China’s Activities in Latin America

Topics / Spotlights

China is not a peripheral actor in Latin America and the Caribbean (LAC); it has become one of the region’s most significant economic and strategic partners. Between 2000 and 2021, China provided approximately $382.63 billion (constant 2021 USD) in development finance to LAC, expanding its footprint through infrastructure, energy, and extractive sector investments. Unlike traditional Western lending, Chinese financing has often come with fewer governance and transparency conditions, paired with public diplomacy efforts aimed at strengthening Beijing’s image. 

In recent years, China’s engagement has entered a more selective and strategically focused phase. Bilateral trade reached $518.47 billion in 2024, driven by Latin American exports of minerals, soybeans, and lithium, alongside expanding Chinese exports of manufactured goods, telecommunications equipment, and electric vehicles. However, Latin America’s share of Belt and Road Initiative spending has declined for three consecutive years, accounting for just over 1% of construction spending and 0.4% of outbound investment in the first half of 2025. Sovereign lending and large-scale infrastructure finance have slowed compared to their mid-2010s peak. 

Rather than retreating, Beijing is recalibrating. Reflecting domestic priorities focused on financial risk control and technological upgrading, Chinese firms are concentrating on strategic sectors such as lithium, renewable energy, ICT infrastructure, and electric vehicle manufacturing, often through smaller, targeted investments. At the same time, China is expanding its security presence through its Global Security Initiative, supporting an estimated 35 “Safe City” surveillance projects and deepening law enforcement cooperation across the region. These evolving patterns underscore a shift from expansive infrastructure lending to a more diversified, technology, and security-oriented approach, highlighting the adaptive nature of China’s influence in the hemisphere.