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Latin American exports increasingly dependent on China

A Working Paper dated August 2015 by BBVA, a Spanish global bank, highlights the extent of various Latin American countries' export dependency on China,

"According to our estimates, dependency on China increased overboard across Latin America for all countries and all sectors between 2008 and 2014. Absolute dependency levels were highest in Costa Rica, Colombia, Uruguay, Venezuela, Brazil, Panama, Peru, Chile, Guyana and Argentina. Of these, the largest exporters to China, namely Brazil, Argentina, Chile, Peru, Colombia, and Venezuela, featured high dependencies concentrated around just four commodities: soy in the form of soybeans and soybean oil; crude oil; copper in the form of copper ore, copper cathodes and unrefined copper; and iron ore. These four commodities, accounted for 80% of the regions total exports to China."

Download 15-26_Working-Paper_China-and-Latin-America2

Why Egypt is building a wider Suez Canal?

An article in The Economist (8 August, 2015) shows that Egypt is building "A Bigger and Better Suez Canal". "As a feat of brawn, it is impressive. But is it necessary?", the article asks.

Egypt's apparent display of brawn is extremely uncustomary, given her finances. Also, the Economist article doesn't fully explain the need for a much-wider canal at such costs. What kind of container vessels are the Egyptians expecting? What major revenue stream will change the picture entirely? 

The following may give some clue -

(a) Work is steaming ahead on the construction of a much larger and wider Chinese-funded canal through Nicaragua, which is likely to marginalize the Panama Canal under the shadow of the United States;

(b) The Suez Canal is a key route in China's One Belt, One Road pan-continental strategy. The new and wider Nicaragua Canal will enable China' extra-large container vessels to travel from the East Coast to the Pacific, connecting them to the New Maritime Silk Road traffic;

Download One Belt, One Road Map 

(c) China is building and is going to manage a new Special Economic Zone in the Suez area. This SEZ is designed to connect with the Mediterranean economies as well as Islamic/Arab economies in the Middle East. 

Download Paper-on-a-new-china-africa-financial-investment-business-partnership-4 (p.13 Item (e))

The whole geo-economics of the region are poised to change dramatically. 

While the United States counts her aircraft carriers and military allies, China is quietly building a global business empire connected by trade and infrastructure.