While recent events highlight the risks in volatile states, China’s position in Latin America is rooted in deep trade and investment links with the region’s largest economies
In light of these events, how might China’s economic relationships with Latin America be framed? Should China scale back its involvement in the region?
While less central to China than Southeast Asia, Latin America has played a crucial role in China’s global trade and investment portfolio in the Global South. In 2024, China’s trade with Latin America stood at US$518.5 billion, more than half the level with Southeast Asia and 75 per cent higher than that with Africa. China is the largest trading partner of several South American countries and the second largest for Latin America as a whole.
From an investment perspective, Latin America is even more important. China’s foreign direct investment (FDI) in Latin America has recovered significantly, from US$8.7 billion in 2023 to US$14.7 billion in 2024. While lower than the level in Southeast Asia, China made more than four times the direct investment in Latin America as in Africa in 2024.
Rubio says US to control Venezuelan oil sales indefinitely
