China Expanding, Diversifying Footprint in Latin American Energy
While China has been embroiled in a trade dispute with the United States, its presence in the energy sector in Latin America has continued to grow, impacting the shape and direction of the region’s energy markets.
According to the report, “China Stakes its Claim in Latin American Energy,” released by think tank Institute of the Americas, China committed almost $60 billion to Latin America’s energy sector between 2000 and 2019.
Of the total, 83% went to projects in oil and natural gas, 12.8% to hydroelectric power and 2.2% to solar.
“Chinese investments and loans to Latin American countries are likely to continue growing, regardless of greater cooperation by countries in the region with the United States,” the report’s authors said. “Even before the 2020 economic downturn, countries’ budgetary needs were too great to obviate Chinese fiscal underwriting.”