China Development Bank Loans Argentina $10 Billion for New Metro and Rail Construction

China seems to have a direct interest in Argentinian farmland, a good reason for it to help improve transportation to and from this farmland in a very cost-efficient way (through better rail lines).

“Thanks to talks between Presidents Cristina Fernández de Kirchner and Hu Jintao, Argentina will receive $4.35 billion to renovate three freight railroad lines, including $1.85 billion to improve conditions on the Belgrano Line, which links the country to Bolivia and is an important link for the nation’s agricultural producers,” Yonah Freemark of the TransportPolitic writes.

But $4 billion for improvement of the Buenos Aires Subway and creation of a 4-corridor Metro in Cordoba don’t seem to offer any direct economic benefit to China. Yonah conjectures that Argentina must have agreed to give China some preferential trade treatment for this.

The Argentinian government has also committed to give a 15% match to the loans they receive.

China to Fund High-Speed Rail in the United States?

It is clear that China is willing to invest good money in high-speed rail and transit projects in its own country and abroad. It must see such transportation as an important solution to 21st century challenges.

While the US has committed several billion dollars for high-speed rail across the nation, it is still far behind China and Europe in this field. And many wonder if private and public entities in the US will even be able to fund the projects President Obama put $8 billion towards earlier this year. One solution, if that is the case, might be to borrow money from China.

“If U.S. companies aren’t able to provide adequate private sector support for construction programs, and if neither the federal government nor states themselves are able to develop infrastructure banks to advance such funding, foreign aid could be a realistic possibility,” Yonah writes.

“This could be seen as a significant let-down for Americans used to thinking that we should be able to fund our infrastructure using our own funds. But the opportunity for expanded global trade could be an excellent opportunity for improvements in the U.S.; there’s no reason to be worried about direct investment from abroad if it makes possible the construction of resources that we couldn’t otherwise build.”

I think this is excellent commentary. It would be great if we could fund high-speed rail projects in the US with US money, but if US companies and government can’t get the job done, getting money for these critical infrastructure projects elsewhere is better than not. High-speed rail is a good public investment and I think it is very important for future economic vitality in the US.

Sculpture Exhibition Gets Laser Treatment

LASER alarm systems will be put in place to protect dozens of artworks by Chinese and overseas artists during a sculpture exhibition from September 1 in Jing'an District.

Some of the sculptures are reportedly worth more than 10 million yuan (US$1.47 million).

The exhibition, which will last two months, has attracted world famous artists like Arman Pierre Fernandez, who created the "Horse" sculpture in front of Shanghai Exhibition Center, Philippe Hiquily, and Arne Quinze.

Sixty-five pieces will be on display at 10 locations including Jing'an Sculpture Park, Moller Villa, Jing'an Villa and Plaza 66.

Insurance for each sculpture has been purchased.

Along with the laser alarm systems, security guards will patrol sculpture locations from time to time, according to Li Zhen, a Jing'an government official.