President Biden’s upcoming South America visit, potentially his last foreign diplomacy trip, highlights U.S. efforts to maintain influence as China’s presence grows. He will attend the Asia-Pacific Economic Cooperation summit in Lima, Peru, and later visit Brazil for the Group of 20 summit, marking a historic trip to the Amazon rainforest.
This diplomatic push occurs amidst shifting U.S. priorities in the region, from political stability to curbing illegal immigration and narcotics. Meanwhile, China has stepped in, forging trade deals and investments like Peru’s Chancay port and Argentine satellite projects, filling gaps left by the U.S.
South American nations have leaned on China as U.S. trade agreements faltered. Uruguay and Ecuador, for instance, turned to Beijing after failed U.S. negotiations. While the U.S. retains more trade agreements, China’s strategic investments expand its foothold.
The U.S. has made counter-moves, such as investing $30 million in a Brazilian mineral project. However, the scope of its investments is limited, with some Latin American countries deemed too wealthy to qualify for aid under current mandates.
Biden’s discussions with Chinese President Xi Jinping in Peru will focus on military communications, climate change, cybersecurity, and Taiwan. Their meeting underscores the tense balance of cooperation and rivalry between the world’s two largest economies.