Latin America is witnessing a notable increase in trade and investment ties with China, which has become a major buyer of commodities such as iron ore, copper, soybeans, and oil, and a key exporter of manufactured goods.
Nevertheless, the United States remains dominant in the region's economy, especially in Mexico and Central America, where it is expected to align with Washington's efforts to limit Chinese investments and imports.
Chinese investments, which have exceeded 100 billion dollars annually since 2010, are concentrated in the mining, energy, automotive, and telecommunications sectors. Chinese companies also operate ports in Peru, Brazil, and Jamaica, and are building facilities for space tracking, raising American concerns about the potential military purposes of these projects.
In contrast, resource-rich South American countries like Argentina and Brazil tend to balance their relationships between the two powers, benefiting from Chinese demand without abandoning American investment.
Analysts point out that the result will be a divided region: Central America leans towards the American sphere, while South America oscillates between China and the United States, with increasing challenges around minerals, technology, and ports.
💡 Latin America is facing a significant test in the balance of power between Beijing and Washington, and its economic trajectory will be a mirror of this competition.
