Can The U.S. Counter China’s Expanding Investments In Latin America And The Caribbean?
China’s influence in Latin America and the Caribbean (LAC) continues to grow, raising concerns about whether the United States can counter Beijing’s expanding economic footprint. With U.S. President Donald Trump cutting USAID funding and reinforcing his "America First" policy, many analysts believe China’s role in the region will only strengthen.
China’s Expanding Economic Presence in LAC
Since 2000, China has invested over $193 billion in Latin America and the Caribbean, while its two major policy banks - the China Development Bank and the China Export-Import Bank - have loaned over $120 billion to finance energy, infrastructure, and transportation projects.
Major Chinese Investments in LAC (2005-2024):
2007: BOSAI entered Guyana’s bauxite industry with a $60 million investment, later adding $115 million.
2009-2015: $18 billion invested in Venezuela’s energy sector in exchange for oil shipments.
2010: China’s State Grid Corporation acquired stakes in Brazil’s power transmission industry for $989 million.
2011: China’s sovereign wealth fund acquired a 10% stake in Trinidad and Tobago’s Atlantic LNG.
2013: Chinese company Baishanlin pledged $100 million to Guyana for processing facilities and equipment to meet China’s demand for rare wood.
2015: CNOOC Petroleum Guyana Limited, a wholly owned subsidiary of CNOOC Limited, invested in a 25% interest in the Stabroek Block in Guyana. ExxonMobil Guyana Limited is the operator and holds 45% interest, and Hess Guyana Exploration Ltd. holds 30% interest. Last year, China National Offshore Oil Corporation (CNOOC) has initiated arbitration proceedings to assert its rights over Hess’ stake in the Stabroek oilfield in Guyana in the event of a sale to Chevron.
2017: China’s Jiuquan Iron and Steel Company (JISCo) purchased Jamaica’s Alpart alumina refinery for $299 million.
2017: Completed a $48 million road project in Guyana.
2018: China completed a $3.5 billion railway upgrade in Argentina.
2021: China’s State Grid Corporation acquired Companhia Paulista de Força e Luz (CPFL) in Brazil for $3.2 billion.
2022: Secured a $192 million contract (funded by China Eximbank) to expand the East Coast Demerara highway in Guyana.
2022: Chinese company Sinopharm contracted to build six new regional hospitals in Guyana.
2023: China invested $1.3 billion in Bolivia’s lithium sector, securing a major stake in critical battery metal production.
2023: $100 million renovation of Pegasus Hotel in Georgetown, Guyana.
May 2023: Contracted to build a $260 million Demerara River bridge ($172 million funded by Bank of China), in Guyana.
2024: The $3.5 billion Port of Chancay in Peru was inaugurated, strengthening China’s trade route to South America.
Trade between China and LAC continues to grow. Between January and September 2024, total trade reached $427.4 billion, a 7.7% year-on-year increase.
China’s Caribbean Investments (2005-2024)
China has invested over $10 billion in key Caribbean nations, focusing on tourism, transportation, agriculture, and energy:
Jamaica: $3.16 billion
Guyana: $3.01 billion
Trinidad and Tobago: $2.28 billion
Antigua and Barbuda: $1 billion
Cuba: $740 million
Bahamas: $350 million
China's New Foreign Investment Action Plan
On February 19, 2025, China introduced a comprehensive action plan to stabilize foreign investment, reaffirming its commitment to high-standard economic modernization. Approved by the State Council, the plan outlines key measures to attract and retain foreign investment by:
Expanding market access in biotechnology, telecommunications, education, and healthcare.
Easing financial restrictions for foreign investors.
Creating a fairer business environment to boost investor confidence.
In 2024, China established over 59,000 new foreign-invested enterprises (FIEs), with annual foreign investment inflows exceeding US$137.29 billion for three consecutive years.
Trump’s Policies and the U.S.-LAC Divide
Despite China’s growing engagement with the US’ backyard, Trump’s return to office has already strained U.S.-LAC relations, much like during his first term.
Trump’s USAID cuts and “America First” policies signal reduced U.S. economic engagement.
Trump reinstated sanctions on Cuba (February 2025), reversing Biden-era policies and potentially pushing Cuba closer to Beijing.
Stricter border control measures could drive LAC nations to strengthen ties with China.
China Seizes the Opportunity
As the U.S. pulls back, killing USAID and focusing on fighting narco-trafficking and illegal immigration only, China is strengthening diplomatic and trade relations:
January 13, 2025: Xi Jinping met with Grenadian Prime Minister Dickon Mitchell, reinforcing China’s commitment to the Caribbean.
January 16, 2025: China’s Xinhua News Agency met with Cuban officials to deepen media and cultural ties.
January 2025: China expressed support for Surinamese Minister of Foreign Affairs Albert Ramdin to lead the Organization of American States (OAS).
February 2025: The Dominican Republic received 120 ambulances from China, enhancing its healthcare system.
China is also advancing Free Trade Agreements (FTAs):
Fifth round of China-Honduras FTA negotiations (2024).
Upgraded China-Peru FTA (2024), expanding trade cooperation.
Caribbean Leaders Praise China’s Support
Caribbean officials have commended China’s growing role in regional development just this month:
Carlos Lovell, Chief of Staff of the Barbados Defence Force, highlighted China’s contributions to food security and sustainable farming, saying it allows the region to leverage technology for sustainability.
Latrae Rahming, Director of Communications at the Office of the Prime Minister of the Bahamas, emphasized China’s longstanding partnership with CARICOM, spanning education, healthcare, and infrastructure.
Antigua and Barbuda’s Prime Minister Gaston Browne credited China for supporting the construction of a new terminal at V.C. Bird International Airport and investing in socio-economic infrastructure, healthcare, and scholarships.
Grenada’s Foreign Affairs Minister Joseph Andall, following Prime Minister Dickon Mitchell’s official visit to China, called Beijing a "reliable and valuable partner for the Global South."
The Future of U.S. Influence in LAC
With Trump focusing on US domestic policies, trade barriers, the war in Ukraine and Israel/Gaza, and sanctions, China is likely to expand its economic footprint in Latin America and the Caribbean. The lack of a consistent U.S. regional strategy could leave many LAC nations increasingly reliant on China for trade, infrastructure, and financial support.
As China opens its markets to foreign investors while continuing large-scale investments in LAC, the region faces a shifting economic balance. Without a stronger U.S. economic and diplomatic approach, China’s influence is expected to grow, further challenging U.S. dominance in the hemisphere.