For more than two decades, China has developed close economic and security ties with many Latin American countries, including Brazil, Peru, and Venezuela. But Beijing’s increasing sway in the region continues to raise concerns in Washington, prompting greater U.S. engagement.
In May, China hosted the fourth ministerial meeting of the China-Community of Latin America and Caribbean States (CELAC) Forum in Beijing. Colombia signed onto the Belt and Road Initiative. Public opinion polling showed the United States is ceding ground to China in South America.
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In April, Argentina renewed a $5 billion currency swap line with China despite objections by the United States. Latin American countries stand to gain as China orients away from U.S. agricultural suppliers amid escalating trade tensions. The Panamanian Comptroller-General announced plans to file criminal charges against the Hong Kong company that operates two ports in the Panama Canal.
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In March, Mexican President Claudia Sheinbaum said her government would review tariffs on Chinese imports. Venezuela boosted oil exports to China in the face of U.S. sanctions and questions over the extension of Chevron’s license to operate in the South American country. CK Hutchison Holdings agreed to sell its majority ownership of two ports at either end of the Panama Canal to BlackRock.
In February, U.S. Secretary of State Marco Rubio traveled to the region and warned of Chinese encroachment. Several Latin American countries expanded trade and investment relations with China. Chinese-funded mining projects went online in Bolivia and Argentina.
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This month, Mexico announced plans to curb imports from China across key industries including automobiles, aerospace technology, and textiles. Peru launched investigations into alleged Chinese dumping practices, while Argentina decided to loosen its antidumping measures. Panama started an audit of the Hong Kong-based company that operates two ports in the Panama Canal amid President Donald Trump's repeated claims of Chinese interference in the waterway.
Panama has owned and administered the Panama Canal for nearly three decades. President Trump wants to change that to counter growing Chinese influence in Latin America.
In December, China countered U.S. President-elect Donald Trump’s claims about the Panama Canal. Brazilian labor authorities uncovered “slavery-like conditions” at a construction site for Chinese electric vehicle manufacturer BYD. Mexico introduced new tariffs targeting Chinese textiles and e-commerce platforms.