Hostname: page-component-586b7cd67f-t8hqh Total loading time: 0 Render date: 2024-11-28T16:19:48.853Z Has data issue: false hasContentIssue false
  • English
  • Français

Development Dynamics of Chinese Resource-Based Investment in Peru and Ecuador

Published online by Cambridge University Press:  02 January 2018

Rubén González-Vicente
Rubén González-Vicente*
Affiliation:
Department of Asian and International Studies at the City University of Hong Kong. [email protected]
Get access Rights & Permissions [Opens in a new window]

Abstract

This article analyzes the developmental impact of two of the earliest investments made by Chinese companies in South America, the Shougang Corporation's mining activities in Peru and Andes Petroleum’s oil extraction operations in Ecuador. The article draws attention to the importance of contextualizing and disaggregating instances of Chinese resource-based investment in order to adequately grasp the complexity of processes that are contingent to particular regimes of natural resource governance, companies’ backgrounds, and the strength and nature of local reactions, among other factors. It thereby encourages a critical examination of Chinese investment in South America that explores how the characteristics of that investment are reshaped by the long and contested histories of resource extraction in the region, the promotion of and resistance to particular visions of development, the agency of multiply situated and complex actors, and the wider transnational production networks in which resource extraction processes are embedded.

Type
Research Article
Information
Latin American Politics and Society , Volume 55 , Issue 1 , Spring 2013 , pp. 46 - 72
Copyright
Copyright © University of Miami 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acosta, Alberto. 2003. Preparémonos para lo que se avecina. In El Oriente es un mito. Quito : Ediciones Abya-Yala. 19–51.Google Scholar
Agnew, John. 2005a. Sovereignty Regimes: Territoriality and State Authority in Contemporary World Politics. Annals of the Association of American Geographers 95, 2: 437–61.CrossRefGoogle Scholar
Agnew, John. 2005b. Hegemony: The New Shape of Global Power. Philadelphia : Temple University Press.Google Scholar
Alden, Chris. 2007. China in Africa. London : Zed Books.CrossRefGoogle Scholar
Alden, Chris, and Hughes, Christopher R.. 2009. Harmony and Discord in China's Africa Strategy: Some Implications for Foreign Policy. China Quarterly 199: 563–84.CrossRefGoogle Scholar
Appelbaum, Richard P., Parker, Rachel, and Cao, Cong. 2011. Developmental State and Innovation: Nanotechnology in China. Global Networks: A Journal of Transnational Affairs 11, 3: 298–314.CrossRefGoogle Scholar
Ballard, Chris, and Banks, Glenn. 2003. Resource Wars: the Anthropology of Mining. Annual Review of Anthropology 32: 287–313.CrossRefGoogle Scholar
Bebbington, Anthony, and Bebbington, Denise Humphreys. 2011. An Andean Avatar: Post-neoliberal and Neoliberal Strategies for Securing the Unobtainable. New Political Economy 16, 1: 131–45.CrossRefGoogle Scholar
Bebbington, Anthony, Bebbington, Denise Humphreys, Bury, Jeffrey, Lingan, Jeannet, and Muñoz, Juan Pablo. 2008. Mining and Social Movements: Struggles over Livelihood and Rural Territorial Development in the Andes. World Development 36, 12: 2888–905.CrossRefGoogle Scholar
Bernstein, Thomas P., and Lü, Xiaobo. 2000. Taxation without Representation: Peasants, the Central, and the Local States in Reform China. China Quarterly 163: 742–63.CrossRefGoogle Scholar
