China’s big chess move against the U.S.: Latin America

GREAT_WALL

Source: CNN Money

China is making friends right under America’s nose.

Latin America is China’s latest business buddy. Chinese banks increased investments in Latin America by 71% last year, and the country plans to double its trade volume with the Central and South American region over the next decade.

This comes as U.S. power in the Americas is starting to erode. U.S. cash is actually fleeing the region as investors see better deals at home or elsewhere.

China doesn’t appear as worried about the short-term.

“What we’re looking at is not simply an economic play. It’s an economic play that also has political and strategic undertones,” says Ilan Berman, vice president of the American Foreign Policy Council in Washington.

Outside of economic ties, Berman points out that China has helped fund Argentina’s nuclear power plant, launched Bolivia’s first satellite and is rumored to be helping Venezuela start its own drone program.

But for now, the relationship is mostly economic.

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