China in Latin America: April 2025
Currency Swap: Argentina renewed a $5 billion currency swap line with China, despite comments by U.S. Special Envoy for Latin America Mauricio Claver-Carone that the agreement was “extortionate.” Claver-Carone called on Argentina to end the long-standing swap agreement, originally signed with China in 2009. China defended the currency swap as playing a stabilizing role in the Argentine economy. Chinese Foreign Ministry Spokesman Lin Jian urged the United States to “make more tangible contributions to the development of Latin American and Caribbean countries, rather than make an effort to drive a wedge.” The currency swap is Argentina’s largest source of foreign reserves and China’s biggest yuan swap line in the world.
Panama Canal Tensions: Panama’s comptroller authority found irregularities in the contract extension granted to Hong Kong company CK Hutchison in 2021 to operate two ports in the Panama Canal. The audit revealed payment defaults and accounting miscalculations, alleging that CK Hutchison failed to pay $300 million in fees. Panamanian Comptroller-General Anel Flores announced plans to file criminal charges.
During a visit to Panama City, Defense Secretary Pete Hegseth said the United States was determined to eliminate China’s “malign influence” over the Panama Canal. The Chinese Embassy in Panama accused the United States of using blackmail to further its own interests and attempting to sabotage China-Panama cooperation.
Trade: China is shifting purchases of agricultural commodities to Latin America amid its escalating trade war with the United States. Chinese soybean crushers bought an unusually large quantity of Brazilian soybeans in April. Upwards of 40 cargoes of Brazilian soybeans totaling 2.4 million tons are set to arrive in China in May, June, and July. Bloomberg reported that Argentina, Paraguay, and Uruguay will also benefit from U.S.-China trade tensions, especially as China looks to find alternate cereal suppliers.
Mexico imposed tariffs on Chinese steel nails in a move intended to bolster its domestic industry. An antidumping investigation by the Mexican Secretariat of Economy found that steel nails had been imported from China at prices below fair market conditions.
Colombian authorities seized forty-nine tons of illicitly extracted tin and coltan that was headed to China. Valued at $1.2 million, the seizure of coltan, a mineral used in the making of smartphones and other electronics, was one of the biggest in Colombia in recent years.
Brazilian President Luiz Inácio Lula da Silva and Chilean President Gabriel Boric said they did not want to pick sides in a U.S.-China trade war and pointed to the need to strengthen intraregional ties.
Diplomacy: At a recent summit of the Community of Latin American and Caribbean States (CELAC) in Honduras, a Chinese delegation held bilateral meetings with representatives from fifteen countries. Chinese President Xi Jinping underscored CELAC’s role in maintaining regional stability and affirmed China’s willingness to partner with Latin American countries.
Colombian President Gustavo Petro met with Chinese ambassador to Colombia Zhu Jingyang to prepare for the upcoming China-CELAC forum, which will be held in Beijing in May. Petro assumed the pro tempore presidency of CELAC on April 2. The China-CELAC forum will prioritize discussion of renewable energy and trade integration, according to Colombian Foreign Minister Laura Sarabia. Business leaders in Latin America have expressed their concern over the bloc’s meeting with China amid escalating U.S.-China trade tensions.
Venezuelan Vice President Delcy Rodríguez met with Chinese Vice President Han Zheng during a visit to Bejing to review the status of over 600 bilateral agreements and strengthen trade relations.
Infrastructure: A Chinese delegation of eleven officials from China State Railway Group and the Chinese transport ministry visited Brazil to discuss infrastructure projects. During the seven-day trip, the delegation explored the idea of a potential railway to connect Brazil to Peru’s Chancay megaport. If it comes online, the project would allow Brazil to bypass Atlantic shipping routes, lowering transit times and logistics costs for Brazilian exports.
Peru’s National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI) announced that rates for port services at Chancay must be regulated, citing a lack of competitive market conditions. Chinese company Cosco Shipping, which operates the megaport, said it could respond with legal action. INDECOPI seeks to apply rates similar to those at Peru’s Port of Callao, weighing factors such as the type of service, destination of shipment, and weight of cargo.
China’s Guangzhou port opened a direct route to Chancay, which will reach Peru in around 30 days and reduce logistics cost by 20%.
Investments: Brazilian Mines and Energy Minister Alexandre Silveira traveled to China to seek additional investment in the energy sector, with a focus on batteries, data centers, and electric mobility. Silveira met with executives from BYD, China General Nuclear Power Group, and Huawei during his visit.
The Chilean government invoked an anti-terrorism law in response to an arson attack on a Chinese-owned hydroelectric project that injured two guards and damaged fifty vehicles and pieces of machinery. The Chinese Embassy said the incident undermines companies’ confidence in Chile.
Uruguay and China launched a joint bio-nano-pharma laboratory to advance scientific research. The initiative builds on an existing partnership between Uruguay’s University of the Republic and China’s Qingdao University.
Nicaraguan President Daniel Ortega met with Huawei’s president for Latin America and affirmed Nicaragua’s intent to expand cooperation with Chinese companies.
