The head of the Chinese regime, Xi Jinpingarrives this week at Latin Americawhere China has surpassed USA as the main trading partner of almost all the large economies in the region, with the exception of Mexico y Colombia. During his visit, the Chinese leader will inaugurate a mega port project in Peru to expedite trade with Asia.
In addition, he will attend the summit of the Asia-Pacific Economic Cooperation Forum (APEC) in Lima and to the meeting of G-20 in Rio de Janeiroevents that some analysts interpret as signs of the growing economic influence of Beijing on Washington in the southern hemisphere.
Chinese trade in the region includes the purchase of lithium Argentinian, Chilean and Bolivian, oil Venezuelan and iron ore y military of Brazilwhile the value of its infrastructure projects in Latin America and the Caribbeanestimated at $286.1 billion by AidData, is already approaching its total investments in Africa. These projects range from metro lines in Bogota y Mexico City even dams in Ecuadorand demonstrate more diversified investment and less resistance than in other developing regions, according to an article published in The Wall Street Journal.
Beijing has captured the attention of Latin American leaders with a policy that breaks with the global order led by USA from the Second World War and is committed to less conditioned relationships, in the words of Alvaro Mendez of the London School of Economicsan important symbol for the countries of the On Global. Besides, China has established itself as an alternative in strategic sectors, such as infrastructure and technology, with exports of consumer goods and industrial products, such as electric vehicles. BYD and telecommunications equipment Huawei.
Although trade and investment China have grown rapidly, some countries in the region have imposed tariffs on Chinese products due to competition that affects local industries, such as steel in Chile and fishing in other areas. The construction of a hydroelectric plant in Ecuador and mining activity in Peru have also generated criticism for their environmental and social impact, partly damaging the image of China.
USAin contrast, faces challenges in its attempt to maintain influence in Latin America. John Feeleyformer ambassador of USA in Panama, described how Washington showed indifference towards opportunities in the region, such as the construction of a bridge in the Panama Canal in 2018, which was finally awarded to a Chinese consortium.
In response to the advance of Chinathe General Laura Richardsonhead of United States Southern Commandwarned about the growing influence of Beijing in the region. The International Development Finance Corporation The US has allocated $30 million for a cobalt and nickel mining project in Brazilbut middle-income nations in Latin America They do not qualify for most of their support funds.
US foreign policy towards the region continues to focus on issues such as illegal immigration and narcotics, without fully exploiting political stability and the growth of the middle class that could benefit your interests. The countries of the region, such as Ecuador y Uruguayhave sought commercial agreements with Beijing due to the lack of interest of USAalthough the Ecuadorian ambassador Cristian Espinosa Cañizares recognized that Ecuador continues to prioritize agreements with USAbut is looking for alternative strategies to access its market.
At the geopolitical level, one of the key objectives of Beijing is to isolate Taiwan. Among the eleven countries that still maintain diplomatic relations with Taipeiseven are found in Latin America. In recent years, nations such as Honduras y Panama They have exchanged their diplomatic recognition towards China in exchange for promises of investment.
The influence of China in Latin America It also responds to long-term strategic interests. In addition to the acquisitions of natural resources, Beijing has promoted trade agreements in yuan and control of port operations in countries such as Peruwith the aim of ensuring supply chains that resist potential Western sanctions in the event of military conflicts. A report of the Rhodium Group and the Atlantic Council suggests that, in a scenario of tensions between China y West, Beijing could offer incentives to regional nations, such as Brazilto avoid an economic disengagement similar to that faced by Russia after his invasion of Ukraine.
In ArgentinaFor example, a “space observation” located in Neuquen –Argentine Patagonia– It is for restricted use by the Chinese military with no possibility for local officials to access it. Washington He believes that this base is used by the regime to spy on communications throughout the hemisphere.
However, China faces certain setbacks in its expansion in the region. Despite the progress of the program Belt and Road Initiativewhich has added 22 of the 26 eligible Latin American and Caribbean countries, Brazil has formally avoided joining, a gesture that reflects dissatisfaction with limited access to the Chinese market for Brazilian products. This decision represents a blow to the flagship project of Beijing and highlights a possible discontent with the lack of economic reciprocity, evidencing latent tensions between the interests of China and the expectations of Latin American governments.