Brautigam, Deborah. 2009. The Dragon's Gift: The Real Story of China in Africa. Oxford : Oxford University Press.Google Scholar
Breslin, Shaun. 2005. Power and Production: Rethinking China's Global Economic Role. Review of International Studies 31, 4: 735–53.CrossRefGoogle Scholar
Bridge, Gavin. 2008, Global Production Networks and the Extractive Sector: Governing Resource-Based Development. Journal of Economic Geography 8, 3: 389–419.CrossRefGoogle Scholar
Bustamante, Teodoro, and Zapata, Oscar. 2007. Características de los contratos petroleros. In Detrás de la cortina de humo: dinámicas sociales y petróleo en el Ecuador, ed. Bustamante, . Quito : FLACSO-Ecuador/Petroecuador. 97–154.Google Scholar
Cardoso, Fernando Henrique, and Faletto, Enzo. 1979. Dependency and Development in Latin America. Berkeley : University of California Press.CrossRefGoogle Scholar
Carmody, Pradaig, and Taylor, Ian. 2010. Flexigemony and Force in China's Resource Diplomacy in Africa: Sudan and Zambia Compared. Geopolitics 15, 3: 496–515.CrossRefGoogle Scholar
Central Intelligence Agency (CIA). 2010. World Factbook. Country Comparison: Gdp per Capita (Ppp). https://www.cia.gov/library/publications/the-world-factbook/rankorder/2004rank.html. Accessed April 25, 2010.Google Scholar
Corden, Warner M. 1984. Booming Sector and Dutch Disease Economics: Survey and Consolidation. Oxford Economic Papers. New Series, 36, 3: 359–80.CrossRefGoogle Scholar
Coronil, Fernando. 1997 The Magical State: Nature, Money, and Modernity in Venezuela. Chicago : University of Chicago Press.Google Scholar
Davis, Graham A. 1995. Learning to Love the Dutch Disease: Evidence from the Mineral Economies. World Development 23, 10: 1765–79.CrossRefGoogle Scholar
De Soto, Hernando. 2000. The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York : Basic Books.Google Scholar
Domínguez, Jorge I. 2006. China's Relations with Latin America: Shared Gains, Asymmetric Hopes. Working Paper. Washington : Inter-American Dialogue.Google Scholar
Dussel Peters, Enrique. 2012. The Auto Parts-Automotive Chain in Mexico and China: Cooperation Potential? China Quarterly 209: 82–110.CrossRefGoogle Scholar
Economist. 2008. Poverty amid Progress: Peru. May 10.Google Scholar
Economist. 2009. Revolution! Please Give Generously; Ecuador's Election. April 25. http://www.economist.com/displayStory.cfm?story_id=13527399. Accessed May 2, 2009.Google Scholar
Eisenman, Joshua, Heginbotham, Eric, and Mitchell, Derek, eds. 2007. China and the Developing World: Beijing's Strategy for the Twenty-First Century. Armonk : M. E. Sharpe.Google Scholar
Emel, Jody, Huber, Matthew T., and Makene, Madoshi H.. 2011. Extracting Sovereignty: Capital, Territory, and Gold Mining in Tanzania. Political Geography 30, 2: 70–79.CrossRefGoogle Scholar
Escobar, Arturo. 2001. Culture Sits in Places: Reflections on Globalism and Subaltern Strategies of Localization. Political Geography 20, 2: 139–74.CrossRefGoogle Scholar
Expreso (Peru). 2008. Shougang amenaza al presidente del congreso. http://www.expreso.com.pe. Accessed December 23, 2008.Google Scholar
Fortune. 2008. Global 500. http://money.cnn.com/magazines/fortune/global500/2008/full_list/. Accessed April 5, 2009.Google Scholar
Gallagher, Kevin P., and Porzecanski, Roberto. 2010. The Dragon in the Room: China and the Future of Latin American Industrialization. Stanford : Stanford University Press.CrossRefGoogle Scholar
