China is still invested in Latin America.

China Strengthens Ties with Latin America Amid US Policy Shifts

A recent report from The New York Times highlights China’s efforts to enhance its influence in Latin America, particularly in light of the United States’ evolving stance under the Trump administration. Starting Tuesday, Chinese President Xi Jinping will welcome Brazilian President Luis Inacio Lula da Silva in Beijing, alongside other leaders from the Caribbean and Latin America.

This initiative appears to be a strategic move by China to build stronger connections in the region, especially as the US adopts a more vigilant approach towards its policy interests in South and Central America. “Lula views China not just as a trading partner but also as a crucial player in reshaping global power dynamics—a way to counterbalance US predominance,” said Matias Spektor, a political science professor at Brazil’s Fundação Getulio Vargas University.

The discussions will likely center on enhancing trade relations, particularly as many Latin American countries have employed tariffs to protect their local industries, which affects international ties. Following the 2023 election that saw Lula triumph over former right-wing President Jia Bolsonaro, Bolsonaro now faces legal challenges related to accusations of money laundering tied to undisclosed assets.

China is a significant trade partner for Brazil, with exports to China totaling approximately $106 billion in 2023. Brazil is also an important participant in China’s Belt and Road Initiative, despite criticisms regarding the project as a form of debt diplomacy.

Lula is not the only notable South American leader meeting with Xi. Colombian President Gustavo Petro is also expected to attend, which further underscores the shifting allegiances in the region.

Petro, elected in 2022, aligns with leftist ideologies and faced a complex situation shortly after taking office regarding the handling of stolen aircraft, which he navigated carefully to maintain diplomatic tensions.

According to The New York Times, China has successfully established itself as a lucrative trade partner in Latin America, with total trade reaching $519 billion. However, many Latin American countries tend to adopt protectionist policies, and their approach often diverges from that of the US. Ryan Berg, director of the American Continental Program at the Center for Strategic and International Studies, noted that these countries have a historical inclination to protect local jobs and industries.

Berg expressed that while many nations, Brazil included, foster good relations with China, they also align with the US to safeguard certain industries from risks like being overwhelmed by Chinese steel and aluminum.

Xi’s belief in maintaining favorable trade relations with Latin America reflects a broader shift in foreign policy priorities, moving away from the past indifference witnessed in previous administrations. Meanwhile, the recent US administration, led by Secretary Marco Rubio, has sought to reinforce support in the region and achieve multiple policy objectives during visits.