital. The main business for the five nations' leaders was formalizing their agreement on a plan to create a development bank to serve as an alternative to lending institutions like the International Monetary Fund (IMF) and the World Bank, which are largely dominated by the US and its allies. Although the project will need approval from the countries' legislatures, the BRICS leaders indicated that the group's lending institution would be called the New Development Bank, would be based in Shanghai and would be headed for the first five years by a representative of India. The bank is to start off in 2016 with $50 billion in capital, $10 billion from each BRICS member. The BRICS nations will maintain control of the bank, but membership will be open to other countries; in contrast to the IMF and the World Bank, the New Development Bank will not impose budgetary conditions on loan recipients.

Nicaragua: inter-oceanic canal route approved

Nicaragua's Commission for the Development of the Grand Canal on July 7 approved a route for the proposed inter-oceanic canal through the Central American country. The waterway, to be built by Chinese company HKND, is slated to run from the Río Punta Gorda (South Atlantic Autonomous Region) on the Caribbean Coast to Brito (Rivas department) on the Pacific coast—a route more than three times as long as the 48-mile Panama Canal. The Commission said the canal will be operational by 2020, but questions have been raised on how the Hong Kong-based company plans to finance the project, estimated at $50 billion—nearly four times greater than Nicaragua's national economy. The canal is to be privately owned and operated. Ecologists have raised concerns about impacts on Lake Nicaragua (also known as Cocibolca), Central America's largest lake and an important fresh-water source for the country. There are fears the the water used by the canal's locks could seriously deplete the lake. The Río San Juan, which feeds the lake and forms the border with Costa Rica, would be dammed to feed the locks. Costa Rica has formally demanded the right to review environmental impact studies for the project before work begins. The Rama-Kriol indigenous people, whose territories in the Punta Gorda river basin would be impacted, are demanding to be consulted on the project. (La Prensa, Nicaragua, July 17; Tico Times, Costa Rica; July 15; Nicaragua Dispatch, ReutersEl Financiero, Mexico, July 8)

Cuba: foreign investment law takes effect

Cuba's new Foreign Investment Law went into effect on June 28, as was planned when the National Assembly of Popular Power passed the measure in March. The government is hoping to generate some $2.5 billion in investment each year under the law, which cuts tax rates for foreign investors from 30% to 15% and guarantees that most foreign-owned companies will be exempt from expropriation. Investment is expected to be focused on light industry, packaging, chemicals, iron and steel, building materials, logistics and pharmaceuticals; much of it will go to the Mariel port, 40 km west of Havana, which is being developed as a major "free trade zone." The government is currently studying 23 proposals for projects from Brazil, China, Spain, France, Italy, the Netherlands and Russia. The new law doesn't allow for private Cuban citizens to invest, and Cubans will work for the foreign companies through state-owned employment companies, not directly. (La Jornada, Mexico, June 29, from DPA, AFP, Prensa Latina; Global Post, June 29, from Xinhua)

Mexico: more narco-mineral exports seized

Mexican authorities on May 1 announced the seizure of a ship carrying 68,000 tons of illegal iron ore bound for China—hailed as the latest blow in a crackdown on the contraband mineral sideline by the Knights Templar drug cartel. Federal police were apparently tipped off by an anonymous phone call after the ship left Lazaro Cárdenas, the Pacific port in conflicted Michoacán state. Authorities detained the ship, the Jian Hua, off Manzanillo, the next major port up the coast, in neighboring Colima state. The ship's crew produced documents showing it had authorization to transport the iron ore. But authoriites said the paperwork listed a legal mine that was not the actual source of the contraband ore. The company operating the ship, China's Fujian Huarong Marine, has been given one month to prove to authorities that the ore was extracted legally. Mexican authorities say they have seized more than 200,000 tons of illegal iron ore so far this year, most of it headed for China.

Rival trade pacts vie for Pacific hegemony

In a move being openly portrayed as part of a race with the US-backed Trans-Pacific Partnership (TPP) for hegemony in the Asia-Pacific region, China has set up a working group to study the feasibility of a Free Trade Area of the Asia Pacific (FTAAP). The proposal comes ahead of a meeting in May of trade ministers from the Asia Pacific Economic Cooperation (APEC) forum, which China will host. Wang Shouwen, an assistant commerce minister, assured: "We think there will be no conflict between the FTAAP and the region's other FTAs under discussion." But reports note that the news comes just as progress of the TPP has snagged over Japanese insistence on protecting its agricultural and automotive sectors. Chinese President Xi Jinping in October said at the APEC business forum in Indonesia that Beijing will "commit itself to building a trans-Pacific regional cooperation framework that benefits all parties"—an obvious veiled criticism of the TPP. (Tax News, May 5; AFP, April 30)

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