China is taking steps to strengthen economic ties with Latin America in an attempt to counteract its economic slowdown. The Asian powerhouse is actively developing infrastructure and entering into trade agreements in the region.
China's Trade Agreements and Infrastructure in Latin America
The Chinese administration shows interest in growing trade relations with Latin America. Trade between China and Latin America has increased 25 times over the past two decades, thanks to policies and infrastructural projects.
China Boosts Trade Volume with Latin America
Bilateral trade between China and Latin America surged from $12 billion in 2000 to $315 billion in 2020. By 2022, trade volumes reached an all-time high of over $480 billion. Economists predict further growth as China intensifies bilateral agreements. China's contribution, such as the construction of a major port in Peru, is set to reduce shipping costs by 20% and shorten delivery times by 23 days.
U.S. Concerns Over China's Growing Influence
The growing influence of China in Latin America raises concerns in the U.S. They object to China's investments, particularly in the Peruvian port development, which they suggest may serve military purposes. Concurrently, President Donald Trump has promised to increase tariffs on Chinese goods.
China's economic efforts in Latin America present new opportunities for both regions but spark international debate and opposition.
