Hot on the heels of its $200 billion energy deals with Iran (China Rocks the
) China has now moved into the US sphere of economic influence.
South America, long considered the US’s “backyard” and the victims of countless political machinations by US intelligence agencies, is benefiting from
China’s expansion of trade deals.
China’s President Hu Jintao is on a two-week tour of South America where trade and investment deals with Brazil
announced. It is part of a $100 billion investment in South America by China.
Brazil has recognized China as a market economy and China has opened its beef and chicken markets to Brazil. In addition China will invest $5-7
billion to improve infrastructure such as roads, railways and ports and promised to order at least 10 airplanes from Brazilian maker Embraer.
In Argentina deals were signed for $20 billion in investments including railway improvements and also agreements on education, tourism and trade.
The influx of capital investments is a welcome reprieve for Argentina and Brazil after devastating economic crises in the last few years.
Next stops for Mr. Hu are Chile
for the APEC summit and then on to Cuba
It seems that China is making its move to challenge US supremacy in the oil markets as well as in South American markets.
Since the PNAC people are now in charge and the PNAC stated that no country would be permitted to challenge US hegemony this does not bode well for
economic and political stability in the world.
In other news, the US dollar has hit yet another all time low against the Euro.
Oh well...It was fun being number one for a while…
Argentina gets China investment
Dollar hits new low against euro