Again, i dont disagree. Clearly, China is a shark when ot comes to negotiating trade terms. I suppose VZ accepted those terms...that is on them. China is not a charity, they are going to try to get great terms. Now that being said, I am not sure VZ is apples for apples with Chile. VZ is over a barrel and the whole world knows it. They have very few friends and trade allies. Chile and china on the other hand have a somewhat more balances trade relationship. Chile is not over a barrel. I guess my point is that China is the only superpower in proximity of shipping lanes to chile. Not the eu, not the us, not russia, etc. China is directly across the Pacific and chile has the rural farm land and produce that China desires as well as raw ore and lithium.AnciaVagar wrote: ↑Fri May 11, 2018 8:41 pmYou should read the terms China imposed on Venezuela in their "loans."
According to the China University of Petroleum, Beijing -- a government think-tank for policy -- the pay back is based on a fixed reference price of oil. When the price is higher, the same number of barrels is owed; when the price is lower, the same money is owed. A guaranteed lose-lose for Vz. Of course most of the money was not transferred, but remained as a credit (but still owed regardless of delivery) in China to buy Chinese goods and services at jacked-up prices. So lose-lose-lose for Vz. And, China knew the Cuban enchufados would steal most of the cash, so lose-lose-lose-lose for the Venezuelan el pueblo.
How's that high speed rail system coming along?
So let me be blunt: Chile and Chilean businesses should stay as far away from China and Chinese businesses as possible.
To take china off the table as some are suggesting, I just dont see a practical replacement. Australia? Sure there is some trade with them, again because of shipping lane proximity, but they arent really a superpower like the US, EU, Russia, or China. They simply dont have the scale that the supers offer. I just dont see a viable replacement. China is the most practical superpower trade partner for chile. And I think, at least compared to other south american countries, Chile garners the most respect from China. Clearly they dont respect VZ but that isnt saying much...who really does in the world. An argument could be made for Brazil in primacy to Chile, but i think Brazil is not far behind argentina. A mess in more ways than one where the chickens will be coming home to roost soon. Chile is still the richest significant country per capita in all of south and central america. China knows that and it is keenly aware of the trade benefits chile can off it (with stability) that ni other country can in shipping lane proximity