China's Growing Influence in Latin America: Challenging U.S. Power
For more than a century, the United States has exercised significant power in Latin America, influencing the region's political and economic landscape. However, with the recent opening of a Chinese port in Peru, the recent contract that allowed a Chinese-owned company to build the subway in Colombia’s capital, and the growing trend of nearshoring of Chinese companies in Mexico, the historical dominance of the United States in Latin America is increasingly being challenged by China's strategic investments. As Latin American countries welcome this new alliance, it is important to consider whether turning away from U.S. dependence will only result in reliance on another superpower– China.
On November 14th, President Xi Jinping attended the inauguration of the Chancay port on the coast of Peru. Once operational, the port has the potential to create a direct connection to Asian markets by allowing products from Chile, Ecuador, Colombia, and Brazil to bypass entirely North American trade channels. This project not only highlights China's desire to acquire more of Latin America’s raw materials, such as Brazilian soybeans and Chilean copper, but also represents a potential military component. As some U.S. analysts warn, the port could serve as a gateway for Chinese naval vessels, posing “the most dangerous regional threat to U.S. national security since the Cuban Missile Crisis”.
In Mexico, the nearshoring trend—that is the relocation of US and Asian firms from China to northern Mexico to bypass US tariffs on Chinese exports —illustrates another dimension of China’s growing influence in Latin America. Facing U.S. tariffs and the prospect of a trade war, Chinese firms have turned to northern Mexico to continue their operations. In the state of Nuevo León alone, Chinese companies accounted for 30% of foreign investment in 2021, second only to the U.S. Although this influx of foreign capital certainly helps Mexico's economy, it risks undermining U.S.-Mexico relations as Mexico could find itself caught in the crossfire of a potential trade war between the U.S. and China.
Further south, in Colombia’s capital, the Bogotá metro project represents yet another significant Chinese investment. The Chinese state-owned companies, China Harbour Engineering Company and Xi’an Rail Transit Group, were awarded the contract to build and operate the system, a significant achievement in one of Latin America’s largest economies. The system's construction and operation by Chinese state-owned enterprises represent a symbolic shift for Colombia, a longtime ally of the United States, toward closer ties with Asia.
Taken together, these developments suggest a potential change in the world order, with China positioning itself as a viable alternative to U.S. influence in Latin America. For many, China has managed to fill the void left by the U.S. government's failure to address the region’s issues under previous administrations that prioritized immigration and drug control over broader regional engagement. Yet, this change in direction makes one wonder if trading one dependency for another truly represents progress for Latin America.
he idea of independence from the United States is compelling, especially in a region where anti-American sentiment has historically persisted. However, as Chinese investment grows, so too do concerns about a new form of neocolonialism—one where infrastructure and resources serve China’s strategic geopolitical interests rather than fostering genuine autonomy for Latin America. This certainly raises a critical question for Latin American leaders, but it also poses a significant threat to Washington as it directly challenges the historic U.S. hegemony over the Western Hemisphere.