{"id":1880,"date":"2025-02-27T05:16:00","date_gmt":"2025-02-27T05:16:00","guid":{"rendered":"https:\/\/mexiconewsreport.com\/?p=1880"},"modified":"2025-02-27T05:39:09","modified_gmt":"2025-02-27T05:39:09","slug":"chinas-economic-ties-with-latin-america-including-mexico","status":"publish","type":"post","link":"https:\/\/mexiconewsreport.com\/index.php\/2025\/02\/27\/chinas-economic-ties-with-latin-america-including-mexico\/","title":{"rendered":"China’s Economic Ties with Latin America (Including Mexico)"},"content":{"rendered":"\n

In recent years Chinese economic ties in Latin American countries have increased greatly.
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China (left in red) and the Western Hemisphere (right in red). Source: mapchart.net<\/a><\/figcaption><\/figure>\n\n\n\n

Brenda Estefan is a writer for Mexico’s Reforma newspaper and also a professor at IPADE Business School in Mexico City. (IPADE, Instituto Panamericano de Alta Direcci\u00f3n de Empresa<\/em>, is the business school of Universidad Panamericano<\/em>, a private Mexican university.)
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Brenda Estefan.
Source:Americas Quarterly<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n

Professor Estefan has an article on the China\/Latin America topic in the America’s Quarterly<\/em>, entitled Latin America\u2019s China Ties Won\u2019t Be Easily Severed<\/a> .<\/p>\n\n\n\n

Estefan writes that “Over the past two decades, while the U.S. focused on the War on Terror and conflicts in Iraq and Afghanistan, China strategically expanded its economic presence in Latin America and the Caribbean, transforming from a peripheral player into a key trading partner. Former U.S. Treasury Secretary Larry Summers acknowledged that he underestimated  <\/a>this shift: ‘When a Latin American head of state asked me for something, I lectured them. While I was preaching, the Chinese were building airports.’ \u201d<\/strong>
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Source: Americas Quarterly<\/a><\/figcaption><\/figure>\n\n\n\n

Here’s how Estefan presents the big picture: “China has established a significant presence in many nations across the Western Hemisphere by lending to countries in urgent need, donating public libraries, building ports and roads, and extracting iron ore and vital minerals. Furthermore, trade between China, Latin America, and the Caribbean soared from $12 billion in 2000 to $315 billion in 2020, with projections indicating it could surpass $700 billion by 2035. China is now South America\u2019s largest trading partner, with Brazil\u2019s trade with China exceeding its trade with the U.S. by more than two to one. Beijing currently maintains ‘strategic partnerships’ with 10 of the 11 South American nations it engages with, with Guyana being the only exception, as it maintains only standard bilateral relations.<\/strong>“

Here is some information from the article about individual Latin American countries and their China relationship, concluding with Mexico:<\/p>\n\n\n\n

COLOMBIA – “Seen by many as the staunchest and most loyal U.S. ally in the region, the U.S. is Colombia\u2019s top trading partner, in contrast to the several South American countries whose largest trading partner is China. Still, Chinese imports have surged in recent years, making the Asian behemoth the country\u2019s second-largest\u00a0trade relationship.<\/strong>“<\/p>\n\n\n\n

BRAZIL – “…Brazil\u2014Latin America\u2019s largest economy\u2014is largely a lost cause for Washington, as it has significantly deepened its ties with Beijing. Chinese firms have invested in major infrastructure projects ranging from ports and railways to power grids. China is now Brazil\u2019s largest trading partner, absorbing most of its exports, including soy, beef, coffee, and iron. In 2023, bilateral trade reached a record $181 billion. Moreover, Brazil and China have strengthened their geopolitical ties through BRICS, further complicating Washington\u2019s ability to exert influence.”<\/strong><\/p>\n\n\n\n

