This Shocking Alliance Between South America and China Will Have You Questioning Everything!

Last week, Chinese President Xi Jinping arrived in Lima, Peru, for the Asia-Pacific Economic Cooperation (APEC) summit, receiving a reception that highlighted Peru’s growing alignment with China. His visit, which included a state visit honor, contrasted sharply with the arrival of U.S. President Joe Biden, who was greeted with minimal fanfare. While Xi enjoyed a prominent position at the summit, Biden’s place was less visible, drawing attention to the shifting dynamics in the region.

The disrespect shown to the U.S. was hard to ignore. In a symbolic moment during the group photo of the summit’s leaders, Xi stood in the prime spot next to Peruvian President Dina Boluarte, while Biden was relegated to the back corner. This moment encapsulated a larger trend where America, traditionally seen as the dominant force in the Western Hemisphere, is now being sidelined. Meanwhile, China, with its strategic investments and partnerships, continues to strengthen its influence across South America.

China has become the largest trading partner of both Peru and South America at large, presenting itself as a key player in what it calls “South-South cooperation.” This term is central to China’s outreach, which promotes itself as a champion of the “Global South.” In practice, however, this cooperation often means that China buys raw materials like soybeans, copper, and petroleum from South American nations, while exporting cheaper manufactured goods. This trade dynamic has drawn comparisons to neo-colonialism.

“China’s refusal to buy local manufactures will help leave the region mired in poverty,” says trade expert Alan Tonelson. “Only Mexico is likely to escape this fate, thanks to its USMCA trade agreement with the United States and Canada.” This stark observation underscores the unequal nature of China’s trade relationships in the region, a pattern that mirrors the economic colonialism seen in other parts of the world.

China’s influence is also growing through large-scale infrastructure projects. Its Belt and Road Initiative, which has stalled in many regions, is steadily advancing in South America. One of the most notable developments is the $1.3 billion Chancay Port in Peru, which held its grand opening last week. Xi Jinping attended the ceremony via video link, signaling China’s growing presence in the region.

The Chancay Port is poised to become a key logistics hub, with China’s COSCO shipping giant overseeing operations. R. Evan Ellis, a professor at the Army War College, explains, “Chancay is intended to be the core of a new hub-and-spoke logistics system,” positioning China to dominate not just the trans-Pacific trade route, but also markets throughout Latin America. Ellis warns that the port’s strategic location could reshape trade flows and even change the balance of power in the Western Hemisphere.

In fact, the control China now has over Chancay Port could present significant military implications. As Tonelson points out, the port’s control by COSCO “could end up giving Beijing’s navy extensive access to the Western Hemisphere.” This, he argues, is a “major challenge to the Monroe Doctrine,” which has historically sought to prevent foreign powers from establishing a foothold in the Americas. The potential military use of such a key port would undoubtedly heighten tensions between the U.S. and China, much like the Cuban Missile Crisis of 1962.

The implications of China’s growing presence in the region are more than just economic. The U.S. has failed to address these trends adequately, despite the obvious security risks. The Obama administration’s 2013 renouncement of the Monroe Doctrine was seen as a sign of waning U.S. influence. Yet, Secretary of State Rex Tillerson’s efforts to reinstate aspects of the doctrine five years later emphasized the need for a renewed commitment to protecting the Western Hemisphere from outside interference.

In light of these developments, the U.S. must take immediate action to regain influence. One step could be revitalizing trade agreements like CAFTA-DR, the free trade pact with Central America and the Dominican Republic. Strengthening ties with key South American countries like Argentina, which has shown interest in bolstering relations with the U.S., could also be vital. Argentina’s new president, Javier Milei, is a proponent of free-market policies, and his government could play a crucial role in deepening economic connections with the U.S.

However, economic ties alone may not be enough to reverse China’s hold on the region. Even Peru, a nation with a free trade agreement with the U.S., is firmly in China’s orbit. That said, trade remains a powerful tool. U.S. leaders, including former President Trump, have spoken of increasing tariffs on goods from China. In contrast, lowering tariffs on goods from Latin America could help America reassert its economic presence in the region.

Gordon G. Chang, a noted expert on Chinese geopolitics, highlights the importance of addressing this issue head-on. “China’s Project to Destroy America” and “The Coming Collapse of China” are just two of his works that explore these issues in depth, warning of the long-term consequences if the U.S. fails to act. To regain its footing, the U.S. must recognize the shift in the region’s economic and political landscape and adapt its strategies accordingly. As China continues to extend its reach, the stakes for U.S. influence in Latin America have never been higher.