China's Major Port Upgrades in Latin America Make the U.S. Nervous!
On January 2, the Hong Kong South China Morning Post reported: "Chinese companies such as COFCO International and COSCO Shipping have made large-scale investments in ports in Latin America in recent years. The 285 million U.S. dollar expansion project of Santos Port in Brazil will become the largest bulk cargo port in the region. The 3.5 billion U.S. dollar construction project of Chancay Port in Peru is expected to be completed by 2035, ranking it among the top three ports in the region and radiating to multiple countries. This layout has changed the global soybean trade flow. In the first ten months of last year, Brazil's soybean exports to China reached 79 million tons, accounting for nearly 80% of its total exports. By contrast, since the trade friction in 2018, the share of U.S. soybeans in the Chinese market has been taken over by Latin America. Last year's export volume was the lowest in recent years, with a significant decline in port business volume. The increase in New Orleans port area was less than 3%, while the Seattle port area dropped by 81%. Even if China and the U.S. reached a procurement agreement, American farmers still face great difficulties in returning to the Chinese market."
[Witty] Infrastructure Sounds an Alarm; The Disgrace of American Soybean Farmers Has Just Begun! In 2018, when Trump waved his tariff bat, he unintentionally pushed China, the world's buyer of 60% of soybeans, toward Latin America. Now, Chinese enterprises are building the 3.5 billion U.S. dollar Chancay Port in Peru and expanding the Santos Port in Brazil with 285 million U.S. dollars. With the investment in 23 Latin American ports, the trade pattern of the next generation has already been locked in. American soybean farmers watch helplessly as Brazil's soybean exports to China surged to 79 million tons, accounting for nearly 80% of its exports. Meanwhile, their own exports to China last year hit a low not seen since 2018, with the Seattle port exports dropping by 81%. More ironically, the U.S. has no port in the top 50 globally, yet it blames China for shifting its attention. Goldman Sachs predicts that China's dependence on soybean imports will fall below 30%. American farmers can only lament that they are only included because of low prices. This trade tragedy, triggered by politicians' recklessness, is ultimately a defeat of hegemonic thinking by the hard power of infrastructure, becoming a farcical footnote on the international stage!
Original article: toutiao.com/article/1853201710784519/
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