When China’s trade with Latin America reached a record US$518.4 billion in 2024, it marked a fundamental shift in hemispheric economics. Beijing is now the largest bilateral creditor and second largest trading partner of Latin America and the Caribbean, with President Xi Jinping pledging a new credit line of 66 billion yuan (US$9.2 billion) at the 2025 China-Celac (Community of Latin American and Caribbean States) forum.

Chinese investment has evolved from extractive industries towards clean energy and manufacturing, with electric vehicle production expanding across Brazil and Chinese-made vehicles capturing 57 per cent of Ecuador’s market by the first half of this year.

Washington’s response under President Donald Trump has not been subtle. Rather than competing economically, the administration has reverted to traditional gunboat diplomacy under the so-called Donroe Doctrine.