Concretely, it may also be part of a gambit to diplomatically isolate Taiwan: about half the countries globally that still recognize Taiwan as an independent nation are located in Latin America and the Caribbean. In this sense, China’s growing economic ties with Latin America represent just one of the many steps it is taking to pursue its global ambitions. Hirschman postulated in 1945, increased trade and trade dependence between states tend to produce geopolitical bonds and even foreign policy convergence. In Latin America, 11 countries – Argentina, Chile, Uruguay, Bolivia, Peru, Ecuador, Venezuela, Panama, Costa Rica, El Salvador and Cuba – have signed onto the BRI.Ĭhina’s growing economic ties with Latin America represent just one of the many steps it is taking to pursue its global ambitions.Īs the BRI suggests, Chinese economic engagement is not merely about gaining access to natural resources and new markets, but geoeconomics. These companies have invested in regional infrastructure projects, including bridges, port facilities, hydroelectric dams and highways. China has also prioritized foreign direct investment through its global Belt and Road Initiative (BRI), sending billions to Chinese and Latin American companies through the China Development Bank and the Export-Import Bank of China. With its deep pockets, China has extended more than $140 billion in sovereign loans since 2005 to Argentina, Brazil, Ecuador, Venezuela and others, often in exchange for oil (although as a consequence of the Covid-19 pandemic it offered no new loans in 2020 or 2021). Mexico accounts for 71 percent of America’s Latin American trade.Įconomic linkages between the two regions are not restricted to trade.

trade figures were more than double those of China in 2021 – $895 million compared to $428 million, according to the International Monetary Fund. When Mexico is factored in, however, the U.S. As of 2022, China is the region’s second-largest trading partner and the biggest trading partner in nine countries (Cuba, Paraguay, Argentina, Chile, Brazil, Uruguay, Peru, Bolivia and Venezuela). These imports, meanwhile, were tied to an increase in Chinese exports of value-added manufactured goods. Chinese trade with Latin America grew from just $12 billion in 2000 to more than $430 billion in 2021, driven by demand for a range of commodities, from soybeans to copper, iron ore, petroleum and other raw materials. Chinese economic interests in Latin AmericaĬhina’s economic ascension in Latin America was driven by its interest in securing resources during the commodities boom of the 2000s and early 2010s, investment of its growing wealth and global geopolitical ambitions. response suggest that Latin America’s medium-term economic future may well be marked by dual U.S.-Chinese dominance, a scenario that may benefit the region. Increasingly, Latin American governments of all ideological stripes view China as a viable economic alternative. Additionally, Beijing has become a major source of foreign direct investment and lending. as the region’s top trading partner in many Latin American nations. However, over the past two decades, China has displaced the U.S.

China is unlikely to surpass America because of proximity and historical tiesįor more than a century, the United States has been the undisputed economic hegemon in Latin America.

Some Latin American nations are, however, dissatisfied with China’s terms.

The position of the United States slipped gradually due to negligence.

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