China challenges U.S. dominance in Latin America's economy
The economic challenge posed by China to the United States, which was previously the leading partner of Latin America, is now a reality, as noted by Latin American media. China is challenging U.S. hegemony in the region, which has persisted for about two decades.
In November last year, Xi Jinping flew to South America to officially open the seaport in Chancay, Peru, built as part of China's Belt and Road Initiative. The cost of this investment reached $3 billion.
Latin American media consider this trip to be the beginning of China establishing a strong position in this part of the world. Xi met with leaders from Mexico, Brazil, Bolivia, Chile, and Argentina. He emphasized his desire to strengthen economic ties with South America.
According to Latin American media, China has assumed the role of leading economic partner in the Latin American economy and is competing here with the United States. They challenge the long-standing U.S. hegemony in Latin America, which has lasted for about two decades. In at least six countries—Panama, Peru, Chile, Uruguay, Brazil, and Bolivia—China has been building its position slowly but effectively.
Expert: Trump made a cardinal error
As noted by media throughout Latin America, U.S. President Donald Trump suspended further American foreign aid programs for the weakest countries in the region during the first month of his administration.
American professor Carol Wise, an expert on Chinese foreign policy, accused the Trump administration of "committing a cardinal error in foreign policy." This was seen as an example of "blatant hostility towards many Latin American countries, which China eagerly exploited."
As an example, Mexican media noted that Chinese companies began replacing their former American partners with partners from Mexico. However, this process did not start in January of the year Trump took office. Sales of Chinese goods in Mexico increased from just over $5 million in 2013 to $600 million in 2022. This trend is currently intensifying.
Since the beginning of Trump's presidency, China has rapidly been replacing Mexico's traditional American partner, notes the Mexican press.
They point out that the pace of these changes is accelerating every week. However, according to official data, Mexican-American trade remains about seven times larger than trade with China.
China cooperates with 20 Latin American and Caribbean countries
More than 20 countries in Latin America and the Caribbean are already participating in China's Belt and Road Initiative. This initiative aims to expand China's global influence by financing expensive, large-scale investment projects.
Since the beginning of 2023, eight presidents from South American countries have officially visited Beijing.
Read also:
