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DatabankMay 1 2018

US keeps lead in Latam FDI - for now

Keen to hold the geopolitical balance of power in Latin America, the US is beating China in financial services FDI into the region – but not by much, as Silvia Pavoni reports.
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While China is strengthening its trade and investment relations with Latin America and the Caribbean, the US retains the upper hand in greenfield foreign direct investment (FDI) in the region. The US is intent on keeping the geopolitical lead to fend off Beijing’s growing influence in its southern neighbour. This is also true for financial services investments – for now.

According to data from fDi Intelligence, in 2017 US companies’ FDI into the region was four-and-a-half times that of China’s: $17.28bn against $3.83bn. But investments in financial services hubs tell a more nuanced story, as the US’s $352m and eight financial services projects run very close to China’s $280.9m, which, through a single investment by Shanghai-based New Development Bank, neared the US total.

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Silvia Pavoni is editor in chief of The Banker. Silvia also serves as an advisory board member for the Women of the Future Programme and for the European Risk Management Council, and is part of the London council of non-profit WILL, Women in Leadership in Latin America. In 2019, she was awarded an honorary fellowship by City University of London.
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