China Sets a New Benchmark with BRI Expansion, While Latin America Recedes in Influence

In a significant development, Chinese clean technology manufacturers have invested a record $9.7 billion in green energy, such as wind and solar, marking a strong commitment to sustainable energy solutions.

This investment is part of a broader economic relationship between China and Latin America. In 2024, the total trade between the two regions reached $518 billion, making China the second-largest trading partner of Latin America and the largest for South America.

Chile, Argentina, and Bolivia, collectively known as the "Lithium Triangle," have seen increased interest from Chinese companies like Tianqi Lithium and Ganfeng Lithium. These companies are expanding their presence in the region, recognising Latin America's role as a global supplier of essential minerals such as lithium, copper, and rare earths.

The energy sector, including oil, gas, and coal, accounted for $42 billion, the highest volume in a semester since the start of the Belt and Road Initiative (BRI) in 2013. However, coal remains on the list despite Chinese President Xi Jinping's 2021 pledge to cut external financing for this energy source.

President Xi announced US$10 billion in credits for the region during a summit between China and the countries of Latin America and the Caribbean, further strengthening economic ties.

China's strategic priority for Latin America is evident, with the region playing a central role in China's food and energy security. South America exports large volumes of soy, copper, lithium, iron ore, and oil to support China's industrial economy.

The electric vehicle sector is a growing area of focus in China's relationship with Latin America. Chinese companies like BYD, GWM, and Chery are investing in production and infrastructure in the region. In the renewable energy sector, Chinese companies like Goldwind are investing in local production to serve the established domestic market and support expansion in South America.

Brazil, Chile, and Peru have become deeply integrated into Chinese value chains. However, Chinese investors are rethinking their strategy in Latin America due to socio-environmental impacts of past projects. As a result, Latin America saw a decline in BRI deals in the first half of 2025.

In contrast, the focus of BRI investments shifted towards Asia in the same period. The BRI saw the highest volume of deals in a six-month period during the first half of 2025, totaling $123 billion. The large loans from Chinese state banks for BRI projects in Latin America have fallen to almost zero.

Despite these changes, the relationship between China and Latin America remains solid, with the region at the centre of interest of Chinese investors and other actors, especially in trade. Costa Rica, for instance, is attracting growing interest from Chinese exporters of parts and equipment due to pioneering policies on clean mobility.

As the BRI continues to evolve, it is clear that China's relationship with Latin America will remain a key component of its global strategy, with potential for further growth in sustainable and mutually beneficial partnerships.

China Sets a New Benchmark with BRI Expansion, While Latin America Recedes in Influence