China has reaffirmed its commitment to being a “trustworthy” friend and partner to Latin America, as Foreign Minister Wang Yi told his Bolivian counterpart during a meeting at the United Nations on Tuesday. According to a statement from China’s Foreign Ministry, Wang emphasized that Latin America belongs to its people and should not be considered any country’s “backyard.” Beijing continues to strengthen its presence in the region, which has traditionally been within the U.S. sphere of influence.
Wang expressed China’s desire to further enhance its strategic partnership with Bolivia, a country that established diplomatic relations with Beijing in 1985. Over the years, Bolivia has developed strong economic ties with China, particularly through debt and investment. The resource-rich nation currently owes China more than $1.7 billion, according to World Bank data. Meanwhile, Chinese companies have invested an additional $6 billion, mainly in Bolivia’s metals, energy, and transportation sectors, as reported by the American Enterprise Institute think tank.
By contrast, U.S. foreign direct investment in Bolivia stands at around $430 million, with most of it concentrated in the oil, gas, and manufacturing industries, according to data from the U.S. State Department. As Chinese investments in Latin America, particularly in infrastructure and energy, continue to grow, competition between the U.S. and China in the region is expected to intensify during U.S. President Donald Trump’s second term. In the past, Trump was quick to pressure Panama over its ties with China, sending Secretary of State Marco Rubio to warn the country about Chinese influence over the Panama Canal.
Following this, Panama’s President Jose Raul Mulino announced that his country would not renew its membership in Chinese President Xi Jinping’s Belt and Road Initiative, a move that displeased Beijing.
In the lead-up to Rubio’s visit, Trump even refused to rule out military action to regain control over the canal. Meanwhile, Wang reaffirmed China’s support for Latin American nations in safeguarding their sovereignty, independence, and national dignity. He also congratulated Bolivia on joining BRICS, a bloc originally formed by Brazil, Russia, India, and China as an alternative to the Western-led global order. The group has since expanded to include South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab Emirates.
Trump has repeatedly cautioned BRICS against challenging the dominance of the U.S. dollar, warning members that they could face a 100% tariff if they attempted to do so. However, Brazil, which currently holds the BRICS presidency, recently abandoned plans to push for a common currency, likely to avoid a potential backlash from Trump. Despite China being Brazil’s largest export market—purchasing nearly $70 billion more from the country than the U.S.—Brazil still values its $37 billion in exports to the American market and appears unwilling to jeopardize those trade relations.
As China works to deepen its economic and strategic influence in Latin America, Trump has not hesitated to use trade pressure to maintain U.S. dominance. He has threatened punitive trade measures against Mexico and Colombia unless they take stronger action to curb illegal immigration into the U.S. In response, Mexico deployed 10,000 National Guard members to its northern border to stem the flow of migrants and drugs. Similarly, Colombian President Gustavo Petro reversed a decision to block U.S. military planes carrying deported migrants, preventing a trade conflict with the country’s largest export market.
