Latin America and the Great U.S.-China Power Struggle
China’s “big bang” exit from COVID presents a number of opportunities for Latin American countries. Yet, investors are aware of the increasingly contentious nature of the relationship between the United States and China. U.S. President Joe Biden has used the term “extreme competition” to describe it. Interestingly, Latin American countries stand in the middle of this great power struggle, which generates both opportunities and risks for the region.
UBS and the Wilson Center’s Latin American Program hosted a conversation on the challenges of the U.S.-China bilateral relation and the implications for Latin America. Leaders from South America are increasingly looking to China to expand their markets as alternative to U.S. trade. They are also hesitant to join sides in the U.S.-China power struggle.
The United States sees Latin America prosperity as a strategic necessity but continuous blockage from Congress has made aid a cumbersome process. China, on the other hand, sees Latin America’s relations closely linked to its own economic objectives, but changes in its national economy are making aid more limited opening a new phase for cooperation and trade.