Nicaraguan assembly OKs $40 bln Chinese canal to rival Panama's

[Socialistlemur]

7. Corporate background of Chinese involved in canal construction

The company receiving the award is incorporated in Hong Kong. The president is the CEO of Xinwei Telecom. Xinwei is a Beijing based Chinese corporation quoted in the local stock market, but it seems to have roots in the state research incubators. It's first forays outside China were in Cambodia, Nicaagua, and possibly Myanmar. Their technical strength is wireless telephony.

So what are these guys doing in a deal to build a canal? I think they parlayed their contacts in Nicaragua to make a deal. They'll now try to flip the contract to a real Chinese construction company and will have to get Chinese bank funding. But I have a hunch this is mostly vapor ware, and they will use the concession for a more limited project. A full canal doesn't really make sense long term, and the banks won't lend unless they get good cash flow projections.