SSRScientific and Social Research2661-43322981-9946Bio-Byword Scientific Publishing Pty. Ltd.10.26689/ssr.v6i11.8829ArticleThe Chinese Model: Analysis of the Investment of Chinese Mining Enterprises in Latin Americahttps://artdesignp.com/journal/SSR/6/11/10.26689/ssr.v6i11.8829LiZhengkang20246112024-11-29Recent years have witnessed China’s increasing presence in Latin American countries, specifically focusing on FDI in the natural resource sector. However, researchers have found that Chinese enterprises invested overseas will likely be involved in conflicts with local stakeholders and have difficulty seeking a social license to operate (SLO). Therefore, it is worth exploring the mechanism of Chinese investments in the Latin American market and the management of corporate social responsibility (CSR) of Chinese enterprises in foreign investment. The main research objectives of the thesis are summarised below. (1) Exploring the mechanism of Chinese enterprises entering Latin America, especially the relationship between Chinese state-owned enterprises (SOEs) and the state government. (2) Analyzing the interactions between Chinese mining SOEs and non-governmental stakeholders in Latin America and the causes of mining conflicts. (3) Describing Chinese enterprises’ management of CSR overseas, especially in seeking the social license to operate (SLO).

Guerrero LM, 2018, Chinese Mining Investments in Peru: Conflicts, Institutions and Local Development. Journal of Latin America Studies, 40(2): 59–75.

Li Y, Wang AJ, Chen QS, et al., 2012, Discussion on Mining Investment in South America. China Mining Magazine, 21(9): 12–16.

Creutzfeldt B, 2017, Latin American Views of Chinese and US Policy, in China, the United States, and the Future of Latin America. New York University Press, New York.

Eichenauer VZ, Fuchs A, Bruckner L, 2020, The Effects of Trade, Aid, and Investment on China’s Image in Latin America. Journal of Comparative Economics, 49(2): 483–498.

Myers M, 2019, China in Latin America: Major Impacts and Avenues for Constructive Engagement. China Currents, 19(1): 1–15.

Sanchez-Vazquez L, Espinosa MG, Eguiguren MB, 2016, Perception of Socio-Environmental Conflicts in Mining Areas: The Case of the Mirador Project in Ecuador. https://www.scielo.br/j/asoc/a/ZSzMHH9rCXtT3cK3vqwyvyr/?format=html

Perez LM, 2017, Chinese Investments in Latin America: Opportunities for Growth and Diversification. Production Development, published online.

Shapiro DM, Vecino C, Li J, 2017, Exploring China’s State-led FDI Model: Evidence from the Extractive Sectors in Latin America. Asia Pacific Journal of Management, 2017(35): 11–37.

Irwin A, Gallagher KP, 2012, Chinese Mining in Latin America: A Comparative Perspective. The Journal of Environment & Development, 22(2): 207–234.

Gonzalez-Vicente R, 2012, Mapping Chinese Mining Investment in Latin America: Politics or Market? The China Quarterly, 2012(209): 35–58.

Saenz C, 2018, Building Legitimacy and Trust between a Mining Company and a Community to Earn Social License to Operate: A Peruvian Case Study. Corporate Social Responsibility and Environmental Management. 26(2): 296–306.

Freeman RE, 2010, Strategic Management: A Stakeholder Approach. Cambridge University Press, New York.

Miloud T, 2014, Placing Stakeholder Theory within the Debate on Corporate Social Responsibility, in Corporate Governance and Corporate Social Responsibility. World Scientific Publishing. Singapore, 531–550.

Cragg W, Greenbaum A, 2002, Reasoning about Responsibilities: Mining Company Managers on what Stakeholders are Owed. Journal of Business Ethics, 2002(39): 319–335.

Walzer N, 2003, The American Midwest: Managing Change in Rural Transition. ME Sharpe, Inc., New York.

Prno J, Scott SD, 2012, Exploring the Origins of “Social License to Operate” in the Mining Sector: Perspectives from Governance and Sustainability Theories. Resources Policy, 37(3): 346–357

Thomson I, Boutilier R, 2011, The Social License to Operate. SME Mining Engineering Handbook, 1779–1796.

The World Bank, 2005, Wealth and Sustainability: The Environmental and Social Dimensions of the Mining Sector in Peru. World Bank Group, Washington.

Goyal A, 2006, Corporate Social Responsibility as a Signalling Device for Foreign Direct Investment. International Journal of the Economics of Business 13(1): 145–163

Li YL, 2019, Social Responsibility of Multinational Mining Enterprises from the Perspective of Stakeholder Theory. China Mining Magazine, 28(7): 32–36.

Gifford B, Kestler A, Anand S, 2010, Building Local Legitimacy into Corporate Social Responsibility: Gold Mining Firms in Developing Nations. Journal of World Business, 45(3): 304–311.

Sun HB, 2010, China’s Assistance to Latin America: Target Selection and Policy Transformation. Diplomatic Commentary, 27(5): 64–75

Gallagher KP, 2016, The China Triangle: Latin America’s China Boom and the Fate of the Washington Consensus. Oxford University Press, Oxford.

Gallagher K, Irwin A, 2017, China’s Economic Statecraft in Latin America: Evidence from China's Policy Banks. Pacific Affairs, 88(1), 99–121

Cui SJ, Jiao YP, 2020, China-Latin America Development Finance Cooperation Study. Journal of Renmin University of China, 34(3): 151–162.

Yu Y, 2015, The Mode of Chinese External Foreign Infrastructure Investment and Regulation on Political Risks: From the Perspective of One Belt and One Road Geopolitics. On Economic Problems, 2015(12): 8–14.

