Overview

In recent years, Chinese firms have invested heavily in Latin America. Indeed, China has become the biggest trade partner of commodity-rich and capital-hungry countries like Brazil. Although Chinese investments in Brazil’s hydrocarbons sector may be the most visible, Chinese firms have made tremendous investments in Brazil’s steel, mining, and automobile industries, agriculture, and electricity grid.

In light of this surge in investment both in Brazil and Latin America generally, Chinese investors should be aware that their contracts are susceptible to being set aside because of ‘hardship’ provisions contained in civil codes.

Vinson & Elkins reports on the challenges in terminating a contract because of hardship.

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