Olive Yao
06-01-11, 13:24
Reference ID 09SHANGHAI170 (http://213.251.145.96/cable/2009/04/09SHANGHAI170.html)
Created 2009-04-15 03:03
Released 2011-01-02 21:09
Classification CONFIDENTIAL
Origin Consulate Shanghai
¶1. (C) Summary: Shanghai scholars said China's interest in Latin America remains primarily economic - securing natural resources and diversifying export markets amid the global economic downturn. China recognizes that it is facing an image problem in Latin America and is taking steps to address negative perceptions, said the scholars. China's strategy in Latin America is clear: it wants to "control the supply of commodities," said the Brazilian Consul General in Shanghai. Chinese investors, encouraged by the Chinese Government, are rushing to invest in Brazil's natural resources. The Argentinean Consul General in Shanghai, however, expressed frustration at the slow pace of Chinese investment in his country. Brazilian and Argentinean firms in East China are increasingly focused on manufacturing for the Chinese domestic market. End summary.
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China Facing Image Problem
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¶5. (C) The bigger problem for China in Latin America right now, said the scholars, is its image among the local population. Zhang said competition from Chinese imports, like textiles and shoes, is creating negative feelings towards China among countries with large low-end manufacturing industries, mentioning Mexico as an example. There is also a perception in Latin America that Chinese investors are like "locusts," extracting minerals and natural resources and leaving very little of lasting value behind, said the scholars. Chinese companies, on the other hand, find it difficult to invest in Latin America, according to Niu. Chinese companies complain about strong labor unions and cultural conflicts in Latin America, including a "different work ethic" between Latin American workers and Chinese workers, said Niu. Chinese companies thus prefer to import workers from China for projects in Latin America, often at the cost of local resentment.
¶6. (C) The Chinese Government recognizes it faces a public relations challenge in Latin America, said the scholars. Chinese companies in Latin America, for example, are being encouraged by the Chinese Government to hire more local employees, according to Wu. Zhang noted that China became a donor member of the Inter-American Development Bank (IADB) in January 2009 and donated USD 350 million, which is "money that many Latin American countries need". He thinks China's outreach to the IADB, along with consecutive high level visits to the region by Chinese President Hu Jintao in November 2008 and Vice President Xi Jinping and Vice Premier Hui Liangyu in February 2009, highlight China's efforts to improve overall relations, including its image, in Latin America. (Ref A).
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Created 2009-04-15 03:03
Released 2011-01-02 21:09
Classification CONFIDENTIAL
Origin Consulate Shanghai
¶1. (C) Summary: Shanghai scholars said China's interest in Latin America remains primarily economic - securing natural resources and diversifying export markets amid the global economic downturn. China recognizes that it is facing an image problem in Latin America and is taking steps to address negative perceptions, said the scholars. China's strategy in Latin America is clear: it wants to "control the supply of commodities," said the Brazilian Consul General in Shanghai. Chinese investors, encouraged by the Chinese Government, are rushing to invest in Brazil's natural resources. The Argentinean Consul General in Shanghai, however, expressed frustration at the slow pace of Chinese investment in his country. Brazilian and Argentinean firms in East China are increasingly focused on manufacturing for the Chinese domestic market. End summary.
(...)
China Facing Image Problem
---------------------------
¶5. (C) The bigger problem for China in Latin America right now, said the scholars, is its image among the local population. Zhang said competition from Chinese imports, like textiles and shoes, is creating negative feelings towards China among countries with large low-end manufacturing industries, mentioning Mexico as an example. There is also a perception in Latin America that Chinese investors are like "locusts," extracting minerals and natural resources and leaving very little of lasting value behind, said the scholars. Chinese companies, on the other hand, find it difficult to invest in Latin America, according to Niu. Chinese companies complain about strong labor unions and cultural conflicts in Latin America, including a "different work ethic" between Latin American workers and Chinese workers, said Niu. Chinese companies thus prefer to import workers from China for projects in Latin America, often at the cost of local resentment.
¶6. (C) The Chinese Government recognizes it faces a public relations challenge in Latin America, said the scholars. Chinese companies in Latin America, for example, are being encouraged by the Chinese Government to hire more local employees, according to Wu. Zhang noted that China became a donor member of the Inter-American Development Bank (IADB) in January 2009 and donated USD 350 million, which is "money that many Latin American countries need". He thinks China's outreach to the IADB, along with consecutive high level visits to the region by Chinese President Hu Jintao in November 2008 and Vice President Xi Jinping and Vice Premier Hui Liangyu in February 2009, highlight China's efforts to improve overall relations, including its image, in Latin America. (Ref A).
(...)