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The Real Story: China's advance into Latin America

Factual

China's advance into Latin America

29/01/2021 GMT

BBC World Service - The Real Story, China's advance into Latin America

How is China reshaping trade and politics in the US's backyard?

How is China reshaping trade and politics in the United States' backyard?

This month, in a highly unusual move, an American government agency bought nearly $3bn of debt from Ecuador that was owed to China. The aim – in the form of fresh loans – was to help Ecuador pay off 'predatory Chinese debt', strengthen its alliance with the United States and exclude Chinese companies from developing the country's telecoms network. Although the deal came at the end of the Trump presidency, it may encourage other South American countries to reach similar arrangements in the future. According to the UN, Chinese companies have invested $10bn a year in Latin America. Although the amount is far less than that of the United States, Chinese companies have made rapid inroads into the heart of Latin American economies, including in crucial sectors such as mining, power grids and telecommunications. There's speculation that many leaders find Chinese investment attractive because it's rarely tied to anti-corruption measures. Others say countries are walking into a Chinese-made 'debt trap' which will have negative economic consequences over the long run. So is China viewed by those across the region with suspicion, or as a welcome alternative to the United States - which has a controversial history operating outside its own borders? What's been the tangible impact of China's economic advances in Latin America, and will President Biden seek to cooperate with China in the region - or treat it as a strategic threat? Join Ritula Shah and guests as they discuss China's growing influence in Latin America.

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