This article is adapted from AQ’s special report on China and Latin America
China’s thriving ties with Latin America and the Caribbean still lack the depth and breadth of the U.S. relationship with the region. Beijing clearly has a long-term strategic vision, but it is hard to imagine that it will develop the kind of cultural and social bonds that are essential for long-term, deep relationships. Moreover, much of China’s progress has stemmed from the United States’ relative disengagement from the region—a vacuum that is now beginning to close.
China has become South America’s largest and most significant trading partner, mainly due to its hunger for raw materials like copper, iron ore and lithium. These resources are exported to China and then resold to Western markets. However, many of the large infrastructure projects China has planned have not yet come to fruition. Considering that Beijing is now more focused on tech, telecoms, critical minerals, vehicles and green energy, these projects may never fully materialize after all.
In contrast, the U.S. continues to be Latin America’s biggest foreign investor. I would also say that U.S. and other Western companies remain the preferred economic partners in the region. Washington is also recognizing an obvious truth: Countering China’s growing influence in the region requires resources and commitment. Most investment will come from the private sector, but the government must play a catalytic role with some resources if the U.S. wants to compete.
Recent encouraging signs suggest that U.S. economic engagement has increased, and that policymakers better understand the importance of building public-private partnerships to support regional investment. This is happening especially quickly when it comes to critical minerals. The U.S. has finally understood that, for our long-term security, we need to mine and refine these minerals at home and within our hemisphere.
Imagine the strength of a renewed U.S. commitment to the region—one that combines economic investment with genuine cultural ties across the Americas. It’s a winning formula for a hemisphere that is united, prosperous and secure.
ABOUT THE AUTHOR
Susan Segal
Reading Time: 2 minutesSegal is President and CEO of Americas Society and Council of the Americas.
