China is consolidating its economic presence in Latin America amid tensions with the US.

China has established itself as the main trading partner of several Latin American countries, such as: Brazil either Argentinaand has increased its presence in the region with important projects such as the port of Chancay (Peru), an expansion that has brought it renewed tensions with the United States.

This port, inaugurated last year to directly connect South America and China, joins other initiatives such as: Vehicle factories in Mexico and Brazil, Copper or iron mines in Chile, railway projects in Argentina or lithium mining in the “triangle” that these two countries and Bolivia form.

According to the Chinese Ministry of Commerce, the Asian country’s direct investment in Latin America reached $14.71 billion in 2024. Data from the National Autonomous University of Mexico shows that Between 2010 and 2019, this capital inflow was almost seven times higher than in the previous decader, although the pace has slowed since the pandemic.

Back in 2011, Jin Liqun, then president of China Investment Corp (CIC, a sovereign wealth fund with assets of around 1.57 trillion yuan and the task of investing in foreign markets), expressed his “optimism” about growth in Latin America and announced that it would “increase” its investments in the region, pointing in particular to opportunities in countries such as Brazil, Chile and Colombia.

But what was initially a search for new markets and fruitful investments is now over is viewed by Washington as a “strategic threat.”said William Jackson, chief emerging markets economist at British consultancy Capital Economics.

In a report published this year, the analyst believes that the region could become the scene of a new edition of the “Monroe Doctrine”, this time with China as the protagonist, through which the US tried to reduce European influence in the Americas in the 19th century.

The same month, Beijing released a new official roadmap for Latin America and the Caribbean, the third of its kind since 2008 and a replacement for the 2016 plan, ensuring that China and that region share “broad development prospects.”

Specifically, the Chinese authorities see opportunities for cooperation with Latin American countries in areas such as Artificial intelligence, telecommunications, renewable energy, hydrogen, mining or mineral processing.

In addition, the text also mentioned the desire to promote projects in the areas of transport, logistics, housing, electrical energy and urban development under the umbrella of China’s New Silk Roads infrastructure project, to which around twenty countries in the region have joined.

Also mentioned Tourism initiatives – for months China has been exempting visitors from Argentina, Peru or Chile from visa requirements – and an increase in both the use of local currencies in cross-border trade transactions and dialogue between regulators and central banks.

On this last point, Argentina is also an example of the financial role of China, a major creditor thanks to a currency swap agreement worth the equivalent of $18.57 billion, of which a $5 billion tranche was extended this year.

In addition, Latin America is one of the most important alternative markets, along with Southeast Asia and Africa, where China is supporting its foreign trade in the face of the tariff war with the USA.

While exports to the US fell 18% through November, exports to Latin American countries rose almost 8%, a figure equivalent to 70% of what the world electricity leader buys from the Asian giant.

Over the past two decades, Jackson points out, Chinese exports to Latin America have increased almost elevenfold, mainly for industrial goods – and more recently for electric vehicles in markets like Brazil – while in the opposite direction they are now 14 times higher, with four specific products playing a prominent role: Iron, copper, soybeans and oil.

The countries with the greatest export exposure to China are Chile, Brazil and Peru, all accounting for more than 25% of the Asian giant’s total overseas sales, the report said.

However, Capital Economics calls for “not to overstate China’s role” in trade with Latin America: “The region exports three times more to the US than to China. A large part of this is thanks to Mexico, but even if we take Mexico out of the equation, sales to the US are not far behind those to China.”

Jackson emphasizes this idea: “China does not exert the hegemony in the region that it is often attributed to. In fact, the United States is much more important to Mexico and Central America in particular, and these countries would likely bow to American pressure to limit Chinese investment and reject imports from China.”