News Americas, New York, NY, May 23, 2025: While the United States doubles down on deportation policies and scolds regional partners for aligning with Beijing, China is swiftly cementing its role as Latin America’s leading economic benefactor.
At a high-profile China-Community of Latin American and Caribbean States, (CELAC) forum, President Xi Jinping pledged a staggering $9.2 billion credit line aimed at transforming the region through investments in infrastructure, clean energy, artificial intelligence, and digital connectivity. This financial surge comes alongside a three-year cooperative blueprint covering over 100 joint projects in trade, education, public health, and food security.
In a symbolic gesture to deepen integration, China also announced the elimination of visa requirements for citizens of Brazil, Argentina, Chile, Peru, and Uruguay – further signaling its intent to ease movement and bolster diplomatic warmth.
China’s economic rise in Latin America is undeniable. It surpassed the United States as South America’s top trading partner in 2020, with trade soaring past $500 billion in 2024. Analysts predict that number could hit $750 billion by 2035.
Unlike the Cold War-era ideological battles, China’s approach is strategic and pragmatic. “This isn’t the Soviet Union. China isn’t exporting communism,” said Evan Ellis of the U.S. Army War College. “It’s protecting its growth and shielding itself from U.S. pressure.”
China’s ambitions extend beyond just trade. It’s securing long-term access to key commodities like oil, copper, lithium, and agricultural goods—integral to feeding its 1.4 billion people and powering its tech-driven economy. Beijing has already invested an estimated $180 billion across the region, with major stakes in power plants, telecoms, highways, and renewable energy.
Scientific partnerships are also on the rise. From vaccine research to AI and biomedicine, Latin American universities are increasingly collaborating with Chinese institutions in patent development and innovation.
In contrast, Washington has responded with warnings and criticism. This week, U.S. officials applauded Panama for exiting China’s Belt and Road Initiative, lambasted Argentina for renewing a currency deal with Beijing, and discouraged credit support for Chinese-linked infrastructure projects, including Bogotá’s metro.
However, the tone of U.S. engagement stands in stark contrast to China’s strategy of offering financial solutions over ideological demands. “China is filling a gap left by the U.S.,” said Francisco Urdinez of Chile’s Pontifical Catholic University. “Their main tool is financial – an enormous wallet, not ideology.”
As the U.S. clings to old influence mechanisms like sanctions and deportations, Beijing’s big-money diplomacy and collaborative outreach may be shaping the region’s future. For many in Latin America and the Caribbean, the appeal of partnership with a nation focused on economic growth, rather than political control, is hard to ignore.
