China is making friends right under America’s nose.
Latin America is China’s latest business buddy. Chinese banks increased investments in Latin America by 71% last year, and the country plans to double its trade volume with the Central and South American region over the next decade.
This comes as U.S. power in the Americas is starting to erode. U.S. cash is actually fleeing the region as investors see better deals at home or elsewhere.
China doesn’t appear as worried about the short-term.
“What we’re looking at is not simply an economic play. It’s an economic play that also has political and strategic undertones,” says Ilan Berman, vice president of the American Foreign Policy Council in Washington.
Outside of economic ties, Berman points out that China has helped fund Argentina’s nuclear power plant, launched Bolivia’s first satellite and is rumored to be helping Venezuela start its own drone program.
Trading Places: Although America is still the No. 1 trade partner with Latin America, China is already beating it in some places. China is ahead of the U.S. in trade with Brazil, Argentina, Peru and Venezuela, according to M.I.T. data.
Full article: China’s big chess move against the U.S.: Latin America (CNN)