Overall situation of BRI in LatAm - how many joined?
20 LatAm and Carribean countries
why is Chinese investment through the BRI effective for LatAm countries?
Chinese offers often follow little political or enviornmental conditions -> useful for countries that want to develop quickly
concerns of Chinese presence through BRI in LatAm
- debt dependency (overreliance)
- growing control over infrastructure (eg. ports, energy sources)
- ports could have dual use potential (could support later military operations in like Djibouti)
- challenges for US influence in region (reshaping LatAm geopolitical landscape)
- enviornmental challenges
-> marine ecosystems disruptions
-> displacement of fishing communities
what does China use the BRI for in LatAm?
- increase foreign influence
- getting access to raw materials
- strengthen diplomatic support (more countries switching recognition from Taiwan to China)
- soft power diplomacy
-> compaines like Huawei gaining greater access to raw materials (in example)
-> cultural exchange
BRI port in Peru
Port of Chancay
- active participant of BRI
- part of string of pearls
- openend 2024
why is the port of Chancay valuable for China?
- reducing shipping times across the pacific
- bypassing Panama Canal
how much did COSCO Shipping invest into port of Chancay
$3.5bn
- Chinese State owned
- developed in partnership with Peru Volcan Mining Company
projected value of Port of Chancay
- $4.5bn in annual revenue
- created over 8k jobs
Natural resources that the Port of Chancay provides
- copper, lithium, agricultural products
= vital for Chinas industrial and technological growth - Peru becomes vital trading partner for China
- economic foothold into LatAm
Current technology of port
- fully modernised
- highly automated facitilities
- much of advanced technology is provided by Chinese technological companies like Huawei (reinforcing growing influence into LatAm trade logistics)
Chinese power in terminals handling of global container trade
27%
value of Port of Chancay for Peru
- can modernise infrastructure
- enhancing role in global trade
- creating thousands of jobs
- benefitting local businesses
Panama and BRI
- joined in 2017, chose not to renew membership + reviewed contract in 2025
-> left after meeting with Marco Rubio, US Secretary of State during his first official visit as secretary
-> around 50% of projects initiated after Panama joined BRI have been discountinued / suspended
Value of Panama for China in BRI
- access to Panama Canal = key logistics hub
- critical for global trading /shipping routes
- 21% of cargo shippning to or from China went through canal
Chinese influence in Panama
- Chinese companies have invested in ports, logistics and energy infrastructure around canal
- ports on either end of Canal (biggest ones), operate by a subsidary of Hong Kong based Hutchison Holdings since 1997
-> independent company
-> 2020 Chinese national security law allows China to influence over Hong-Kong based companies in event of conflict
-> Chairman is member of national committe of the CPPCC (Chinese Peoples Political Consultative Conference) - invested $1.4bn in Panama in 2023 (4x more since start of BRI in 2017)
US in Panama/BRI
- Chinese access to Panama Canal due to BRI led US to question neutrality of canal
-> sparked Trumps decision to “take back” Panama Canal
Marco Rubio Panama/BRI
- Rubio stated concerns about potential influence of CCP influence in Panama through operations of ports and access to Canal
- threatening, saying US would “impose necessary measures” on Panama if didnt reduce Chinese involvement in canal
Chinese reactions to Rubio/Panama position
- stating that US is using “pressure and coercion to smear and undermine” BRI
- saying US is attacking
- reflecting “hegemonic nature”
Corridor of Brazil
- proposed railway corridor to connect port of Chancay in Peru (Pacific) to ports in Brazil in Bahia (Atlantic)
impacts for Brazil of corridor of Brazil
- economic opportunities (facilitating export of Brazilian soy, iron, minerals)
- improves internal connectivity
- access to Chinese markets = gain from Chinese investments through easier transportation of goods
- concerns of enviornmental and indeginous rights if track goes through Amazon (creates local tensions)
impacts for China of corridor of Brazil
- enhances Chinas logistical domination-> expanding sphere of influence in LatAm
- secures direct access of raw minerals
- reducing dependence on US- influenced chokepoints in Panama Canal (more regional influence through higher access of ports and trade corridors)
- complements control of Chancay = expanding BRI transport network
-> part of broader “Transcontinental Railway” vision
-> SA becomes landbridge for China-Latin America trade
