The Briefing China extends billions in credit to Latin America at Beijing summit
May 13, 2025
Andrew Thompson, a Latin America specialist and contributor on regional news, discusses China's recent extension of over €8.2 billion in credit to various Latin American nations. He highlights the shift in economic ties fueled by lower tariffs and enhanced trade policies, alongside the geopolitical implications of this pivot towards China. The conversation also contrasts U.S. and Chinese influence in the region, illustrating the challenging balancing act Latin America faces as it navigates these powerful relationships.
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China Offers Stable Trade to Latin America
- Latin American countries gain lower tariffs and more trade stability from China compared to the US.
- China's promise of no bullying loans appeals amid the US's unpredictable trade policies.
China Pushes De-Dollarization
- China lends $9.2 billion to Latin America in yuan to promote de-dollarization.
- This shift away from the US dollar will be gradual and is part of a broader BRICS policy.
China Closes Trade Gap with US
- China's trade with Latin America exceeded $500 billion last year, approaching the US at $700 billion.
- The US remains dominant but China's faster growth signals shifting trade dynamics in the region.