China has reaffirmed its commitment to being a “trustworthy” ally and partner to Latin America, as Foreign Minister Wang Yi emphasized during a meeting with Bolivia’s Foreign Minister Celinda Sosa at the United Nations. The statement underscores Beijing’s ongoing efforts to strengthen its presence in a region traditionally influenced by the United States.
“Latin America belongs to its people and is not any nation’s ‘backyard,’” Wang stated, according to a report from the Chinese Foreign Ministry. He further highlighted China’s intention to enhance its strategic partnership with Bolivia.
Bolivia, which has maintained diplomatic relations with China since 1985, is one of several South American nations that have deepened economic ties with Beijing through investment and financial agreements. According to World Bank data, Bolivia owes China over $1.7 billion, while Chinese enterprises have invested an additional $6 billion, primarily in the country’s metals, energy, and transportation sectors. In contrast, U.S. foreign direct investment in Bolivia stands at approximately $430 million, mainly in oil, gas, and manufacturing.
As the geopolitical landscape shifts, both the United States and China are vying for influence in Latin America. With U.S. President Donald Trump embarking on his second term, tensions over Chinese investment in infrastructure and energy projects are intensifying. Trump wasted no time in challenging Panama’s growing ties with China, dispatching Secretary of State Marco Rubio to pressure the country into limiting Beijing’s role in the Panama Canal. In response, Panamanian President Jose Raul Mulino announced that his nation would not renew its participation in China’s Belt and Road Initiative, a move that disappointed Beijing.
Trump has also refused to rule out military action regarding the Panama Canal, signaling a tough stance on Chinese involvement in the region. Meanwhile, Wang Yi reassured Latin American nations of China’s support in safeguarding their sovereignty, independence, and national dignity.
China also extended congratulations to Bolivia for joining the BRICS alliance—a bloc originally formed by Brazil, Russia, India, and China to counter Western economic dominance. The group has since expanded to include South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE.
Trump has repeatedly warned BRICS nations against challenging the supremacy of the U.S. dollar, even threatening 100% tariffs on members attempting to introduce an alternative currency. Facing economic risks, Brazil, which holds the BRICS presidency, decided to suspend its plans for a common currency to avoid provoking a U.S. backlash.
Despite China’s growing economic influence in Latin America, Trump remains firm on trade policies that put pressure on regional governments. He has issued warnings to Mexico and Colombia, demanding stronger measures to curb illegal immigration into the U.S. Mexico has responded by deploying 10,000 National Guard troops to its northern border, while Colombia reversed a decision to block U.S. military flights carrying deported migrants, thus averting a potential trade conflict with its largest export market.
As the U.S. and China continue their strategic maneuvering, Latin American nations find themselves navigating a complex landscape, balancing economic opportunities with diplomatic pressures from the world’s two largest economies.
