February 10, 2005
China to invest in Venezuela

(El Universal) - "Venezuela is now the first Latin American country to attract Chinese investments in the past years.

During President Chávez's administration, he has made three Presidential visits to Pekin (1999,2001 and 2004) and there have been two visits from top Chinese officials to Venezuela (2001, 2005), as well as a web of bilateral agreements in different areas (letters of intention, pre-agreements, agreements and cooperation treaties).

'Some of these agreements have been shelved in foreign affairs offices, but others have been finalized and they represent investments for more than 800 million dollars in the past six years', said Mimy Mock, President of CAVENCHI, the Venezuelan Chinese Chamber of Commerce, Industry, Agriculture and Tourism.

She highlighted that if expectations for 2005 are fulfilled, Venezuela could absorb up to 800 million dollars in additional resources from China, especially in areas of energy, mining, agriculture and infrastructure.

She also talked about the signing of nineteen agreements between both countries during the visit of Chinese Vice President, Mr. Zeng Qinhong. The Venezuelan electrical sector is included in this group of agreements. A cooperation agreement was also signed with CVG Minerven for the exploration and exploitation of gold.

Railway network

Mrs. Mock also said that both governments will promote strategic commercial alliances 'but is the private companies who execute this integration. Without private participation these agreements cannot be carried out'.

When referring to the agreements that have been signed, she talked about Venezuela's Central/Western Railway System. 'The work has begun and in 28 months we expect to have a railway parallel to the existing one between Carabobo, Yaracuy, Lara and Portuguesa'.

In the infrastructure sector, there are plans to built roads, motorways, undergrounds, ports and airports.

Technology

Mrs. Mock also talked about agreements regarding agricultural cooperation, saying 'it is time for Venezuela to stop importing tractors, which are so necessary in this type of activity. Venezuela must start manufacturing tractors here and China is willing to transfer technology in order to support this. Venezuela must work towards the goal of being the main tractor manufacturer in the region'.

The President of the Venezuelan Chinese Chamber also explained about the 350 million dollar credit agreement between Venezuelan Ministry of Infrastructure, CONAVI, and the Chinese company Complat, which will be used in housing solutions.

Among other agreements, Mrs. Mock said there have been talks about a special telecommunications satellite with Chinese technology".