China is investing in infrastructure in South America to secure its agricultural imports, including by building an export terminal in Santos, Brazil. The port of Santos, the main export point to China, suffers from limited capacity and infrastructure problems. Cofco, a Chinese agricultural company, is developing a terminal there to increase its annual export capacity to 14 million tons. China is also building ports and railways in Brazil and Peru to boost trade. Trade tensions between the U.S. and China have accelerated these plans, increasing Chinese agricultural imports from Brazil. Brazil faces challenges such as high fertilizer costs and soil degradation, which limits its ability to meet China's growing demand.
Source : Wall Street Journal