Inter-American Dialogue, 2024, China-Latin America Finance Databases. https://www.thedialogue.org/map_list/

Chimienti A, Creutzfeldt B, 2014, Strategies and Counter-strategies: China in the Andean Region of South America, working paper, LSE Global South Unit.

Chen T, Perez LM, 2014, Chinese Foreign Direct Investment in Latin America and the Caribbean. Production Development, published online.

Cui SJ, Zhang Z, 2017, China’s Infrastructure Construction in Latin America from the Perspective of Economic Diplomacy. Journal of Latin America Studies, 39(3): 1–18.

Chen TT, Xu R, Jin Y, et al., 2017, Investment Environment of Latin America Infrastructure and the Capacity of Chinese Construction Companies. Journal of Latin America Studies, 39(3): 19–37.

Gallagher KP, Myers M, 2014, China-Latin America Finance Database. Inter-American Dialogue, Washington.

Teijlingen KV, Hogenboom B, 2016, Debating Alternative Development at the Mining Frontier: Buen Vivir and the Conflict around El Mirador Mine in Ecuador. Journal of Developing Societies, 32(4): 382–420.

Xia FQ, 2018, Writing a New Chapter of China—Ecuador Mining Cooperation: Record of Mirador Copper Mine Construction. China Nonferrous Metals, 2018(5): 27–33.

Andreucci D, Kallis G, 2017, Governmentality, Development and the Violence of Natural Resource Extraction in Peru. Ecological Economics, 2017(134): 95–103.

Lust J, 2014, Social Struggle and the Political Economy of Natural Resource Extraction in Peru. Critical Sociology, 42(2): 195–210.

Sanborn C, Chonn CV, 2017, Chinese-Peruvian Relations in the Mining Sector: Learning Step by Step, in The Political Economy of China-Latin America Relations in the New Millennium. Routledge, New York, 115–140.

Herrera-Vinelli L, 2016, Latin America in Light of China’s Global Economic Power: Brazil and Ecuador and their Foreign Policies. Temas de Nuestra America, 33(61): 89–106.

Guo J, 2015, The History and Changes of the Shougang Hierro Peru Project. International Politics Quarterly, 36(1): 51–73.

Kotschwar B, Moran T, Muir J, 2011, Do Chinese Mining Companies Exploit More? https://www.americasquarterly.org/fulltextarticle/do-chinese-mining-companies-exploit-more/

Huang H, 2013, Draft Case Study: Chinese Mining Company Shougang Hierro Peru, China-South Dialogue. https:/chinagoingoutwordpress.com/2013/05/24/draft-case-study-chinese-mining-company-shougang-hierro-peru/

Irwin A, Gallagher KP, 2012, Chinese Investment in Peru: A Comparative Analysis. Working Group on Development and Environment in the Americas.

China Mining, 2015, Shougang Deals with Trade Unions in Peru. https://baijiahao.baidu.com/s?id=1696581394150040469&wfr=spider&for=pc

EJA, 2017, Mirador, Cordillera del Condor, Ecuador. https://ejatlas.org/conflict/mirador-cordillera-del-condor-ecuador

Huang H, 2012, In Ecuador, Home Truths for China. China Dialogue. https://chinadialogue.net/en/business/4966-in-ecuador-home-truths-for-china/

Sacher W, Acosta A, 2012, Large-scale Mining in Ecuador: Analysis and Statistical Data on Industrial Mining in Ecuador. Abya-Yala, Quito.

The Rights of Nature, 2013, The Case for Rights of Nature in Face of the Mirador Open Pit Copper Mining Project. http://therightsofnature.org/the-case-for-rights-of-nature-in-face-of-the-mirador-open-pit-coppermining-project/

Bermudez Lievano A, 2019, Indigenous Communities Take Legal Action over Ecuadon’s Largest Mine. Dialogo Chino. https://dialogochino.net/en/extractive-industries/28120-indigenous-communities-take-legal-action-over-ecuadors-largest-mine/

Avci D, Fernandez-Salvador C, 2016, Territorial Dynamics and Local Resistance: Two Mining Conflicts in Ecuador Compared. The Extractive Industries and Society, 3(4): 912–921.

Gonzalez-Vicente R, 2017, South-South relations under World Market Capitalism: The State and the Elusive Promise of National Development in the China-Ecuador Resource-development Nexus. Review of International Political Economy, 24(5): 881–903.

Quiliconi C, Rodriguez VP, 2021, Chinese Mining and Indigenous Resistance in Ecuador. Carnegie Endowment for International Peace.

Chen Y, 2020, Social Responsibility of Chinese Enterprises in Latin America: Current Situation, Constraints and Promotion Paths. Journal of Latin America Studies, 2020(6): 1–15.

Soutar R, 2019, China and the Environment: A Struggle for Change in Latin America. Americas Quarterly. https://www.americasquarterly.org/article/china-and-the-environment-a-struggle-for-change-in-latin-america/

Ministry of Commerce of the People’s Republic of China, 2013, Interpretation Draft of Environmental Protection Guide for Foreign Investment Cooperation. http://www.mofcom.gov.cn/article/zhengcejd/bq/201302/20130200039938.shtml

Li H, Hou ZM, Zhang R, 2013, Research on the Status Quo and Development Problem of China’s Foreign Direct Investment in Latin America. Journal of Financial and Economic Theory, 2013(6): 48–53.

Gallagher KP, Ray R, Richardson J, 2013, 2013 China-Latin America Economic Bulletin. Boston University.