China maintains strong economic footprint across Latin America

China continues to hold significant economic influence across Latin America, with its investments and trade relationships spanning infrastructure, energy, mining and technology despite growing geopolitical competition with the United States.

Trade between China and Latin America has expanded dramatically over the past two decades, rising from just over US$14 billion in 2000 to more than US$500 billion in 2024. China has also overtaken the United States as South America’s largest trading partner, according to reports.

Chinese companies have become increasingly involved in major infrastructure projects. In Colombia, a Chinese-led consortium is working on Bogotá’s first metro line, while Chinese investment has also expanded across the region’s electricity sector.

Energy remains another major area of engagement. Chinese companies reportedly control a significant share of electricity transmission and distribution assets in Chile, while Chinese state-owned firms provide electricity to millions of residents in Peru’s capital, Lima.

Beijing is also strengthening economic ties with individual governments. Ecuadorian President Daniel Noboa recently visited China and met President Xi Jinping, with cooperation discussed in areas including solar energy and technology to improve responses to the El Niño climate phenomenon.

China’s presence in critical minerals is also growing, including investments connected to tin production in Brazil.

The expansion comes as the United States seeks to reinforce its own economic relationships across the region and some countries introduce measures aimed at protecting domestic industries from foreign competition.

Despite those pressures, China remains deeply integrated into several of Latin America’s most important economic sectors, underscoring the region’s growing importance in global trade and investment competition.