On Wednesday, the British newspaper Financial Times said that the US president is losing the battle for supremacy in Latin America with the Chinese leader. The newspaper analyzes the influence of both countries in the region rich in mineral deposits through the prism of the recent meetings held in Peru and Brazil.
The author of the article in the Financial Times newspaper describes two group photos of leaders who participated in the meetings of the Asia-Pacific Economic Community (APEC) in Lima and the G20 in Rio de Janeiro. In both photos, Xi Jinping is front and center, surrounded by Latin American leaders. In one photo, Joe Biden is standing in the corner, in the second row, and in another photo, he is absent.
Explanations were given in both cases. For the photo at the APEC meeting, the leaders were arranged in alphabetical order, and the photo was taken from the G20 meeting before Biden arrived. According to the FT, these photos can be read as a metaphor for China's growing dominance in Latin America.
Photo of the participants of the APECPAP/Abaca summit
Fight for influence in the region
Competition between superpowers for influence in the region is important because of its rich natural resources. Latin America is 57 percent. the world's lithium deposits, 37 percent of copper deposits, about one-fifth of oil deposits and one-third of fresh water, as well as the largest virgin forest on earth – the British daily emphasizes.
Xi brought a delegation of several hundred Chinese businessmen to Peru, during which he announced the completion of the first phase of the Beijing-funded Chankai Grand Water Port, north of Lima. The total cost of the project, which is expected to revolutionize transportation between China and South America, is estimated at $3.5 billion.
Biden announced the transfer of an aid package to Peru in the fight against drug crimes in the amount of 65 million dollars, including nine Black Hawk helicopters, as well as used trains from California for the subway network in Lima – emphasized “FT”.
– It was a strange comparison. There is a massive Chinese megaport project that evokes the history of Peru from the Incas and its quest for greatness. On the other hand, Biden provided more helicopters to destroy coca crops. “It seems completely out of date and outdated,” said Georgetown University professor Michael Shifter.
According to the British newspaper, the same thing happened in Brazil, which is the largest economy in the region. Biden visited the Amazon rainforest and pledged $50 million for a fund to protect it, while Xi, who was felicitated in Brazil on Wednesday, is expected to talk about China's multibillion-dollar investment there.
China is ahead of the US
The annual volume of trade between China and Latin America increased from 12 billion dollars in 2000 to 450 billion dollars in 2023. China has overtaken America as the largest trading partner of many countries in the region. The exception is Mexico, which has a preferential trade agreement with the US.
Alex Contreras, who was Peru's finance minister when Chancay port was built, said Latin America welcomes any investment because there is not enough. – If you have to choose between investment and Chinese investment, you always prefer investment, – he added.
While US officials often express concern over China's growing influence in Latin America, Washington's response has so far been disappointing, the FT said. According to Shifter, the plans for cooperation with the region announced by Biden look good, but they do not have concrete commitments.
Some experts believe that the return of Donald Trump to the White House will lead to China's economic dominance in Latin America.
Main photo source: PAP/Abaca
