China’s geopolitical and geoeconomic strategy in Latin America

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China’s geopolitical and geoeconomic strategy in Latin America

Country analysis – Second Partial

Please answer the following questions!

1. Which Chinese companies are the biggest players^[1] in the LATAM country of your analysis? In which sectors are they active? What is the volume of their investments, etc.?

Chile

Investment Sector 

AIIB Asian Infrastructure Investment Bank

 (multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond, Infrastructure to Chile)

Since it was officially opened in early 2016, the entity has granted loans worth 2,075 million dollars, mainly to countries in the south, southeast and central Asia.

China Construction Bank

The Chilean office said that in 2015 the Central Bank of China, or Chinese People's Bank, announced that China Construction Bank (CCB) had a capital base authorized in Chile of USD 200 million, which would be the official bank clearing yuan in Chile. , and "both nations signed a swap contract for the exchange of a maximum of USD 3.25 million in three years.

Infrastructure

State Power Investment Overseas (SPIC)

State Grid

Hebei Wenfeng Industrial Group

China Railways Group Limited

China Energy Engineering Corporation (CEEC),

China National Electric Engineering Chile (CNEEC),

They invested US $ 2,280 million in Chile. In addition, three more operations could be carried out this year, for US $ 870 million.

Winemakers

Yantai Changyu Pioneer Wine

Changyu

Jiangsu Yanghe Distillery Co. Ltd.

Yanghe, a subsidiary of the state-owned Jiangsu Yanghe Distillery Co. Ltd., paid US $ 66 million for 12.5% of Viña San Pedro Tarapacá, which is controlled by the local company CCU. Anghe exceeded the investment of almost US $ 50 million made in 2017 by the Chinese Yantai Changyu, by acquiring 85% of the Chilean wine group Bethwines.

The large Chinese investments in the sector are not new: it is worth remembering that one of the main operations was completed in 2010. In that year, the Chinese food giant Cofco acquired in US $ 18 million part of the assets of Viña Bisquertt, including a winery and 350 hectares of vineyards in Colchagua.

1. Please briefly introduce each of the biggest Chinese companies in the LATAM country. If there are more Chinese companies, concentrate on the 3-5 biggest ones:

China Construction Bank

Year of foundation: CCB was founded on 1 October 1954 under the name of People's Construction Bank of China

Main profile of the company (in general and in the LATAM country): 

China Construction Bank (Asia) Corporation Limited is the comprehensive and integrated commercial banking business platform of China Construction Bank Corporation in Hong Kong. Currently, CCB (Asia) has over 50 outlets in Hong Kong and offers a wide array of banking products and services to customers, including consumer banking services, commercial banking services, corporate banking services, private banking services, treasury business and cross-border financial services, etc.

China Construction Bank Corporation opened the first branch of the entity in Chile under the name China Construction Bank, Agency in Chile. The operating authorization was issued on May 9 by the Superintendency of Banks and Financial Institutions (SBIF) of Chile. the representative of the CCB in Chile, Shang Liping, declared that "the decision of China Construction Bank to establish a branch in Chile is based on the opening of the Chilean economy to foreign trade, its effective legal framework, its stable financial system, its strength skilled labor, and its good environment for investment.

Capitalisation (total and in LATAM country):

 848.100 millones de yuanes in China.

The Chilean office said that in 2015 the Central Bank of China, or Chinese People's Bank, announced that China Construction Bank (CCB) had a capital base authorized in Chile of USD 200 million, which would be the official bank clearing yuan in Chile. , and "both nations signed a swap contract for the exchange of a maximum of USD 3.25 million in three years".

Annual revenue (total and in LATAM country):

Revenue CN¥397.09 billion (2011)

Ownership structure (in general and in LATAM country:

Owner Government of China

Wang Hongzhang (Chairman)

Zhang Jianguo (President)

Xin Shusen (Vice President)

Shang Liping CEO Chile.

Year of entry into the LATAM country:   2 junio 2016

Number of employees (total and in LATAM country)

329,338 (2011)

State Grid

Year of foundation:

 SGCC was established on December 29, Corporate Profile2002

Main profile of the company (in general and in the LATAM country)

Enterprise approved by the State Council to carry out state-authorized investment and a pilot state holding company. It has been rated as an A-Class enterprise by SASAC evaluation on operation performances for 11 consecutive years. As the largest utility in the world, SGCC has a stable ranking of the 2nd on Fortune Global 500.

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