García Pérez, Alan. 2007. El síndrome del perro del hortelano. El Comercio (Lima), October 28. http://elcomercio.pe/edicionimpresa/Html/2007-10-28/el_sindrome_del_perro_del_hort.html. Accessed March 11, 2010.Google Scholar
González-Vicente, Rubén. 2011a. China's Engagement in South America and Africa's Extractive Sectors: New Perspectives for Resource Curse Theories. Pacific Review 24, 1: 65–87.CrossRefGoogle Scholar
González-Vicente, Rubén. 2011b. The Internationalization of the Chinese State. Political Geography 30, 7: 402–11.CrossRefGoogle Scholar
González-Vicente, Rubén. 2012a. The Political Economy of Sino-Peruvian Relations: a New Dependency? Journal of Current Chinese Affairs 41, 1: 97–131.CrossRefGoogle Scholar
González-Vicente, Rubén. 2012b. Mapping Chinese Mining Investment in Latin America: Politics or Market? China Quarterly 209: 35–58.CrossRefGoogle Scholar
Goodman, David S. G. 2009. Sixty Years of the People's Republic: Local Perspectives on the Evolution of the State in China. Pacific Review 22, 4: 429–50.CrossRefGoogle Scholar
Gregory, Derek. 2006. The Black Flag: Guantánamo Bay and the Space of Exception. Geografiska Annaler 88B, 4: 405–27.CrossRefGoogle Scholar
Haarstad, Havard, and Floysand, Arnt. 2007. Globalization and the Power of Rescaled Narratives: a Case of Opposition to Mining in Tambogrande, Peru. Political Geography 26, 3: 289–308.CrossRefGoogle Scholar
Haglund, Dan. 2009. In It for the Long Term? Governance and Learning among Chinese Investors in Zambia's Copper Sector. China Quarterly 199: 627–46.CrossRefGoogle Scholar
Harvey, David. 2003. The New Imperialism. Oxford : Oxford University Press.CrossRefGoogle Scholar
Harvey, David. 2005. A Brief History of Neoliberalism. New York : Oxford University Press.CrossRefGoogle Scholar
Hassard, John, Sheehan, Jackie, Zhou, Meixiang, Terpstra-Tong, Jane, and Morris, Jonathan. 2007. China's State Enterprise Reform: From Marx to the Market. New York : Routledge.CrossRefGoogle Scholar
Hilson, Gavin, and Potter, Clive. 2005. Structural Adjustment and Subsistence Industry: Artisanal Gold Mining in Ghana. Development and Change 36, 1: 103–31.CrossRefGoogle Scholar
Hoy (Ecuador). 2010. Petroleras chinas “dan batalla” por contratos. http://www.hoy.com.ec/noticias-ecuador/chinas-ponen-estate-quieto-al-gobierno-442137.html. Accessed June 10, 2011.Google Scholar
Instituto Nacional de Estadística y Censos (INEC). 2001. Censo de población y vivienda 2001. http://64.46.67.221/cgibin/RpWebEngine.exe/PortalAction?%20and%20MODE=MAIN%20and%20BASE=ECUADOR21%20and%20MAIN=WebServerMain.inl. Accessed April 3, 2009.Google Scholar
Inter Press Service (IPS). 2011. Comienza el exilio de las transnacionales. http://www.ipsnoticias.net/nota.asp?idnews=97391. Accessed May 20, 2011.Google Scholar
Jenkins, Rhys, Peters, Enrique Dussel, and Moreira, Mauricio Mesquita. 2008. The Impact of China on Latin America and the Caribbean. World Development 36, 2: 235–53.CrossRefGoogle Scholar
Jiang, Julie, and Sinton, Jonathan. 2011. Overseas Investments by Chinese National Oil Companies. Paris : International Energy Agency.Google Scholar
Jiang, Wenran. 2009. Fuelling the Dragon: China's Rise and Its Energy and Resources Extraction in Africa. China Quarterly 199: 585–609.CrossRefGoogle Scholar
Journal of Current Chinese Affairs. 2012. Special Issue: Latin America's Response to China's Rise. 41, 1.Google Scholar
