Uruguay | Chinese outbound direct investment pivots to the Southern Hemisphere

The growing geopolitical uncertainties between the United States and China were, to some extent, a determining factor in the increased regulations by advanced countries to discriminate against the flow of funds from China. In this context, China began to turn towards the southern hemisphere when directing its investments.

Key points

• Key points:
• Chinese investments in Asia (main destination) slowed down during 2021, due to a context of weak progress on vaccination and closed borders in many countries.
• Towards the rest of the geographies, especially Latin America, they continued to grow, finding ample opportunities for expansion.
• Uruguay has the opportunity to take advantage of these Chinese investment flows since it has all the appropriate conditions, in particular a high institutional quality, which is very worthly condition for being an eligible destination for foreign investment.

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