BOGOTÁ - China is shifting its investment strategy in Latin America and the Caribbean: concretely, Foreign Direct Investment (FDI) into large-scale infrastructure projects -- such as canals and railroads that were emblematic of the mid-2000s Belt and Road Initiative -- has been reduced and redirected in recent years to smaller, yet more numerous, investments into high technology, including artificial intelligence (AI), 5G connectivity and electric vehicles.
While the switch aligns broadly with China's latest economic growth goals (which focus mostly on innovation and sustainability), the country's interest in Latin America's critical infrastructure, including telecommunications, data centers, industrial internet, and ultra-high-voltage electricity transmission, continue to raise security concerns in Washington.
