The President of China, Xi Jinping

The Consolidation of China in Latin America

In the last decade, the United States has tried to curb China's expansion in Latin America, a region where Beijing has strengthened its influence through strategic investments in infrastructure. A recent example is the inauguration of the Chancay port, one of the most important commercial infrastructure projects in recent years. This port, developed with Chinese support, is set to become a key point for international trade, significantly improving the economic relations between China and Peru.

The Chancay port not only promises to modernize the maritime logistics of the region but is also projected as an engine for economic growth for Peru, with an estimated impact of a 1.8% increase in GDP. The relevance of this project was underscored by President Xi Jinping's participation in the inauguration ceremony, highlighting China's commitment to its strategic alliance with Peru and its growing prominence in the Latin American region.

During his visit to Peru, Xi Jinping oversaw the signing of an agreement to expand the Free Trade Agreement between both countries. This strengthening of the FTA aims to consolidate China as Peru's main trading partner, intensifying cooperation in key sectors such as mining, agriculture, fishing, and manufacturing. The agreement also seeks to eliminate trade barriers and simplify procedures, allowing for more competitive access for Peruvian products to the Chinese market. This initiative reinforces the bilateral strategic relationship and highlights Beijing's growing influence in Latin America.

A similar case occurred in Chile during the government of Sebastián Piñera (2018-2022), when the country led the deployment of 5G networks in Latin America. In 2021, Chile conducted radio spectrum auctions for this technology, adopting a neutral approach that allowed Chinese providers, including Huawei, to participate. This decision, which contrasted with the United States' recommendations to exclude Chinese companies due to cybersecurity concerns, underscored Chile's interest in prioritizing technological development over geopolitical tensions.

However, both in the Peruvian and Chilean cases, the underlying problem seems to be that the United States insists on a stance of not aligning with China under any circumstances, primarily for geopolitical reasons. However, Washington has not offered concrete alternatives in terms of technological innovation or significant trade agreements that would encourage Latin American countries to strengthen their bilateral relations with the United States.

United States: Warnings Instead of Proposals

This lack of attractive proposals has been exacerbated in recent days by announcements from former President Donald Trump to raise tariffs on Mexican products, highlighting an apparent disconnect with the principles of free trade expansion that characterized earlier eras in U.S. economic policy. In contrast, China has seized this gap, offering substantial investments in infrastructure and trade that reinforce its influence in the region.

The strong rhetoric from the United States against China could end up being counterproductive if it is not accompanied by strategies that respond to the economic and development needs of Latin America. This strategic vacuum poses risks for U.S. leadership in the region while strengthening the appeal of China's commercial and technological proposals, especially in a context where nations seek partners committed to economic growth and modernization.

The growing trade relationship between China and Latin America underscores the importance of attracting foreign investments in strategic sectors such as technology and biotechnology. In this regard, courses like “Attracting Foreign Investment: A Guide for Biotechnology Startups and SMEs” offer essential tools for entrepreneurs and small businesses to take advantage of global financing opportunities. This training is especially relevant in a context where emerging economies seek to capitalize on alliances with international actors like China to boost their economic development and innovation.

In recent years, several Latin American countries have tightened ties with China, such as Argentina's incorporation into the Silk Road Initiative, which reinforces Beijing’s influence in the region. Despite geopolitical tensions, with the United States proposing non-alignment with China, nations like Peru, Chile, and now Argentina have chosen to move forward with trade and infrastructure agreements with the Asian giant. This trend reinforces the strategic vacuum left by Washington, which has not offered significant alternatives to these alliances.

In recent decades, U.S. trade proposals for Latin America, such as the FTAA, have become a thing of the past. Despite their criticisms and limitations, initiatives like that, based on free trade, could be more appealing to the region in the current context than the U.S. policy of simply issuing warnings about China's growing presence. As Argentine President Javier Milei noted, referring to China: “They are a phenomenal trading partner, they don’t demand anything,” highlighting the pragmatism of Chinese agreements compared to the geopolitical conditions imposed by other players.

Between Sovereignty and Opportunity

China's growing presence in Latin America marks a profound change in the geopolitical and economic dynamics of the region. Strategic projects such as the Chancay port, the expansion of the Free Trade Agreement with Peru, and Argentina's inclusion in the Silk Road show how Beijing has leveraged the developmental and modernization needs of these countries to establish a strong regional influence.

On the other hand, the United States, historically the main partner of Latin America, seems to have adopted a reactive stance, based more on warnings than on concrete proposals. While in the past it offered initiatives like the FTAA, its recent actions lack the appeal and pragmatism that have characterized Chinese offers. This lack of strategic vision not only weakens its leadership in the hemisphere but also leaves a vacuum that China is filling with multi-million dollar investments and long-term trade relations.

For Latin American countries, the relationship with China has been perceived as a practical alternative that meets their immediate needs for infrastructure, technology, and trade, without the geopolitical conditions traditionally imposed by the United States. Figures such as Argentine President Javier Milei have highlighted this approach, pointing out that China is a “phenomenal trading partner.” However, this shift poses challenges for the region, which will need to balance economic opportunities with the preservation of its political and strategic autonomy.

In this context, the future of U.S. influence in Latin America will depend on its ability to offer proposals that align with the region's development priorities, and its willingness to compete with the attractive Chinese model in terms of pragmatism and tangible results. Only with a renewed approach will it be able to prevent its role in the hemisphere from continuing to decline in favor of a new order led by Beijing.