Bolivia has inaugurated a steel plant funded by a Chinese loan, aiming to reduce reliance on metal imports and bolster the economy. President Arce highlighted the project’s potential to produce 200,000 tons of steel annually, replacing imports and curbing currency outflows. This initiative aligns with China’s broader economic strategy in Latin America amidst U.S. geopolitical pressures.
Bolivia recently inaugurated a steel plant funded primarily by a loan from China, aimed at reducing its dependency on metal imports. Located in Puerto Suárez, near the Brazil border, the Mutun megaproject cost $546 million and is a significant part of China’s expanding influence in South America through its economic initiatives.
President Luis Arce emphasized that the primary goal of the plant is for Bolivians to benefit from a long-dormant natural resource. The facility is expected to produce approximately 200,000 tons of steel annually, replacing nearly 50% of metal imports, thus preventing a currency outflow exceeding $250 million each year.
Bolivia is currently facing severe economic challenges, having depleted much of its international reserves on subsidized fuel locally since 2023. The project aligns with China’s “Belt and Road Initiative,” which aims to strengthen global economic ties.
As Latin America experiences increasing pressure from Washington in response to China’s global outreach, countries in the region are navigating a complex geopolitical landscape. The site is estimated to contain over 40 billion tons of iron ore, making it one of the largest iron ore deposits worldwide, according to government estimates.
The inauguration of the steel plant in Bolivia, primarily financed by a Chinese loan, reflects the country’s attempt to bolster its economy by reducing dependency on imports and utilizing its natural resources. This project is pivotal in addressing Bolivia’s economic challenges while also illustrating the growing influence of China in South America. The potential production capacity of the plant could significantly alter Bolivia’s economic landscape and lead to reduced currency outflows. Concerns linger about the geopolitical dynamics at play as countries in Latin America must navigate pressures from both China and the United States effectively.
Original Source: www.france24.com
