Trump's 'America First' protectionist policy is putting China ahead in the US' backyard- South America

China is likely to find new opportunities to deepen economic ties with Latin America as the incoming Trump administration shifts toward protectionist policies, experts said at the APEC CEO Summit held in Peru’s capital this week.

Key areas for potential collaboration include mining, manufacturing, renewable energy, agriculture, digitalisation, and artificial intelligence, according to experts cited by Chinese business outlet Caixin.

China to reap benefits of ‘America First’ in South America

President-elect Donald Trump’s “America First” approach marks a turn inward for the US, potentially allowing China to strengthen its foothold in South America.

China’s rising presence across Latin America points to a broader shift, as countries like Brazil, Chile, and Argentina increasingly rely on Beijing as a major trade partner, supplying it with corn, copper, soy, beef, and lithium, a key component for batteries.

This trend has diminished Washington’s political influence in the region, which expanded under Trump’s first term and continued under President Biden.

China in the US’ backyard

“This is the United States’ backyard,” Reuters quoted Li Xing, a professor at the Guangdong Institute for International Strategies, as saying. He noted that China’s approach offsets US influence in the Indo-Pacific region without escalating tensions by establishing military bases. “Economic ties come first,” he said.

China’s trade relationship with Peru illustrates the shift.

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According to UN Comtrade data, Beijing’s trade advantage over the US with Peru grew to $16.3 billion last year, a stark contrast to a decade ago when Washington was the dominant partner.

China became Peru’s top trade partner in 2015, expanding its lead during Trump’s presidency from 2017-2021 and continuing under Biden.

“China has entered the region aggressively, is adapting quickly, and is committed to staying for the long term,” said Eric Farnsworth, a former US State Department official now at the Council of the Americas and Americas Society. “Without a significant change in US regional economic policy, the region will continue leaning toward Chinese interests."

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With inputs from agencies