The Presence of China in Latin America

In recent decades, China has become increasingly interested in Latin American countries. It has been using the aid and investment to increase its presence in Central America, challenging the United States' two-century-old diplomatic dominance in the region.

It is clear that China has an interest in Taiwan. And his intention is to drown it financially by making other countries turn their backs on the island. China has been offering economic assistance to Central American countries such as Panama, El Salvador and Nicaragua. In return, China asks these countries to switch Taiwan's diplomatic recognition to China. This puts small developing countries under enormous pressure. Do they continue to support Taiwan, or do they accept Chinese aid in exchange for their loyalty to the country? China's most recent investment occurred in El Salvador, where President Nayib Bukele thanked China for financing the country's new national library, construction of which began on February 6, 2022.

The United States has spent decades focused on the Middle East, Asia, and Europe. They have never faced an economic threat so close to home. Based on their history in the region, it is unlikely that they will allow the Chinese to continue to gain influence in the United States. The United States has remained silent on this situation, but is expected to react in the coming years.

China is South America's largest trading partner and is second only to the United States in trade with all of Latin America. It has signed free trade agreements with three countries, Chile, Costa Rica and Peru, and began negotiations with Ecuador last February. Twenty years ago, all of Latin America recognized Taiwan's sovereignty, only eight nations in the region still do so. Recently, China has used the promise of loans and infrastructure investments to turn the tables on the Dominican Republic and Nicaragua on the issue of Taiwan's sovereignty. China has so far been successful in getting countries to switch sides. These are the countries that currently recognize mainland China as a trading partner

It is very likely that the United States will try to gain influence of its own by investing in foreign companies or providing humanitarian aid to the region. If this happens, the United States is expected to do a lot of business with Latin American companies. Business that will grow the Latin American economy and recover its influence in the region as China continues to make its way in the area. As we watch this economic fight between China and the United States, it is important to be prepared for the possibility of an economic boom for some of these countries. The possibility that the United States close contracts with companies in Central and South America is real. Small business owners should find out about the processes that the United States follows to create business opportunities