China’s Involvement in Latin America Isn’t Necessarily Good or Bad—It’s Tricky

It is well known that China and the U.S. have been competing for years now militarily, economically, politically, technologically, and more. This competition comes about as China’s economy has evolved past a point of low-tech production and manufacturing, to now directly competing with Western countries in the production of highly advanced goods and technology. Since the 1960s, China has experienced rapid GDP growth and has become a relatively rich country.

With their relatively new power and wealth, China has implemented various strategies to showcase, exercise, and spread its power. While news outlets, think tanks, and government agencies frequently report on blatant Chinese aggression in the Pacific, China’s involvement in Latin America has been somewhat overlooked.

Launched in 2013, China’s Belt and Road Initiative (BRI) is a global collection of China-led infrastructure, development, investment projects that aims to augment China’s economic and political influence. Examples include a railway in Kenya, a port in Peru, and recent mining endeavors in Nicaragua, among many more. While many in the West criticize it, China’s growing presence provides Latin America with an alternative after historically being under Western dominance.

U.S. involvement in the affairs of its southern neighbors extends back over 200 years to the signing of the Monroe Doctrine. This document prohibited European powers from engaging in the Western hemisphere, which the U.S. then saw as their own sphere of influence. Though this document is no longer valid, its inherently imperialist and interventionist sentiments and desire to influence LATAM persisted, as demonstrated by the U.S. acquisition of Puerto Rico (1898), the occupation of The Dominican Republic (1916-1924), the U.S.-backed coup in Guatemala (1963), and the U.S.-backed overthrow of President Allende in Chile (1973), among many more instances. Western hegemony also manifested economically, in the form of structural adjustment programs by development banks like the IMF and World Bank.

China as a trading partner and investor offers these countries the opportunity to further develop their economy after facing economic struggles in past decades from failed protectionist economics policies, as well as the lasting poverty and inequality from the era of colonialism.

Yet the convenient opportunities that China offers for Latin American countries come at the cost of proper environmental standards and labor rights. China’s BRI has been criticized for lacking environmental and safety standards, not meeting international standards for sustainability, and for leading the partner countries into unsustainable development. This also extends to China’s labor standards for projects of the BRI, as there is often a lack of transparency. Further, China’s frequent and extensive importation of Chinese nationals for some of its projects (though some projects utilize local labor), is characterized by a lack of rights for these workers: The CFR reports that workers have their passports seized, wages withheld, and live in company-built housing. Such conditions strip workers of potential resources for self-advocacy.

As the title suggests, it’s tricky. On one hand, China's investments provide Latin American countries with alternatives to Western-dominated policies. On the other hand, these partnerships come with significant concerns over labor rights, environmental standards, and the sustainability of the projects taking place. As China continues to assert its global influence, Latin American countries are faced with having to balance the potential benefits of these investments against the long-term consequences of becoming more aligned with China's geopolitical strategy. Ultimately, Latin America’s future may depend on how its leaders can navigate their relationships with China and the U.S.

Lastly, it is important to note that each project of the BRI greatly varies, especially regionally, and that no topic as complex as the BRI and China’s geopolitical goals can be entirely accurately summarized in a single article.