Brazil & Southern Cone - February 2011 (ISSN 1741-4431)

According to official Chinese figures, at the end of 2009 17% of China's non-financial Foreign Direct Investment (FDI) was destined for Latin America and the Caribbean. This figure, however, is greatly distorted by China's use of off-shore tax havens in the region as relays for repatriating capital. While Chinese figures cite US$41bn in total FDI stock in Latin America, the United Nations Conference on Trade and Development believes that over 95% of this is stashed offshore in the Cayman and British Virgin Islands, to be used for domestic reinvestment in China.

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