The following is the opinion and analysis of the writer:
Ronald Eustice
I am writing from Puno, Peru, on the shores of Lake Titicaca. After my next stop in Bolivia, I will have visited all South American countries. I am fluent in Spanish and can communicate effectively with ordinary people on the street, and I listen carefully. Some observations:
— China's trade with South America is booming, driven by Chinese demand for raw materials like Peruvian copper and Brazilian soybeans and increasing sales of Chinese goods to South America, such as electronics, vehicles, and machinery. In 2024, bilateral trade reached a record $518 billion and growing, making China the top trading partner for South America. This deepening relationship is marked by infrastructure development, including China's new Chancay port in Peru, which facilitates trade and increases China's influence in the region.
— U.S. trade with South America is dwarfed by China's and involves exchange of vehicles, industrial supplies, and agricultural products, with countries like Brazil, Colombia, and Chile being major partners. In 2024, total U.S. trade with South and Central America was approximately $365 billion, with exports totaling $206.1 billion and imports at $664.7 billion. The US has traditionally run a trade surplus with the region. Meanwhile, President Trump is telling Americans we are being “ripped off,” which is a lie. Trump’s tariffs are bound to affect US exports to South America and encourage even greater China-South American cooperation at the expense of US business, especially agriculture.
— Peru is China’s largest South American trading partner with a strong, growing trade relationship. Bilateral trade reached $39.76 billion in 2024, a 10.9% increase over the previous year. The trade balance is favorable to Peru, which exported $25.23 billion and imported $14.53 billion in 2024, resulting in a surplus of $10.69 billion for Peru. Resources like Peru’s copper, and fishing products and China's supply of manufactured goods such as electronics, machinery, vehicles, and textiles. machinery and vehicles drive trade.
— A key factor boosting China-South America trade is the new Chancay Port, which is part of China’s Bridge and Road project (BRI). The construction of the port significantly cuts shipping times and costs, especially for Peru's agricultural products. The Chancay Port offers a direct route to Shanghai, reducing transit time to China by about 23 days.
— Most Central and South American countries are important partners of China’s Bridge and Road project. Very few Americans have heard of the Belt and Road Initiative, which is a global infrastructure development strategy adopted by the government of the People’s Republic of China in 2013 to invest in urban land corridors linked by road, rail, energy, and digital infrastructure and the Maritime Silk Road linked by the development of ports. The initiative was incorporated into the Chinese Communist Party constitution in 2017.
— There are currently over 150 countries that have signed Memorandums of Understandings to partner with Chinese companies. These projects are heavily financed by Chinese banks and China has become the world’s leading creditor. Many developing countries, including many in South America are poor credit risks, and to what extent the loans will be paid back is questionable. In the event of default, China will become the “owner” of considerable infrastructure and real estate stretching across the globe. As of 2025, there are 195 countries in the entire world, so we can see that China’s reach into more than 150 (80% of the world) is immense.
So, why does this matter? Through more than 60 years of international work and travel, it has become obvious to me that China has become a dominant player on the world stage and its extensive economic involvement in nearly 80 percent of the world’s countries should be a cause of deep concern. Meanwhile, the United States has become more isolationist, especially during Trump’s "Make America Great Again" campaign. Given China’s central role in the global economy, its vast renewable energy resources, and its technological leadership in key industries, it is well-positioned to accomplish the goal of becoming the world’s most powerful nation by 2049, when it celebrates its centennial as a Communist nation. America, take note!
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