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South America shifts trade focus to China

As China’s economic influence in South America grows rapidly, the United States’ trade dominance in the region is weakening. Countries like Argentina, Brazil, and Peru are strengthening their trade ties with Beijing, while U.S. sanctions push the region to seek alternatives. China's investments and expanding trade volume are reshaping the economic balance in Latin America.

South America shifts trade focus to China

China's growing economic presence in South America appears to be weakening the United States’ strategic influence in the region. Argentina’s new leader, Javier Milei, who had made strong anti-China statements during his campaign, has seen trade relations with Beijing improve since taking office. Argentina's soybean and lithium exports to China have increased by 15%, while Brazil, Chile, and Peru have also deepened their trade ties with Beijing. Over the past few years, South America’s exports to China have doubled, whereas trade with the U.S. has remained stagnant.

U.S. President Donald Trump has escalated sanctions on South American countries in an effort to reshape global trade. He imposed a 25% tariff on Mexican and Canadian goods and an additional 10% tariff on Chinese imports. However, these aggressive policies have driven regional economies to explore alternative trade partners. Brazil now enjoys a $30 billion trade surplus with China, while Peru has officially recognized Beijing as its largest trade partner. Experts suggest that Washington’s pressure may further push South America toward China.

Meanwhile, China views the region as a vital source of raw materials and continues to expand its investments. Beijing has strengthened its economic ties with Latin American nations through infrastructure projects and trade agreements, arguing that U.S. policies are only accelerating South America’s pivot toward China. The Chinese Ministry of Foreign Affairs recently stated that economic relations between China and Latin America have reached an irreversible point.

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