ARGENTINA- “In Argentina, President Javier Milei presents a unique dynamic. While he shares a strong ideological affinity with Trump, his country\u2019s economic ties to China\u2014especially in the agricultural sector\u2014are significant. The relationship between Argentina and China developed gradually between the 1970s and 2009, culminating in a major financial agreement: a currency swap between the Central Bank of Argentina (BCRA) and the People\u2019s Bank of China (PBOC). The goal was to ensure Argentina\u2019s exchange rate stability and strengthen bilateral trade. Since then, economic cooperation has deepened, with China becoming Argentina\u2019s largest buyer of agricultural products.”<\/strong><\/p>\n\n\n\n

PERU- “Peru attracts the highest level of Chinese investment relative to GDP in Latin America. The most recent\u2014and largest\u2014of these investments is the Chancay deep-water port, designed to serve as a direct trade link between China and South America…”<\/strong><\/p>\n\n\n\n

CHILE – “Over the past seven years, Chinese investment in Chile has surged by 1,300%, with notable acquisitions in strategic sectors. Chinese firms now control over 60% of Chile\u2019s electricity distribution market following purchases like Chilquinta and General Electricity Company (CGE).”<\/strong><\/p>\n\n\n\n

PANAMA “Following a visit by U.S. Secretary of State Marco Rubio, President Jos\u00e9 Ra\u00fal Mulino announced Panama\u2019s withdrawal from China\u2019s Belt and Road Initiative and indicated that his government might reconsider the concession granted to Hong Kong-based Hutchison Ports, which operates key terminals at both ends of the interoceanic canal.”<\/strong><\/p>\n\n\n\n

MEXICO
“Mexico is one of Washington\u2019s most significant cases, given its deep economic integration with the U.S. through the USMCA. A recent article in The New York Times<\/em> highlighted that China\u2019s growing presence in Mexico\u2019s auto industry is a key factor driving Trump\u2019s push to expedite the USMCA trade agreement review. Since 2018, Chinese investment in Mexico has surged by 50% annually. In 2024, Mexico became China\u2019s second-largest auto market, surpassed only by Russia. Manzanillo, the country\u2019s busiest port, has seen a substantial rise in imports since 2020, mainly driven by Chinese goods. According to Norwegian logistics firm Xeneta, the Mexico-China trade route is now the fastest-growing in the world. Chinese companies have also played pivotal roles in major infrastructure projects in Mexico, including the Xochimilco-Tasque\u00f1a light rail and metro system upgrades in Mexico City and Monterrey. Even more, a recent study by Rice University\u2019s Baker Institute suggests that Chinese investment in Mexico may be ten times higher than official figures indicate.<\/strong>“<\/p>\n\n\n\n

“Trump understands that China\u2019s presence in Mexico doesn\u2019t technically violate USMCA terms, but that won\u2019t alleviate his concerns. The idea of his primary geopolitical rival being deeply embedded in his largest trading partner\u2014and positioned just across the 3,000-kilometer U.S.-Mexico border\u2014is unacceptable. Unlike other Latin American nations, Mexico\u2019s trade relationship with the U.S. is not merely important\u2014it is fundamental to its economy, making it more vulnerable to Washington\u2019s efforts to curb Beijing\u2019s influence.<\/strong>“<\/p>\n\n\n\n

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In recent years Chinese economic ties in Latin American countries have increased greatly. Brenda Estefan is a writer for Mexico’s Reforma newspaper and also a professor at IPADE Business School in Mexico City. (IPADE, Instituto Panamericano de Alta Direcci\u00f3n de … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[381,282],"tags":[401,293,399,397,23,403,54,400,407,408,409,404,5,405,406,402],"class_list":["post-1880","post","type-post","status-publish","format-standard","hentry","category-economy","category-foreign-policy","tag-argentina","tag-brazil","tag-brenda-estefan","tag-chile","tag-china","tag-colombia","tag-donald-trump","tag-ipade-business-school","tag-javier-milei","tag-jose-raul-mulino","tag-manzanillo","tag-marco-rubio","tag-mexico-city","tag-panama","tag-panama-canal","tag-peru"],"_links":{"self":[{"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1880"}],"version-history":[{"count":4,"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1880\/revisions"}],"predecessor-version":[{"id":1887,"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1880\/revisions\/1887"}],"wp:attachment":[{"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mexiconewsreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}