[Satellite TODAY Insider 05-31-11] China’s influence in the Latin American satellite market is building after it was announced that the Venezuelan government has reached an agreement with Chinese government to build a second geostationary satellite. Venezuelan news agency, AVN reported the new collaboration between the two nations May 26. Venezuela’s first satellite, Venesat-1 was launched into orbit back in 2008.

            The deal is also further indication of China’s growing influence in the region. Maria Velez de Berliner, President, Latin Intelligence, says China’s progress here is definitely something to watch. “China’s regional investments in critical infrastructure, telecommunications, natural resources, agriculture, critical infrastructure (ports, railroads, airports), logistics, finance, banking and the environment show China is committed to staying in the region over the long haul. And China’s primary concerns are order and dependability of access to resources, all supported by satellites.”

China has also made its presence felt in other markets in region such as Bolivia, where it signed a deal with the local space agency to build a satellite late last year. “Bolivia’s negotiations with China over China Great Wall will probably result in the cheapest satellite delivered and launched in Latin America, costing around $300 million,” Velez de Berliner says.

            Velez de Berliner expects China’s influence across the satellite sector to increase. “China is now Latin America’s major strategic partner. The Chinese have the money, the technology and the long-term planning and staying power, and their focus is on investing in Latin America’s critical infrastructure,“ she says.