China’s Diplomatic Strategy in Latin America: An Emerging Form of Soft Power

In the recent past, activity of the Chinese diplomatic in the region has extended immensely and therefore the geopolitical architecture in the western hemisphere has expanded as well.

In the recent past, activity of the Chinese diplomatic in the region has extended immensely and therefore the geopolitical architecture in the western hemisphere has expanded as well. From being a side-lines in China ‘s comprehensive diplomacy, Modern Latin American countries are now an important area of interest to Beijing in terms of economic and political influence in the operational form of trade, investment and partnership. As China aims higher in the global system, a new role in Latin America has emerged for assertively competing with U.S. hegemony in the region.

Economic Engagement: The Foundation of Influence

The main component of Chinese foreign policy in Latin America is Economic Power Cooperation between China and Latin America – Economy, Trade Economy and Trade Cooperation between China and Latin America. The ECLAC has been informed that China turned into the second biggest trading partner with over $450 billion in 2023. There are substantial Chinese BRI investments in sensitive industries including power, transportation and communication. For instance, China’s State Grid Corporation was able to attain controlling stakes in Brazil’s power infrastructure system, and Huawei is busy establishing 5G systems ranging from Argentina and Chile and many other nations.

As a foreign policy flagship program, the Belt and Road Initiative (BRI) is still blooming in the Latin American region. Nineteen countries in Latin America signed agreements to become parties to the BRI, which allows China to finance infrastructure such as ports, railways, and energy plants. Such investments do double up to improve China’s economic presence in the region while at same time creating long-term entrenchment, establishing Beijing a lot of influence with political elites within the region.

Diplomatic Manoeuvres: Navigating U.S. Influence

China’s course in Latin America goes beyond economic diplomacy and investment in commerce and constructions. China’s main capital Beijing has been interested in enhancing political and cultural cooperation with the region. A case is its vaccine diplomacy amidst the COVID-19 pandemic. Chinese vaccines, particularly the Sinovac and Sinopharm brands, were shipped far and wide throughout Latin America, earning China the affection that was lacking when developed countries only cared about what they were doing to inoculate their citizens.

In this case, diplomacy has seen the emergence of the China-CELAC Forum which has offered Beijing diplomatic avenues into the region. The latest one was the 2024 summit, where China once again pledged to further a “win-win” cooperation with Europe that would focus on the problem of sustainable development as well as innovations. This has made it possible for China to portray itself as a stable partner rather than a less stable one as is the case with current policy under the Obama administration in America.

Security and Defense: Military Relations and Interest Domains

While it’s been mostly emphasized that China’s interest is primarily economic, there are increasing sights of its military power in the region. The People’s Liberation Army of China has registered military cooperation with countries such as Venezuela and Ecuador, and has undertaken the training of military forces in several South American countries. Such a deal was signed in 2023 between the Chinese government and Argentina regarding military cooperation and it raised alarm in the White House. They are clear signs that Beijing is interested not only in an economic but also a protracted political encroachment in a part of the world that traditionally fell under American domination.

Challenges and U.S. Response

The fact that China is now looming large over Latin America is not lost on the United States. In July 2023 the US Secretary of State Antony Blinken stated that the US needs to look at Latin America again and stay there otherwise China will move in. The USA has answered with its own infrastructure investments and trade agreements, but many countries of Latin America prefer not to get too entangled with either power, balanced relations are deemed preferable.

Nevertheless, Chinese increasing role in Latin America is not without challenges as will be discussed below. Existence of politically unstable countries such as Venezuela and Nicaragua where China has invested has become a big threat to Beijing. Also, some sectors in the region are becoming intolerant of China due to the effects of Chinese mining on the environment and worries over being a part of China’s economy.

Conclusion: New Paradigm in the Western Hemisphere

Since it expresses a new form of diplomacy that China employs in Latin America, it is now seen as a new face of international politics. After acquiring much economic power and influence over its neighbors, China is seeking to gain a place as a major actor in the western hemisphere. This expansion is considered threatening by the US side, but for the Latin American countries, it is possibly a rich chance to look for new associates. With an ever increasing rate of investments in South, East and Central America, the balance of power in Latin America will undoubtedly shift in the next decade, and this time through the emergence of a new power—a new player in the Western world.

This makes it important for global political actors to take keen interests in the evolving power relations brought about by China’s progression in Latin America since its diplomatic expansion in the LAC will inevitably continue to define the new nature of relations in the region. The upcoming years will indicate whether Beijing will be able to continue the expansion or face another round by a region always aligned with the USA.

Wania Jahangir Khan
Wania Jahangir Khan
Wania Jahangir Khan is a geo-political analyst, with a particular focus on the South Asian region. She is working as a Senior Research Associate at Global Defense Insight. She can be reached at Wania.jahangir[at]defensetalks.com