China Stakes Its Claim in Latin American Energy:

Conclusion Chinese investments and loans to LAC are likely to continue growing, regardless of greater cooperation by countries in the region with the U. S. Even before the 2020 economic downturn, countries’ budgetary needs were too great to obviate Chinese fiscal underwriting. Chinese energy investments in LAC fell sharply between 2017-2020, except in renewables, electric power transmission and lithium mining. This was not because Beijing ran out of money. More likely, China is searching more carefully for sound investment projects, and deciding on which countries are uncomfortable with major Chinese investments in sensitive sectors, as well as with its poor record on environmental and labor issues. For example, recent Chinese investments in lithium mining in Mexico and power transmission systems in Chile have generated legislative efforts aimed at preventing foreigners and private companies (in this case, China) from controlling essential sectors. Beijing could also be waiting to see what role the Biden government adopts in the region. Economic recovery in LAC will be of foremost importance as the region emerges from the grave damage caused by COVID-19. Indeed, LAC will require China, the United States and the EU to deepen their

trade, investment and economic activities to boost regional recovery.

As it has done for many years, China will remain a key market for LAC commodities and will provide access to ample credit, especially for countries with well- managed economies. With economic recovery in China already underway, imports of raw materials, agricultural products and strategic minerals from LAC will grow. Moreover, Chinese exports of green technologies are likely to expand as LAC countries move to decarbonize and use clean energy as an economic recovery tool. China’s ability to influence domestic policies and politics remains limited to a few vulnerable countries. However, even vulnerability can be overcome by enacting domestic policy changes. Consequently, the United States has the opportunity to emphasize policy domains where it continues to possess an edge over China. These include: defending democratic institutions, where citizens have the power to vote out bad policies; fighting against climate change; encouraging human rights and battling corruption. Another strong point is our longstanding history of helping our neighbors.

Some LAC countries are already insisting on environmental protection and are strengthening their

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