China's growing presence in Latin America, highlighted by President Xi Jinping's recent visit, is raising concerns as it challenges the region's traditional alignment with the United States. Over the past decade, China has expanded its influence through trade, infrastructure investments, and diplomatic ties, particularly under initiatives like the Belt and Road Initiative (BRI).
Xi's trip included high-profile engagements, such as the Asia-Pacific Economic Cooperation (APEC) forum in Peru and the G20 summit in Brazil. At the APEC meeting, symbolic optics underscored China's prominence, while Xi also inaugurated a $3.5 billion megaport in Chancay, Peru. This project, part of the BRI, aims to enhance connectivity between South America and China, with potential military implications, raising alarms among U.S. officials.
Trade between China and Latin America has surged over two decades, making China the region's second-largest trading partner. Additionally, 22 of 26 eligible countries have joined the BRI, reinforcing China's Global South strategy. Beyond trade, China's footprint extends into strategic sectors such as space infrastructure, electric vehicles, critical minerals, and port management, some of which have dual civilian-military uses. China has also increased military cooperation and diplomatic influence, often supporting authoritarian regimes in the region.
Some U.S. allies in Latin America, like Mexico and Colombia, are strengthening ties with China, while countries like Argentina are reevaluating their stance to balance critical trade relationships. Despite these shifts, U.S. policymakers, including Secretary of State nominee Marco Rubio and National Security Adviser Michael Waltz, recognize the need for a renewed strategy to counter China's influence.
A U.S. response should focus on three principles: insulating Latin American democracies from corruption and exploitation, curtailing China's dominance in critical sectors like semiconductors and minerals, and competing by offering attractive alternatives in trade and development. By leveraging existing trade agreements and global partnerships, the U.S. can work to maintain stability and democratic governance in the region, countering China's deepening foothold.
Disclaimer: This image is taken from Center for Strategic and International Studies.