China to invest $35B in Latin America

China has pledged to invest up to $35B in Colombia and Latin American infrastructure projects if the United States follows through with its threat of blocking funding for Chinese firms

The growing rivalry between the U.S. and China has begun to affect economies in Latin America. The region could potentially land a $35B investment from China in response to a threat from the U.S

China to invest $35B in Latin America

China has declared that it is prepared to invest as much as $35B into infrastructure projects in Colombia and the Latin American region

Speaking to reporters in Bogotá on Tuesday, Zhu Jingyang, China’s ambassador to Colombia, stated that China, along with the BRICS New Development Bank (NDB), is prepared and ready to fund more than 100 infrastructure ventures across Latin America

“China and other friendly countries have the capacity to finance,” Zhu emphasized. His statement clarifies that Beijing is ready to step in should the U.S. carry through with its threat to block loans from multilateral lenders to Chinese state-owned companies operating in Colombia.

The announcement of China’s potential $35B investment comes after Colombian President Gustavo Petro’s recent state visit to China, during which the Andean nation formally joined Beijing’s Belt and Road Initiative (BRI)

Citing concerns about security, transparency, and debt diplomacy, the U.S. has attempted severally to isolate China from global development finance institutions. The Trump administration has openly stated its intent to block loans to Chinese firms from entities such as the Inter-American Development Bank (IDB) and other multilateral lenders.

In response, China is positioning itself as a much-needed partner at a time when Latin American nations are seeking to modernize their transportation, energy, and digital infrastructure

The contention about the Belt and Road Initiative

The Belt and Road Initiative is a massive global infrastructure and investment program aimed at deepening China’s economic influence, and Colombia’s entrance into the fold means the country is changing its international alliances.

Colombia has now joined more than 20 countries in the region that have signed cooperation agreements under the BRI. It is expected that the partnership will accelerate infrastructure development in key sectors such as railroads, highways, ports, and renewable energy

According to Colombian officials, the agreements signed during Petro’s visit include several priority areas, such as improving transport connectivity between rural and urban zones, developing smart cities, and enhancing digital infrastructure through 5G and cloud computing partnerships.

While the specific projects to be funded under the $35B pledge have not yet been detailed, it can be expected that China’s support would cover a wide range.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now