As China became an economic superpower, its banks and companies planted five-star red flags all over the world. But nowhere has booming Chinese business caused Washington as much concern as in Latin America. “They are on the 20-yard line to our homeland,” said General Laura Richardson, commander of US Southern Command, last year.
Latin America possesses plenty of what the world needs most: lithium and copper for electrification, fresh water and fertile land to grow food, and prime locations for generating solar and wind power.
Keen to dominate these sectors, Beijing has invested accordingly. Trade between China and Latin America exploded from $12.5bn in 2000 to more than $480bn in 2022. Chinese firms are building ports, roads, railways and hydro dams across the region. Beijing’s state-backed banks loaned more than $136bn to Latin nations from 2005-22.