China in Latin America: To BRI or not to BRI

During the first decade of the year 2000 China was consolidated as the first or second major trading partner for most countries in Latin America and the Caribbean (LAC), and in the following decade there was a large increase in foreign direct investment and financing. The region ceased to be the US of America’s (US) “backyard” and has now become part of that country's economic, commercial, and political dispute with China. The Belt and Road Initiative (BRI), launched in 2013, became increasingly interwoven with the expansion of Chinese capital and foreign policy, creating an alternative to Western-dominated globalization. From this perspective, it is not surprising that Chinese diplomacy began to seek the formal integration of its LAC partners in the BRI. Unlike most literature on the issue, this article will use a holistic approach to combine the political and economic dimensions as well as the interaction between Chinese push and LAC pull factors. At the same time, we will focus attention on the geopolitical context, specifically the rivalry between China and the US. For this, we will follow an international political-economy approach. We also will combine a general overview with four select case studies that will help us to understand not just the general trend, but also the specificities of the relationship. This chapter comes to three conclusions. First, the relationship is maturing, and a rising learning curve on both sides will be examined. Second, the degree of integration and acceptance of the BRI is not a determining factor that explains the intensity of the relationships. In addition, the third, although the US has given little attention to the increase in Chinese presence, this is rapidly changing in the context of the global rivalry between the two superpowers.