INFILTRATING THE U.S.’ BACKYARD
As China makes a definite push for global primacy, the Latin American and Caribbean regions are emerging as a keen site for contestation. SYNERGIA FOUNDATION R E S E A RCH
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hina’s rapidly growing investments and strategic coverage of the LATAM markets marks a shift in global trade and power. Not surprisingly, these moves in what the Americans consider as their backyard, are raising red flags in the U.S. China’s engagement with Latin America has always been spearheaded by its economic heft and soft power since it first started courting LATAM in early 2000. Latin America’s natural riches in fuels, energy, foodstuffs, and basic products, and the LATAM market appeared as a lucrative destination for Chinese-made industrial products and, consequently, Chinese investments. Beijing’s LATAM strategy has been worked around specific axes; economic and commercial dependency, which carve out market space for Chinese companies; influencing local policies and bureaucratic administration, and turning public attitudes to combat widespread anti-China sentiments in the region. The strategy integrates both domestic and foreign policy through two complementary prongs— the so-called Going Global strategy and the Belt and Road Initiative (BRI).
GEOPOLITICS OF TRADE
China’s trade with Latin America and the Caribbean (LAC) grew 26-fold between 2000 and 2020. This came at the cost of LATAM’s historically strong trade relations with the United States and Europe, which are witnessing a diversification towards China’s growing economic presence. As per World Economic Forum data, at the current rate, LAC-Chi-
The pandemic provided an opportunity for Beijing to reach out to the worst-affected LAC countries with a soothing touch, providing much needed medical assistance. The goodwill generated has enabled China to further advance its interests through various bilateral agreements with countries throughout LAC, including “comprehensive strategic partnerships” with Argentina, Brazil, Chile, Ecuador, Mexico, Peru, and Venezuela. na trade is expected to exceed $700 billion by 2035, more than twice as much as in 2020. China has quickly replaced leading western countries to become the top trading partner in Brazil, Chile, Peru and Uruguay and has a free trade agreement with Chile, Costa Rica and Peru. Through the trade route, the Chinese footprint has been fast expanding. Today China is an observer/ member in all major LATAM multilateral organisations like the Organisation of American States, Inter-American Development Bank and the Caribbean Development Bank and the Asia Pacific Economic Cooperation forum. The pandemic provided an opportunity for Beijing to reach out to the worst-affected LAC countries with a soothing touch, providing much needed medical assistance,
