Commentary
The Chinese Communist Party (CCP) is increasing its influence in Latin America, but the United States is also making strides, making it premature to declare a clear winner.
For instance, during a meeting with Bolivia’s foreign minister, Chinese Foreign Minister Wang Yi highlighted the importance of strengthening China-Bolivia relations. Bolivia, heavily tied to China economically, has a debt of over $1.7 billion, showcasing the risks of aligning closely with Beijing.
The United States is facing increasing competition from China in Central and South America, especially as Chinese investments in energy and infrastructure challenge American dominance. The CCP has utilized America’s trade disputes, such as threats of tariffs on Brazil and Mexico, to foster individual partnerships and provide an alternative economic support system to Latin American nations.
China’s influence in the region has grown substantially since the early 2000s, driven by significant investments in energy, infrastructure, and space sectors, particularly through its Belt and Road Initiative (BRI). By 2021, trade between China and Latin America reached a record $450 billion, making China South America’s top trading partner and the second largest trading partner for Latin America overall, after the United States.
During the previous Biden administration, the United States viewed China as a strategic rival in the region. However, the Trump administration recognized the perils of allowing Beijing to establish a foothold in the Americas. President Donald Trump considered China’s activities in Latin America a direct threat to U.S. security and economic interests, particularly its increasing influence over crucial infrastructure like the Panama Canal.
Additionally, Trump took action against Chinese trade practices with tariffs on steel and aluminum, accusing China of exploiting the USMCA to circumvent U.S. tariffs via Mexico. Consequently, China’s investments in Latin America have been portrayed as part of a broader challenge to U.S. supremacy, aligning with Trump’s “America First” policies.
While China is making significant progress in Latin America, the United States has achieved some key victories, with several countries recognizing the risks of aligning too closely with China. For example, Brazil, a significant regional partner of China and a BRICS member, opted out of the BRI. Uruguay’s proposed free trade agreement with China was stalled due to opposition from Mercosur members, primarily Brazil and Argentina.
At the Mercosur summit in December, Uruguayan President Lacalle Pou emphasized the need for transparency and open dialogue within the bloc regarding their stances on China. While Brazil under President Luiz Inácio Lula da Silva revitalized ties with China, and Argentina under former President Alberto Fernández sought to pause discussions, Argentina’s current president, Javier Milei, expressed intentions to shift the country away from China and towards the United States, despite continuing trade with China.
Uruguay is focused on enhancing its economic ties with China, while Paraguay, leading Mercosur, maintains relations with Taiwan but acknowledges China as Uruguay’s top trading partner. This regional divide underscores the challenges Uruguay faces in navigating trade and diplomacy with China, especially given Mercosur’s requirement for consensus on external negotiations.
Trump effectively preserved U.S. influence in several Latin American nations despite China’s growing presence. In Panama, after China sought to strengthen ties through the BRI, the Trump administration urged Panama to reduce its partnership, particularly concerning the Panama Canal, leading Panama to refrain from renewing its participation in the BRI. Venezuela also aligned with Trump’s policies by accepting the return of illegal immigrants, including gang members.
Similarly, Colombia agreed to accept the return of illegal immigrants, showcasing the continued influence of the United States. Despite deepening ties with China, Colombia remained aligned with the United States on security matters like counter-narcotics and military cooperation. The Colombian government also expressed reservations about joining the BRI, demonstrating caution in deepening its relationship with Beijing.
In countering the CCP in Latin America, the Trump administration is positioned to secure victories as the United States maintains a strategic advantage through crucial trade and defense relationships with many regional countries.
Growing concerns over debt burdens and the one-sided nature of many Chinese agreements are leading some nations to reassess their alliances. There are also doubts about losing sovereignty and becoming overly dependent on China.
As these issues come to the forefront, the United States has a strong position to take advantage of China’s economic struggles, solidifying its longstanding presence and interests in the region.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
