In recent years, Latin America has become a key region where global power dynamics are being reshaped. In particular, China’s growing influence in the region through economic and infrastructure investments is giving rise to a new strategic competition in the Western Hemisphere, which has traditionally been viewed as the United States’ (U.S.) sphere of influence. The “Summit of the Americas” meeting, organized by the Donald Trump administration to bring together leaders from Latin America and the Caribbean, also represents a new phase of this competition. This initiative is viewed as an indication of Washington’s efforts to revitalize regional relations, which are believed to have weakened in recent years.
The summit planned by the Trump administration aims to bring together the U.S.’s allies in Latin America to establish a common ground on regional security and strategic cooperation. Leaders from countries such as Argentina, Paraguay, Chile, Panama, Honduras, Guyana, El Salvador, and Ecuador are expected to attend the summit. Most of these countries are governed by administrations that have established close ideological ties with the Washington administration. Conversely, the absence of key regional actors such as Brazil, Mexico, and Colombia from the meeting underscores the continued political diversity and differences in foreign policy preferences within Latin America.
This U.S. initiative is seen as a response to China’s growing economic presence in Latin America. Over the past two decades, China has been building an extensive economic network in the region through trade, credit, and infrastructure investments. In the process, China has not only increased its trade volume but has also established significant influence over regional economies through financing and infrastructure projects. Indeed, China has now become one of Latin America’s largest trading partners. This development is prompting a reevaluation of Washington’s traditional economic and diplomatic approach to the region.
Infrastructure projects play a key role in the expansion of China’s influence in Latin America. Major investments, such as the Chancay mega-port in Peru or the Bogotá metro project in Colombia, are increasing the visibility of Chinese capital in the region. These projects yield significant results not only in terms of economic development but also in terms of the reshaping of trade networks. Chinese financial institutions and state-owned banks are providing substantial credit for infrastructure projects in Latin America. These financing mechanisms serve as an alternative source of development funding for many governments in the region.
The scale of these economic ties is also evident in the figures. It is reported that between 2014 and 2023, China provided approximately $153 billion in financing to the Latin American and Caribbean region. During the same period, the United States’ contribution remained at approximately $50.7 billion.[1] These figures demonstrate that China’s economic presence in the region is not limited to trade alone but has expanded through credit and investment channels. Furthermore, while trade volume between China and Latin America accounted for less than 2% of the region’s total exports in 2000, it is reported to have exceeded 450 billion dollars as of 2021.[2] It is projected that this trade volume could exceed 700 billion dollars by 2035.[3]
China’s economic activities in the region are not limited to trade and credit. The Beijing administration is also investing in infrastructure projects in Latin America as part of the Belt and Road Initiative. Launched in 2013, this global initiative initially aimed to establish infrastructure links between Asia and Europe. However, over time, it has evolved into a broader economic network encompassing Africa, Oceania, and Latin America. It is reported that approximately 20 countries in Latin America have joined this initiative. This situation demonstrates that the Latin American component of China’s global economic strategy is growing increasingly stronger.
One of the key areas of focus for Chinese investments is strategic mineral resources. In particular, the “lithium triangle” formed by Argentina, Bolivia, and Chile holds a significant portion of the world’s lithium reserves. With the advancement of electric vehicle technologies and energy storage systems, lithium has become a strategic resource for the global economy. For this reason, Chinese companies and financial institutions are making significant investments in lithium projects in the region. The aim of these investments is not only to secure a reliable supply of resources but also to gain control over the technological chain that plays a critical role in the energy transition process.
In light of these developments, it is evident that the U.S. strategy toward Latin America is being reshaped. The Washington administration is seeking to strengthen regional cooperation networks by prioritizing issues such as security, migration, and illicit drug trafficking. However, some experts note that U.S. policies toward the region often exhibit a reactive and delayed character. According to this view, China’s establishment of long-term economic ties with Latin America necessitates that Washington develop a more comprehensive economic and diplomatic strategy.
Latin American countries, meanwhile, are striving to maintain a careful balancing act amid this great power competition. Many governments are maintaining their commercial ties with China while also striving to preserve strategic cooperation with the U.S. and Europe. This approach demonstrates that the region’s countries do not wish to remain dependent on a single power center in foreign policy. In particular, major economies such as Brazil and Argentina are working to diversify their relationships with various economic partners.
As a result, Latin America has become one of the key arenas of global power competition today. China’s economic investments and infrastructure projects are influencing the region’s development dynamics. The United States, meanwhile, is seeking to re-establish its influence in the region through diplomatic and security-focused initiatives. However, the most critical issue for Latin American countries is to avoid entering into a relationship of dependency that would limit their foreign policy options while seeking to capitalize on the economic opportunities arising from this competition. For this reason, countries in the region are striving to increase economic diversification and adopt a more flexible strategy in international relations by maintaining a balance among the major powers.
[1] Cristobal Vasquez, “China Spent Years Building Ties in Latin America. Can Trump Make Room for the US?” BBC News, https://www.bbc.com/news/articles/c5yvw0zwpd5o, (Date Accession: 15.03.2026).
[2] Ibid.
[3] Ibid.
