Chinese Investments in South America: Concern in the United States

Chinese investments in South America are a matter of concern for the United States. However, it should be made clear that the American power has not continued its economic expansion in the region.

While Chinese investments in South America are more politically motivated, in the case of U.S. companies, it is more about profitability.

“We need to ask ourselves why the critical infrastructure and resource extraction in the region is under such aggressive pressure from investments by Chinese state-owned companies,” said General Laura J. Richardson, the head of the United States Southern Command.

Following a brief personal introduction by Richardson, a native of Colorado, the first security topic was addressed.

These statements were made during a meeting with students from the International University of Florida, and the conversation was led by a journalist and director of the John S. and James L. Knight Foundation in Miami.

“Our trade with the Americas amounts to USD 740 billion,” Richardson analyzed.

She explained that it includes not only South America, Central America, and the Caribbean but also Mexico and Canada.

“And it has remained flat, while China, which had relatively low levels around 2002, has been on an upward trajectory. The United States remains the number one trading partner for the entire Americas, but China has surpassed the United States in South America. Today, China is South America’s top trading partner, with the United States coming second.”

The general provided figures on the global importance of the region: Latin America holds more than 25% of the world’s potential best agricultural land, and currently, 50% of the world’s soybeans are produced there.

Furthermore, it is estimated that by 2028, 25% of global agriculture and fishing will also take place in the region.

Regarding energy in South America, 60% of the world’s lithium is found in the triangle that encompasses Argentina, Bolivia, and Chile.

However, other minerals such as gold and copper, as well as oil, are also well-known resources in the region.

Chinese Investments in South America

Concerning Chinese investments in South America, the official emphasized the aspect of extraction versus investment.

“When it comes to what the United States and China are doing in the region, I think we need to talk about investment versus extraction,” Richardson argued.

She believes that China bundles its instruments of power in a neatly named package called the Belt and Road Initiative (BRI), a comparison to the New Silk Road.

“Twenty-two out of 31 countries in this region have signed onto China’s BRI, and other countries in the region have projects involving China. It’s not that this is inherently bad, but there are many examples of the initiative worldwide that are cases of extraction, which is the opposite of investment. We need to make investments.”

According to many experts, China may not have an interest in democracy in the region. “And an attack on democracy in one place is an attack on democracy everywhere,” defined the head of the Southern Command.”

Also read: Mexico’s economy continues to expand.