President Biden’s first visit to South America highlights a belated effort to reengage with the region amid China’s growing presence. His stops at the APEC summit in Peru and the G20 meeting in Brazil come as Beijing strengthens its foothold through massive infrastructure projects like Peru’s new megaport. This late diplomatic push underscores the challenges the U.S. faces in countering China’s rising influence.
Latin America’s vast resources, including lithium, oil, and copper, present immense economic opportunities. However, U.S. companies often hesitate to invest in critical projects, leaving a gap that China fills with strategic investments in technology, minerals, and telecommunications. Without stronger U.S. engagement, these sectors may continue leaning toward Beijing.
Efforts like Biden’s Americas Partnership for Economic Prosperity (APEP) and Trump’s América Crece aim to boost U.S. ties, but their long-term impact depends on consistent follow-through across administrations. The lack of continuity has limited the effectiveness of such programs in fostering sustained partnerships.
A critical review of U.S. trade agreements in the region is essential. Despite having agreements with many Latin American countries, their full potential remains untapped. U.S. businesses need stronger incentives and frameworks to deepen commercial ties and counter China’s expansive economic strategies.
Finally, alignment with regional partners on shared priorities like security and economic development is vital. Strategic messaging and culturally attuned diplomacy, such as appointing Spanish-speaking diplomats, could enhance U.S. influence. However, prioritizing immigration enforcement alone risks alienating allies, further enabling China to expand its reach in the hemisphere.