As Beijing seeks to strengthen its position in a region traditionally dominated by the United States, its foreign minister assured his Bolivian colleague that China will always be the “trustworthy” friend and partner of Latin America.
Speaking at a meeting at the United Nations, Chinese Foreign Minister Wang Yi declared, “Latin America is the home of the Latin American people, and is not any country’s ‘backyard,'” according to a ministry statement.
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Beijing wants to “continuously elevate the China-Bolivia strategic partnership,” Wang said Bolivian Foreign Minister Celinda Sosa.
Many South American nations have developed economic links with China through investment and debt, including Bolivia, which opened diplomatic relations with Beijing in 1985.
According to World Bank data, the resource-rich nation owes China, the largest bilateral lender in the world, more than $1.7 billion.
According to data from the American Enterprise Institute think tank, Chinese companies have made an additional $6 billion in investments, primarily in Bolivia’s transportation, energy, and metals industries.
According to U.S. State Department figures, the country has received around $430 million in U.S. foreign direct investment in Bolivia, primarily in the industrial and oil and gas industries.
With Chinese investments in the area, especially in infrastructure and energy, posing a threat to U.S. dominance, the U.S. and China appear destined to compete for the second term of U.S. President Donald Trump in Central and South America.
After assuming office, Trump wasted no time in criticizing Panama’s connections to China, sending Secretary of State Marco Rubio a warning to stop China’s control over the Panama Canal or face U.S. action.
To Beijing’s dismay, Panamanian President Jose Raul Mulino later declared that his nation will not renew its membership in Chinese President Xi Jinping’s centerpiece Belt and Road Initiative.
Prior to Rubio’s visit, Trump has hinted that military action may be employed to retake the Panama Canal.
Wang remarked, “China supports Latin American countries in defending their sovereignty, independence and national dignity.”
Additionally, he congratulated Bolivia for joining BRICS, a club of emerging countries established by China, India, Russia, and Brazil to challenge a world order controlled by the West. Since then, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates have joined the alliance.
Trump has threatened members of the BRICS with a 100% tariff “if they want to play games with the dollar” and has frequently cautioned them not to question the dominance of “the mighty U.S. dollar.”
However, to avoid Trump’s retaliation, Brazil this week joined the group of Latin American nations who have backed down from one of Trump’s demands: abandoning plans to move toward a unified currency while it is still in the BRICS presidency.
Despite purchasing over $70 billion more from the largest economy in Latin America than the United States, according to U.N. COMTRADE data, Brazil’s top export market, China, does not want to jeopardize the $37 billion worth of commodities it does sell to the American market.
As China seeks to develop more strategic alliances with specific Latin American countries, providing the area with a different source of economic assistance, Trump has not held back from threatening to sever trade connections with the region.
Additionally, he has threatened to use punitive trade remedies against Mexico and Colombia if countries do not act more forcefully to stop illegal immigration to the United States.
In an effort to stop the influx of narcotics and illegal migrants, Mexico pledged to bolster its northern border with 10,000 National Guard personnel.
Gustavo Petro, the president of Colombia, retracted his decision to deny U.S. military aircraft transporting deported migrants, saving the country from a trade war with its largest export market.
