By Zoila Palma: China is rapidly expanding its presence in Latin America, strengthening trade and investment ties with countries including Brazil, Argentina, and Chile, Mexico business reports.
According to China’s Ministry of Commerce, direct investment in the region reached US$14.7 billion in 2024, while UNAM data shows that investment inflows between 2010 and 2019 were nearly seven times higher than in the previous decade, although growth has slowed since the pandemic.
Beijing’s long-term interest in Latin America, first signaled in 2011 by Jin Liqun, then-president of China Investment Corp, has evolved into a broader strategic effort that now encompasses multiple sectors and infrastructure projects.
Last month, China unveiled a new official roadmap for Latin America and the Caribbean, its third since 2008, identifying priority areas for collaboration, including artificial intelligence, telecommunications, renewable energy, hydrogen, and mineral processing.
The plan also integrates the region into China’s Belt and Road Initiative, covering transportation, housing, electricity, and urban infrastructure projects across 20 countries.
These moves come as Latin America becomes an increasingly important alternative market for Chinese exports amid ongoing tariff disputes with the United States, with shipments to the region rising nearly 8% to US$276 billion by November 2025.
Trade between China and Latin America has grown dramatically over the past two decades.
Chinese exports to the region have increased almost elevenfold, driven by manufactured goods and, more recently, electric vehicles, while imports from Latin America—including iron, copper, soy, and oil—have grown fourteen times.
But China has not yet overtaken the United States in the region.
“Latin America exports three times more to the United States than to China… For Mexico and Central America in particular, the United States remains far more important, and these countries would likely yield to American pressure to limit Chinese investments and imports,” said William Jackson, Chief Economist for Emerging Markets at Capital Economics.
Mexico has already taken steps to counterbalance Chinese imports amid U.S. pressure.
A major overhaul of the country’s Law of General Import and Export Taxes (LIGIE), effective January 2026, updated 1,463 tariff lines across 17 strategic sectors, targeting goods from China and other Asian countries.
“Mexico has limited room to resist U.S. demands, especially as trade tensions rise and sectors such as steel push for stronger protections,” noted Guillermo Barba, Chief Economist at Top Money Report.
The reforms are framed as a way to strengthen domestic industry and reduce reliance on foreign goods but also reflect the geopolitical influence of Washington.
However, even as China’s influence in Latin America is growing, the region’s economic dependence on the United States remains significant.
The post International News: Why is China expanding economic influence in Latin America? appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: China is rapidly expanding its presence in Latin America, strengthening trade and investment ties with countries including Brazil, Argentina, and Chile, Mexico business reports. According to China’s Ministry of Commerce, direct investment in the region reached US$14.7 billion in 2024, while UNAM data shows that investment inflows between 2010 and 2019 were
The post International News: Why is China expanding economic influence in Latin America? appeared first on Belize News and Opinion on www.breakingbelizenews.com.
