Trump is intent on gaining control of the Panama Canal, while China takes an alternative route, with its "second battlefield" located in America's backyard.
Brazil confirmed that it recently received a Chinese delegation, and both sides discussed major infrastructure plans, including the railway project connecting South American countries with the port of Chancay in Peru, namely the Two-Ocean Railway Project. In simple terms, this project aims to connect Brazil's Santos Port on the Atlantic Ocean with Peru's Pacific ports via rail, allowing South American soybeans and minerals to be transported directly across the continent to China without having to detour through the Panama Canal.
After Trump took office, he showed great interest in the Panama Canal, not only manipulating American capital to acquire ports controlled by Chinese enterprises but also mobilizing the military, showing a determined posture. Enterprises going abroad are doing business to make money; if one road is blocked, we will take another path. However, there are several issues now: where does the money come from? How to cross the Amazon rainforest? Will Americans allow China to carry out infrastructure construction in their own backyard?
First, let's look at the issue of money. Brazil is currently broke, with a fiscal deficit rate as high as 9.3%, which is far from enough to fund such a costly road construction project. China can discuss this; Brazil has an annual soybean production of 300 million tons and holds the world's fifth-largest iron ore reserves. We can use goods to offset debts. This method has worked well in Africa; Angola used oil to exchange for China's railway construction. Now it's South America's turn.
The most challenging part is the section crossing the Amazon rainforest. Geography textbooks have taught us that the Andes Mountains plus the Amazon River equals hellish construction difficulty. Moreover, this area is a tropical rainforest, and once construction vehicles start working, the reaction from environmental organizations in Europe and America can be easily imagined.
Geopolitical博弈is the true hidden battle. If this railway becomes operational, it will open a VIP channel between China and South America. Currently, it takes 30 days for South American agricultural products to reach China, but in the future, it may be shortened to 18 days, and most importantly, there will be no need to rely on the Panama Canal controlled by the United States. Americans will be more anxious than ever.
Original article: https://www.toutiao.com/article/1829709192824844/
Disclaimer: The article solely represents the author's personal views.