China’s Economic and Political Role in Latin America

This is the first of three studies into the economic and political influence of China in Latin American and the Caribbean, and the implications for the region’s relations with Europe and the US. This report aims to answer the questions: How has China’s role in the Latin American and Caribbean (LAC) region developed, and, especially, what have been the nature and impact of recent economic and political relations between China and Latin American countries, as well as perceptions and reactions in the region? Our analysis concurs with many studies of China’s relations with developing regions, and indeed with Latin America and the Caribbean, in finding that economic goals are the central driving force underwriting Chinese engagements in the region. China–LAC relations have developed predominantly through bilateral and market channels, and the sectoral focus continues to expand. Chinese economic interests were initially focused on the LAC region’s mineral wealth (mining and oil), then expanded towards a wide range of infrastructure projects, and now also include electricity generation and distribution, energy transition, telecommunications and digital technologies. The Chinese government has supported the ambitions of Chinese companies and banks in the region through active bilateral diplomacy and the provision of large development loans. One question in the debate on China’s presence in Latin America (and elsewhere) is how Chinese economic activities are connected to, or even directed by, political concerns and how to assess the implications of both in the shorter and longer terms.