Kaplinsky, Raphael, and Messner, Dirk. 2008. Introduction: the Impact of Asian Drivers on the Developing World. World Development 36, 2: 197–209.CrossRefGoogle Scholar
Kaplinsky, Raphael, and Morris, Mike. 2009. Chinese Fdi in Sub-Saharan Africa: Engaging with Large Dragons. European Journal of Development Research 21: 551–69.CrossRefGoogle Scholar
Karl, Terry Lynn. 2007. Ensuring Fairness: The Case for a Transparent Fiscal Social Contract. In Escaping the Resource Curse, ed. Humphreys, Macartan, Sachs, Jeffrey D., and Stiglitz, Joseph E.. New York : Columbia University Press. 256–85.Google Scholar
Klapp, Merrie G. 1982. The State: Landlord or Entrepreneur? International Organization 36, 3: 575–607.CrossRefGoogle Scholar
Lee, Ching Kwan. 2009. Raw Encounters: Chinese Managers, African Workers, and the Politics of Casualization in Africa's Chinese Enclaves. China Quarterly 199: 647–66.CrossRefGoogle Scholar
MacKinnon, Danny, and Phelps, N. A.. 2001. Devolution and the Territorial Politics of Foreign Direct Investment. Political Geography 20, 3: 353–79.CrossRefGoogle Scholar
Mahoney, James. 2003. Long-run Development and the Legacy of Colonialism in Spanish America. American Journal of Sociology 109, 1: 50–106.CrossRefGoogle Scholar
Martínez Alier, Joan. 2010. Controversias en el Ecuador sobre la iniciativa Yasuní Itt y el pre-acuerdo de fideicomiso con el Pnud. Ecología Política, January 10. http://www.ecologiapolitica.info/ep/PNUD%20Yasuni.pdf. Accessed March 15, 2010.Google Scholar
Mawdsley, Emma. 2007. The Changing Geographies of China-Africa Relations, 1949–Present. Geography Compass 1, 3: 405–21.CrossRefGoogle Scholar
Mawdsley, Emma. 2008. Fu Manchu versus Dr. Livingstone in the Dark Continent? Representing China, Africa and the West in British Broadsheet Newspapers. Political Geography 27, 5: 509–29.CrossRefGoogle Scholar
McFarlane, Colin. 2006. Transnational Development Networks: Bringing Development and Postcolonial Approaches into Dialogue. Geographical Journal 172, 1: 35–49.CrossRefGoogle Scholar
Nolan, Peter. 1998. Indigenous Large Firms in China's Economic Reform: The Case of Shougang Iron and Steel Corporation. Research Notes and Studies no. 12. London : Contemporary China Institute, School of Oriental and African Studies.Google Scholar
Nolan, Peter. 2005. China at the Crossroads. Journal of Chinese Economic and Business Studies 3, 1: 1–22.CrossRefGoogle Scholar
O'Laughlin, Bridget. 2008. Governing Capital? Corporate Social Responsibility and the Limits of Regulation. Development and Change 39, 6: 945–57.CrossRefGoogle Scholar
Organización Latinoamericana de Energía (OLADE). 2005. Informe Energético 2004. Quito : OLADE.Google Scholar
Pieke, Frank N. 2009. The Good Communist: Elite Training and State Building in Today's China. Cambridge : Cambridge University Press.CrossRefGoogle Scholar
Platts Oilgram News. 2008. Venezuela-Ecuador Refinery May Be Built in 4–5 Years. 86, 23 (February 1): 12.Google Scholar
Prebisch, Raúl. 1950. The Economic Development of Latin America and Its Principal Problems. New York : United Nations.Google Scholar
Programa Laboral de Desarrollo (PLADES). 2007. Proyecto vigilancia social de Emns, Shougang Corporation, Shougang Hierro Peru S.a.a. http://theglobalnetwork.net/publicaciones/estudios/vigilancia_social/informe_2006_2007/shougang_shougang_hierro_peru.pdf. Accessed February 10, 2009.Google Scholar
Reserva de Producción Faunística Cuyabeno (RPFC). 2009. Amenazas. http://www.reservacuyabeno.org/home.html. Accessed May 24, 2009.Google Scholar
