A comprehensive analysis reveals China’s rapidly expanding economic influence throughout Latin America and the Caribbean, with bilateral trade reaching a record $510 billion in 2024—nearly double the volume recorded a decade earlier. According to research from think tank ODI Global, China has solidified its position as the primary bilateral creditor and second-largest overall trading partner for the region, trailing only the United States.
The detailed study, examining economic interactions from 2013 to 2024, demonstrates several transformative trends. Four nations—Brazil, Mexico, Chile, and Peru—account for 76% of China’s regional trade, with Brazil alone representing 36% of total merchandise exchange. Since 2018, more than half of Latin American and Caribbean countries have joined China’s Belt and Road Initiative, seeking infrastructure development and enhanced economic cooperation.
Financial data shows China extended over $145 billion in loans to the region between 2013 and 2021, with majority being non-concessional financing. Notably, many countries now repay more to China than they borrow anew, with Beijing holding over half of the region’s official bilateral debt.
Investment patterns are evolving significantly, with Chinese foreign direct investment shifting from traditional energy and mining sectors toward renewable energy and manufacturing. Clean energy investments surged by 50% between 2015-2019 and 2020-2024 periods, reflecting strategic diversification.
Despite geopolitical tensions and U.S. efforts to discourage engagement, China’s economic relationships continue strengthening through trade networks, manufacturing partnerships, and integrated supply chains that extend beyond formal initiatives. Research Fellow Elena Kiryakova notes that competing powers must offer superior economic value rather than treating the region as an arena for geopolitical competition.