What is the current status of Chinese companies' overseas investments in the mining sector?

Chinese enterprises have once again fallen victim to 'pig-butchering' schemes abroad—but this time, the perpetrators are not Indian entities. Recently, Tianqi Lithium issued an announcement stating that SQM (Sociedad Química y Minera de Chile), the Chilean chemical and mining company in which it invested several years ago, is slated for nationalization by the Chilean government. Meanwhile, in neighboring Peru, COSCO Shipping has suffered a similar fate: Peru’s National Port Authority revoked COSCO’s exclusive operating rights over the Chancay Port through judicial proceedings. Why are Chinese enterprises repeatedly falling prey to such 'pig-butchering' schemes overseas? Who is behind these outright seizures? Today, we’ll delve into these questions. Writing this article takes effort—feel free to like, share, and save it! Tianqi Lithium’s Massive Investment Now in Jeopardy Let’s first examine Tianqi Lithium’s experience in Chile. The story begins in 2018, when Tianqi Lithium acquired a 22% stake in SQM for USD 4.066 billion—20% above market price—becoming its second-largest shareholder. On paper, this investment seemed highly promising: First, the rapid growth of the new-energy vehicle industry has dramatically increased demand for lithium-ion batteries; thus, securing upstream mineral resources was a sound strategic move. Second, SQM itself is a powerhouse: one of the world’s leading producers of potassium and lithium, supplying 44% of global brine-based lithium output—and holding operational rights over the Atacama Salt Flat, home to the world’s highest-grade lithium and brine resources. Hence, despite Tianqi Lithium’s USD 4+ billion investment—USD 3.5 billion of which came from bank loans—the deal appeared fundamentally sound. Yet the greatest uncertainty facing such overseas investments has never been commercial—it’s political. In 2023, Chile executed a bold maneuver: not only raising mining income taxes but also launching retroactive tax audits. What does “retroactive tax audit” mean? It means SQM was found to have underpaid USD 1.1 billion in corporate income tax during fiscal years 2016 and 2017—and must now pay it all back. But Tianqi Lithium didn’t acquire its stake in SQM until 2018; how could it possibly be liable for SQM’s prior tax shortfalls? Chile didn’t care. It demanded Tianqi Lithium pay up—USD 1.7 billion in total. Beyond demanding money, Chile deployed an even more aggressive tactic: forced public-private partnership. Just recently, SQM signed an agreement with Codelco (Chile’s state-owned copper corporation) to form a joint venture. Starting in 2025, 70% of the JV’s profits will go to the Chilean government; after 2031, that share rises to 85%. As a result, Tianqi Lithium’s original 22% stake—purchased with heavy debt—is now diluted to roughly 6%. Control over the Atacama Salt Flat’s operations will effectively shift to Codelco. Tianqi Lithium’s USD 4 billion investment may take decades—if ever—to recoup. Although Tianqi Lithium issued an announcement stating it would convene a shareholders’ meeting for approval and engaged lawyers to pursue legal remedies, Chile has simply ignored these efforts. Currently, SQM’s agreement with Codelco is proceeding smoothly. Facing this ‘pig-butchering’ scheme, Tianqi Lithium’s prospects look grim. Chinese enterprises are suffering repeated ‘pig-butchering’—blatant seizures!

Vanguard Group’s Q2 2021 Holdings: $4 Trillion Total; Detailed List of All Chinese ADR Holdings – Form 13F

Hi everyone, I’m Jiangxin. Today, let’s review Vanguard Group’s portfolio holdings as of the end of Q2 2021. Vanguard Group currently holds USD 4 trillion in assets under management—up from USD 3.69 trillion previously. Its portfolio added 177 new positions, increased stakes in 2,889 stocks, reduced positions in 1,224 stocks, and fully exited 85 stocks. The top ten holdings account for 19.45% of its total portfolio value. Vanguard Group’s top five buys and sells in Q2 2021 were as follows: Vanguard Group’s top ten holdings for Q2 2021 were: Key moves among Vanguard’s Chinese ADR holdings included: New positions: Miniso Increased positions: Pinduoduo, Bilibili, XPeng Motors, RLX Technology (Vuse) Reduced positions: Full exit from Alibaba; reduced positions in JD.com, NetEase, and ZTO Express Below is Vanguard Group’s complete list of Chinese ADR holdings and their changes: Finally, a quick note: What is Form 13F? Which entities must file it? And why is disclosure required? Form 13F is an institutional investment manager’s quarterly holdings report.

Vanguard Group Increases Stake in Sociedad Quimica y Minera

May 17, 2026

Vanguard Group raised its holdings in Sociedad Quimica y Minera by 4.3% to 649,528 shares valued at $44.7 million, while the company reported Q1 earnings of $0.64 per share.

MarketBeat

2026-03-31

Boston Common Asset Management LLC Raises Stake in Sociedad Quimica y Minera S.A.

2026-04-08

Aberdeen Group plc Sells 27,152 Shares of Sociedad Quimica y Minera S.A. ($SQM)

2026-04-13

Sociedad Quimica y Minera (NYSE:SQM) Reaches New 1-Year High - Here's Why

2026-04-30

Wealth High Governance Capital Ltda Takes Position in Sociedad Quimica y Minera S.A.

2026-05-05

Pictet Asset Management Initiates New Position in Sociedad Quimica y Minera S.A.