China’s careful new focus on Latin America

In the last year, China has been more carefully regulating its financial interests in Latin America. In particular, the teetering political and economic situation in Venezuela jeopardizes its relationship with China on the grounds that Venezuela will likely be unable to repay the $20 billion that it owes its largest creditor, in the form of petroleum or otherwise. Ecuador has been looking to diminish its reliance on Chinese investment firms in its infrastructure projects as well, since the change in its presidency. On the other hand, China has been more focused on lithium extraction in other countries such as Argentina, Chile, and Bolivia. Command of the global lithium market has been a long-term goal for China for decades now, and this certainly helps it advance to that end. This goes hand-in-hand with the Chinese Import-Export Bank’s investment in the largest solar panel field in Latin America, in Jujuy, Argentina, as control over multiple investments and financial activities within the same region tends to only strengthen investors’ influence in all.

You can read the full report on GIS report online.