Rosales Pacheco, Joel. 2008. Mayor of Marcona, Peru. Author interview. Marcona , October.Google Scholar
Guzmán, Serna, Fredy, Isaac, Cruz, Juan Perry, and Trelles, Miguel Guevara. 2007. Informe final del grupo de trabajo encargado seguimiento sobre las privatizaciones de la empresa Shougang Hierro Perú S.A.A. y Electro Sur Medio S.A.A. Lima : Comisión de Energía y Minas del Congreso de la República.Google Scholar
Shaxson, Nicholas. 2007. Oil, Corruption and the Resource Curse. International Affairs 83, 6: 1123–40.CrossRefGoogle Scholar
Peru, Shougang Hierro. 2010. Quiénes somos. http://www.shougang.com.pe/quienes_somos.htm. Accessed February 1, 2010.Google Scholar
Shougang Hierro Peru Workers' Union. 2008. Union Documents on Salary Scales.Google Scholar
Sigley, Gary. 2006. Chinese Governmentalities: Government, Governance and the Socialist Market Economy. Economy and Society 35, 4: 487–508.CrossRefGoogle Scholar
Spiegel, Sam J. 2011. Governance Institutions, Resource Rights Regimes, and the Informal Mining Sector: Regulatory Complexities in Indonesia. World Development 40, 1: 189–205.CrossRefGoogle Scholar
Spiegel, Samuel J., and Le Billon, Philippe. 2009. China's Weapons Trade: from Ships of Shame to the Ethics of Global Resistance. International Affairs 85, 2: 323–46.CrossRefGoogle Scholar
Steinfeld, Edward S. 1998. Forging Reform in China: The Fate of State-Owned Industry. Cambridge : Cambridge University Press.CrossRefGoogle Scholar
Strauss, Julia C., and Armony, Ariel C.. 2012. From the Great Wall to the New World: China and Latin America in the 21st Century. Cambridge : Cambridge University Press.Google Scholar
Szablowski, David. 2002. Mining, Displacement and the World Bank: a Case Analysis of Compania Minera Antamina's Operations in Peru. Journal of Business Ethics 39, 3: 247–73.CrossRefGoogle Scholar
Taylor, Ian. 2008. Sino-African Relations and the Problem of Human Rights. African Affairs 107, 426: 63–87.CrossRefGoogle Scholar
United Nations Development Program (UNDP). 2010. Human Development Report 2010. the Real Wealth of Nations: Pathways to Human Development. http://hdr.undp.org/en/reports/global/hdr2010. Accessed July 15, 2011.Google Scholar
Valdivia, Gabriela. 2008. Governing Relations between People and Things: Citizenship, Territory, and the Political Economy of Petroleum in Ecuador. Political Geography 27, 4: 456–77.CrossRefGoogle Scholar
Vines, Alex, Wong, Lillian, Weimer, Markus, and Campos, Indira. 2009. Thirst for African Oil: Asian National Oil Companies in Nigeria and Angola. London : Chatham House.Google Scholar
Watts, Michael. 2004. Resource Curse? Governmentality, Oil and Power in the Niger Delta, Nigeria. Geopolitics 9, 1: 50–80.CrossRefGoogle Scholar
Wise, Carol, and Quiliconi, Cintia. 2007. China's Surge in Latin American Markets: Policy Challenges and Responses. Politics and Policy 35, 3: 410–38.CrossRefGoogle Scholar
Yeung, Henry Wai-chung. 1997. Business Networks and Transnational Corporations: a Study of Hong Kong Firms in the Asean Region. Economic Geography 73, 1: 1–25.Google Scholar
Zhan, James Xiaoning. 1995. Transnationalization and Outward Investment: the Case of Chinese Firms. Transnational Corporations 4, 3: 67–100.Google Scholar
Zhang, Jin. 2004. Catch-Up and Competitiveness in China: The Case of Large Firms in the Oil Industry. London : Routledge.CrossRefGoogle Scholar
Zhang, Yongjin. 2003. China's Emerging Global Business. New York : Palgrave Macmillan.CrossRefGoogle Scholar