Canada Well Positioned to Take Advantage of Trade Flows Between China and Latin America

Erik Bethel, Managing Partner of SinoLatin Capital discussed 'China's Economic and Political Strategies for Latin America' at The Canadian Council for the Americas (CCA)

Mar 16, 2011, 09:18 ET from SinoLatin Capital

TORONTO, March 16, 2011 /PRNewswire/ -- Erik Bethel, Managing Partner of SinoLatin Capital, a financial advisory firm focused exclusively on natural resources deals between China and Latin America, discussed the importance of Canada as it relates to trade flows between China and Latin America at a luncheon panel presented by the Canadian Council for the Americas (CCA). The luncheon event took place on March 11, 2011 at the Albany Club in Toronto.  

"China needs raw materials, particularly minerals. And most of the world's junior mining firms – many of them with assets in Latin America – are traded on the Toronto stock exchange," said Mr. Bethel at the discussion. Trade between Latin America and China has grown exponentially. Commodities such as minerals, fuel, forestry goods, and agriculture crops are a cornerstone of today's global economy. China's 30 years of sustainable economic growth, the emergence of a vibrant middle class, urbanization and massive spending in infrastructure has resulted in a significant increase in the total and per capita consumption of virtually every commodity, but particularly minerals. "So a fantastic way for investors to play the China story," quips Bethel, "Is by buying Canadian-listed mining companies."

According to SinoLatin Capital sources, commercial trade between China and Latin America grew from less than US$13 billion in 2000 to over US$140 billion last year. "We are just at the beginning of the M&A wave," notes Bethel. "China's demand for mineral resources will grow exponentially. We believe the main driver of this phenomenon is urbanization. There are currently around 800 million people living in rural areas, and the Chinese government is encouraging these individuals to move to the cities. Since the year 2000, roughly 20 to 25 million people have moved to urban areas annually. To put it in perspective, this represents an urban migration that is roughly the size of the country of Peru. Urban residents in China are purchasing cars, apartments and white goods. And all of these purchases require massive quantities of iron, copper and other minerals."

Mr. Bethel's comments on the mining sector came on the heels of the Prospectors and Developers Association of Canada (PDAC) Convention in Toronto, the largest mining conference in the world with over 22,000 participants. "Visiting with many of our clients at the PDAC convention, I can attest to the huge increase in demand from China. Last year, for example, one saw only few Asians at PDAC but this year the Chinese delegation was one of the largest. China is admittedly a new player in the mining world, but stay tuned for a flood of money coming from China to buy minerals assets," remarked Mr. Bethel.

About SinoLatin Capital

SinoLatin Capital ( is the premier investment platform between China and Latin America. It is a financial advisory and private equity firm that creates value for clients and investors while encouraging sustainable economic development in both regions. Headquartered in Shanghai's financial district and with offices in New York and Lima, Peru, SinoLatin Capital is the first merchant-banking firm focused exclusively on cross border transactions between China and Latin America.

About CCA

CCA is Canada's premier forum for discussion of the political and economic issues in the hemisphere that are critical to Canada, and particularly Canadian trade and investment. The CCA sponsors events that help to inform, educate and facilitate business and trade relations between Canada, Latin American and Caribbean nations. Erik Bethel was invited to participate and shared the discussion with US Ambassador Jeffrey Davidow and Dr. Evan Ellis, who focuses on defense transformation and Latin American security issues.

SOURCE SinoLatin Capital