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The Conversation
The Conversation
Jose Caballero, Senior Economist, IMD World Competitiveness Center, International Institute for Management Development (IMD)

With Trump in the White House, China and Latin America may try to forge an even deeper relationship

Within days of Donald Trump’s election win in November 2024, China’s president Xi Jinping was at a ceremony opening a deep-water port in Peru as part of a “diplomatic blitz” through Latin America.

Xi’s presence was a symbol of China’s rising influence in the region. The Chinese-funded (£2.8 billion) Chancay port represents an expansion of the relationship between China and Peru. The two countries also signed an agreement to expand free trade. Xi said this was the beginning of a maritime version of China’s belt and road initiative, to expand its worldwide trade and influence.

The first Trump administration opted for a confrontational stance towards many countries in the region, including Peru. This ultimately pushed it to deepen its alliance with China. Beijing saw the opportunity, through favourable trade deals and investments, to position itself as a more reliable and beneficial partner than Washington.

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