As the US tightens trade restrictions against Latin America, China is quietly gaining ground in the region with its stable partnerships and investments.
While the United States tightens trade restrictions against some Latin American countries, China is quietly gaining ground in the region. Beijing positions itself as a stable partner, and many governments are receptive to its offers.
China's growing economic and military presence has led to increased global influence.
The Belt and Road Initiative (BRI) is a key component, with over $1 trillion invested in infrastructure projects across Asia, Europe, and Africa.
China also has significant diplomatic ties, with the Shanghai Cooperation Organization (SCO) and the Asian Infrastructure Investment Bank (AIIB).
According to a Pew Research Center survey, 62% of Americans view China's growing influence as a 'threat.'
Latin America’s largest economy, Brazil, is planning a major rail link to Peru‘s ‘Chancay megaport on the Pacific’ , a project backed by Chinese financing with the aim of reconfiguring trade routes and reducing dependency on traditional Atlantic shipping lanes. Brazilian business magazine ‘Valor recently wrote that Chinese interest in new investments in Brazil is on the rise.’.
Colombia, too, is reportedly weighing participation in China‘s ‘Belt and Road Initiative’ , while Venezuela is actively pursuing deeper ties with Chinese oil firms. These developments suggest that US trade policies under President Donald Trump — especially the imposition of punitive tariffs on almost the whole world — are nudging Latin America closer to Beijing rather than pushing it away.
The Belt and Road Initiative (BRI) is a global development strategy proposed by 'China' in 2013.
It aims to connect over 60 countries through infrastructure projects, trade agreements, and investments.
The initiative has two main components: the Silk Road Economic Belt (SREB) and the Maritime Silk Road (MSR).
SREB focuses on land-based connectivity, while MSR focuses on maritime routes.
BRI's goals include promoting economic growth, reducing poverty, and enhancing regional cooperation.
China‘s consistent strategy is standing in sharp contrast to Washington‘s erratic approach. ‘What we’re seeing instead is uncertainty, constant changes, and a lack of clear rules,’ said Vladimir Rouwinski, an associate professor at Icesi University in Cali, Colombia.
China, on the other hand, appears committed to its long-term strategy, which makes it difficult for Latin American governments to adapt to the constantly shifting US policy. ‘What we’re seeing instead is uncertainty, constant changes, and a lack of clear rules,’ he told DW.
The relationship between the United States and China has undergone significant changes over the years.
Initially, China was a major trading partner of the US, with diplomatic ties established in 1979.
In the 1990s, China's economic growth led to increased trade and investment between the two nations.
However, concerns over 'human rights' and 'intellectual property' have strained relations since then.
The US-China trade war, initiated in 2018, further escalated tensions.
Currently, both countries are working towards a more balanced relationship, with efforts to address trade imbalances and strengthen cooperation on global issues.
Enrique Dussel-Peters, coordinator of the China-Mexico Studies Center at the UNAM university in Mexico City, sees a growing trust gap between the two superpowers. He believes that China has been ‘very active’ for decades in its cooperation strategy with the Global South.
Just in March this year, Chinese Foreign Minister Wang Yi underscored the importance of the China-Latin America relationship during a visit, describing it as one based on mutual respect, equality, and mutual benefit. The contrast with the executive orders issued by the US president since taking office in January couldn’t be starker.
Trade, investment, and infrastructure projects with China now have a significant impact on Latin America and the Caribbean. ‘The US government sees Latin America as a problem,’ said Mauricio Santoro, a Brazilian political scientist.
‘The Chinese government sees it as a region full of economic opportunities.’ He believes that Washington‘s agenda for the region is highly negative, focused on problems, and offers little in the way of mutually beneficial agreements or long-term prospects.
Still, Latin American countries are not ready to pick sides. They don’t want — and can’t afford — to choose between the US and China. Both remain critical trading partners. However, the trend is clear: US influence is fading, and China‘s is growing.
China‘s trade with the region has surged dramatically in recent decades. With Brazil, for example, bilateral trade has risen from $1 billion (€903 million) in 2000 to over $130 billion today. Traditional US tools of influence — such as economic pressure — are becoming less effective, particularly with larger nations like Brazil, Mexico, and Argentina.
As a result, Brazilian business journalist and author ‘Gilvan Bueno sees Latin America as an increasingly important part of China’s global trade strategy.’ ‘Latin America will move more into the focus of China as it develops new strategies and diversifies geopolitically to reduce its dependence on the American economy,’ he told DW.
This trend offers Beijing a chance to absorb excess production and offset export losses, as both regions offer robust demand and underdeveloped infrastructure.
