3 54 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Third , itishardtocontrolsocialrisks.Socialriskshererefertoeventsof thekindthatcaninterruptnormaloilproductionandareoutofcompanies control.Inrecentyears , ChinasoiloperationsinLatinAmericahavesometimes beendisturbedbynativeactivistgroupsseekinghigherwelfarebenefits.InJuly 2007 , ChinasoilprogrammesintheEcuadorianpartoftheAmazonbasinwere partlydestroyedbynativepeople , leadingtoseriouseconomiclosses.Other foreign oilcompanies have had similar experiences.Furthermore , terrorist attacksstillsometimestakeplaceinthisregion. Fourth , environmentalrequirementshaverisenconsiderably.Between1990 and2005 , 20percentoftheforestryinEcuadorwasdestroyedbyoilexploration andproduction ( OPEC2007:48 ) .Inordertoimproveenvironmentalprotection , somegovernmentsrequirethatforeigncompaniesagreetostrictenvironmental protectionclauseswhentheynegotiateoilcontracts.Environmentalprotectionis sometimesalsoforcedbylocalprotestsintheaffectedregions.Forexample , Peruviannativesarmedwithbows , arrowsandriflesblockedoilproductionat ArgentinecrudeproducerPluspetrolwhichwasforcedtoshutdownits50 , 000 barrelsperdayoiloperationinPerusnorthernjungle.Thecompanyfinally promisedtoworkwiththegovernmentandlocalcommunitiestocleanuprivers anddevelopprojectssuchasfishfarms.InSinoLatinAmericanoilcooperation programmes , bothsidesattachgreatimportancetoenvironmentalprotection. Therefore , forChineseoilcompanies , itisevidentthatmorecapitalisneededto meetenvironmentalprotectionrequirements. Fifth , theroleoftheUScannotbeneglected.TheUSexertsadominant influenceinthe Westernhemispherebotheconomicallyandgeopolitically , and LatinAmericadependsheavilyontheUSenergymarketintermsofoilexports. AccordingtoBP WorldEnergyStatistics2008 , theUSimported204million tonnesin2007 , accountingfor74.43percentofLatin Americancrudeoil exports.WiththerapiddevelopmentofSinoLatinAmericanoilcooperation , US scholarsarguethatChinaspenetrationofLatinAmericacouldposeathreatto USenergysecurity.Suchviewsarebasedonazerosumlogic:inotherwords , themoreoilChinaimportsfromLatinAmerica , thelessoilwillbeavailableto theUS. InadditionitmustbetakenintoconsiderationthatEuropeanandUSoil companiesdominatetheLatinAmericanoilmarket.Onlyinrecentyearshave Russia , IndiaandIranenteredtheLatinAmericanoilsector.Chinaisonlyone strategic partner enabling Latin American countries to diversify their cooperation.ChinawillfacefiercecompetitionintheLatinAmericanoilmarket.
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China, the EU and Latin America : current issues and future cooperation
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