The Novel Scramble for South America: US vs. China
A strategic chess match is unfolding in South America, pitting the United States against China. This comes after two decades during which Beijing successfully penetrated a region the presidency of Donald Trump, invoking the Monroe Doctrine, now views as its exclusive sphere of influence.
However, this is a complex game, and China doesn’t appear ready to concede. Le Monde dedicates extensive coverage to the situation, highlighting the challenges the US faces in reversing years of Chinese economic and political inroads.
The Roots of Chinese Economic Expansion
The French publication explains that the foundations of China’s economic and commercial expansion were laid by two key factors. Following the September 11th attacks in 2001, the George W. Bush administration was preoccupied with the global war on terror, overlooking the implications of China’s entry into the World Trade Organization (WTO). This allowed the Chinese National Bank to extend approximately €100 billion in loans to Latin American countries. The second factor was the presidency of Barack Obama, who largely accepted and permitted China’s growing presence in South America.
This approach is a source of frustration for Trump, as evidenced by his actions in Venezuela.
Trade, Commodities, and Infrastructure
Over the past two decades, China has positioned itself as a financier focused solely on business, willing to engage with any government to secure the resources it needs. This includes dealing with Brazil’s Lula to obtain pork, and Argentina’s Cristina Kirchner to acquire soybeans and import rare earths from Chile for electric vehicle production. This has led to substantial financing and large-scale infrastructure projects, such as the Peruvian port of Chancay, inaugurated in 2024, with 60% ownership held by the Chinese company Cosco.
Military Implications of Chinese Infrastructure
While ports and highways may seem benign, concerns are growing about the potential military applications of China’s investments. Le Monde reports on a base in Neuquén, Patagonia, managed by the Chinese National Space Administration (CNSA), ostensibly for deep space exploration related to China’s lunar mission. A 2009 report from the Universidad de Navarra details how Beijing initiated discussions with Argentina regarding space cooperation. The base now features two massive radio antennas, each weighing 450 tons and as tall as a 12-story building, which could potentially be used for military purposes, including intercepting communications across South America. Secret clauses regarding the base’s use have been confirmed by the Argentine government, with the antennas officially operated by the China Launch and Tracking Control General (CLTC), which is linked to the People’s Liberation Army.
China as an Alternative to Washington
China is presenting itself as an alternative to perceived US arrogance, continuing to pursue business opportunities in South America, selling products and services – from electric vehicles to 5G technology provided by Huawei – and subtly signaling that there is an alternative to Washington and its policies. Even with Argentina’s current president, Javier Milei, aligning with Trump against “communists” (referring to China), Brazil’s Lula has recently affirmed that Brazil “does not accept attempts at colonization” from any nation, including the United States.
FAQ
- What is the Monroe Doctrine? The Monroe Doctrine is a US foreign policy principle that opposes European colonialism in the Americas.
- What role did the WTO play in China’s expansion? China’s entry into the WTO facilitated access to financial resources for Latin American countries through the Chinese National Bank.
- What are the concerns regarding the base in Neuquén? There are concerns that the base, ostensibly for space exploration, could be used for military purposes, such as intercepting communications.
- How is Brazil responding to the US-China rivalry? Brazil’s President Lula has stated that his country does not accept attempts at colonization from any nation.
Pro Tip: Keep an eye on infrastructure projects in South America. They are key indicators of shifting geopolitical influence.
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