Investment by China-based companies in South American infrastructure and emerging tech brands is both an opportunity and a challenge for the region.
Geo-politics plays a major part in the economy of the continent, especially when managing the relationship with its noisy neighbor to the north, but governments may consider the most progressive option rather than the one that maintains the status quo and stability.
While the U.S. and allies distance themselves from Chinese tech companies such as Huawei, China has become Latin America's top investor of its booming technological sector.
Tencent invested $180 million in Latin America's top unicorn company, Brazilian fintech firm Nubank.
Large Chinese companies have acquired local startups, such as Didi Chuxing purchasing Brazil's 99 Taxis and initiatives such as Chinnovation, which pairs up Latin American and Chinese tech investors, signal this trend will only increase.
Even Baidu’s discontinued $60 million fund for Brazilian startups last year, left the country saying they intended to continue to invest but directly from their home front.
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Is Latin America prepared for China's booming tech investments?