Hunan leads the way into Latin America

Zoomlion uses its advanced heavy machines for a construction project in Peru. CHINA DAILY

With abundant resources, a growing economy and an increasingly stable political environment, the Latin American region has become a new market for enterprises from Hunan province.

According to data from the China Council for the Promotion of International Trade's Hunan branch, the province's import and export volume to Latin America in 2013 reached $2.17 billion, up 11.3 percent from 2012.

A number of local enterprises in Hunan have invested in South America, including renowned railway equipment manufacturer CSR and building machinery maker Zoomlion.

Latin America is a significant developing economy and comprises 34 countries and regions.

In recent years, it has become China's important partner both politically and economically.

Chinese President Xi Jinping visited the Latin American region last year and again this July. The region has become one of the most popular markets in foreign trade.

Business ties between Hunan and Latin America began to flourish in 2000. Broad Air Quality Tech, a company that develops and produces air cleaning technologies and products, expanded its operations to Mexico, Brazil, Chile and many other Latin American countries.

The company was invited to the 2010 United Nations Climate Change Conference in Cancun, Mexico. It presented its energy-saving and emission-reduction technologies.

In August this year, the Hunan provincial government sent a delegation to the Caribbean and South American regions. A range of cooperation projects were agreed in Suriname.

The delegation also founded the province's first foreign business delegation bureau in the Caribbean and South America.

A residential project initiated by the provincial government in Suriname was also sealed during the visiting. Broad Homes Industrial International Co from Hunan was contracted to build 18,000 houses and apartments for the project.

Jiang Jie, a senior executive at Broad Homes Industrial International Co, said that construction had started and about 200,000 square meters of apartments were due to be completed by the end of the year. The entire project is scheduled to finish in five years.

"We hope that in five years the project will become a leading one in the local construction industry," said Jiang.

In the past decade, Latin America has seen rapid economic growth. Its abundant resources in agriculture, forestry, mining and fishery industries also add to its appeal for investors.

For Hunan, a province with strengths in the manufacturing sector, these advantages represent large potential for cooperation.

Tidfore Heavy Equipment Co is headquartered in Hunan and has several overseas branches in Latin America. The company recently signed a cooperation project with Synergy Corp Brazil and plans to set up a joint venture company in Brazil to further develop in the local market.

During a visit to the Caribbean and South America, Xu Xiangping, head of the department of commerce in Hunan province, said auto parts, textiles and everyday commodities also had huge appeal to the region's markets.

"Enterprises in the Latin American area are very willing to open up and eager to cooperate. If we can grab this opportunity to be a forerunner, the potential for investment and trade is huge," said Xu.

Yang Guangyao, vice-president of Broad Air Quality Tech, said that enterprises from Hunan should be led by entrepreneurs with a global perspective to better explore the Latin American market.

"We must understand the local market and follow its own rules. Through localization, we will find our own way to develop," said Yang.