U.S. response to rising Chinese investment in Latin America and the Caribbean
As reported a few months ago by El Observador Research Center, China is currently positioned as the third largest source of foreign capital in Latin America and the Caribbean. In fact, between 2015 and 2020, Chinese investment in the region amounted to some US$74.85 billion, allocated to the exploitation of natural resources, the energy sector, the transportation sector, and the telecommunications sector. The Jinping Government’s Belt and Road initiative provides a common purpose for these investments within the region and worldwide. In this respect, the investment in Latin America and the Caribbean by Chinese companies appears to be continuing, despite the setbacks caused by the effects of the pandemic.
The US, the largest importer of capital in the region, was quick to respond. In fact, the government of President Joe Biden sent an expert delegation in early October to explore investment projects in public works and infrastructure in the region. The delegation, led by Daleep Singh (Deputy National Security Advisor for International Economics), met with the presidents of Colombia, Ecuador, and Panama to explore the possibility of financing, and of developing joint infrastructure projects with these three Latin American countries. According to the US President, the delegation’s trip is part of the B3W initiative, launched in July of this year by the G7 countries, to serve as an alternative to China’s New Silk Road. Also, according to Biden’s statements before the United Nations General Assembly, US investment in Latin America is expected to increase cooperation ties with countries that share US democratic values and thus counteract Chinese influence in the region. Benjamín Gedán, deputy director of the Wilson Center’s Latin American Program, mentioned that, if implemented, these investments would be fundamental in a region that has exponentially increased its commercial relationship with China.
Lead story:
El Observador (2021). Estados Unidos invertirá en América Latina para contrarrestar el alcance de China.
Additional sources:
France24 (2021). Biden apuesta a Latinoamérica para contrarrestar el peso de China.