Latin America cannot be seen as 'passive actor' in China-US rivalry, experts say

Latin America must take a more active position in the rivalry between the US and China and avoid being seen as a “passive actor” whose only role is an investment destination or source of key commodities, according to foreign relations experts. 

“The most recommendable road ahead is smart autonomy. It's not about taking a neutral stance in the face of such tensions, because on certain issues countries like Chile could be more in line with the US and in other cases more in line with China,” former Chilean foreign minister Heraldo Muñoz said in a webinar.

He pointed out that China is the biggest trading partner for many Latin American countries but the US is also the main direct investor in the same economies, which puts national governments in a quandary when it comes to the friction between Beijing and Washington regarding human rights, democracy and economic policy. 

Muñoz also lamented that the US does not currently seem to have a planned policy for the region, while China continues to consolidate its influence in Latin America. 

“I believe that the United States has an ‘attitude’ towards Mexico and Central America, but I don’t believe that there’s a policy towards Latin America,” he said, adding that Beijing has made moves such as providing COVID-19 vaccines to improve ties, while Washington has remained more distanced. 

A similar opinion was expressed by Benedicte Bull, professor of political science at the University of Oslo, who said that “the US comes with very little to offer.”

With regard to what Latin America's stance should be, Bull said that an ideal scenario would involve a coordinated regional position, but admitted that this will not happen anytime soon, citing Brazilian President Luiz Inacio Lula da Silva’s recent trip to China as an example. 

“I didn’t hear Lula speak about Latin America. Not even once,” she said.

Instead, she advocates for a position in which Latin American governments combine pragmatism and protecting their own interests, with a response that is based on upholding democracy and the rule of law. 

Bull and Muñoz made these comments during a webinar hosted by the Chilean Pacific Foundation and focused on the effects of the rift between Washington and Beijing in Latin America.

Over recent years, the Chinese have consolidated their position in the region by increasing trade links with Latin American countries, as well as investing in key industries such as energy, telecommunications, mining and infrastructure.

Some Latin American countries have also joined Beijing’s Belt and Road initiative, as well as joining the China-sponsored Asian Infrastructure Investment Bank (AIIB). 

However, this has also raised concerns regarding transparency and respect for democratic standards due to China’s poor record in this regard. 

On this front, Bull warned that many of China’s moves in the region have lacked transparency and that Latin American critics have been sidelined. 

At the same time, she called out Washington’s “reactive protectionism” for its own industries, such as last year’s inflation reduction act and its extensive use of sanctions to achieve political objectives, which she claimed leads many in the region to see the US as a threat rather than a source of opportunities.