The People’s Republic of China has become a major investor, lender and actor across the energy sector in Latin America and the Caribbean. Indeed, loans and investments from China have financed an impressive array of projects in infrastructure, energy and mining.
With more than $58 billion invested between 2000 and 2019, China has clearly staked a claim in Latin America’s energy sector. In 2020, Chinese M&A deals in Latin America and the Caribbean energy reached $7.7 billion, according to Bloomberg, or 25% of Chinese acquisitions worldwide.
With the contours of the global energy transition and increased attention on reducing emissions and climate action spurring huge growth in renewable energy, China has flexed its muscles in that segment of the global energy sector and in Latin America and the Caribbean. China’s growing presence in Latin America presents challenges to the United States, which the new Biden administration must address. A new administration together with Democratic majorities in both houses of Congress provides an opportune moment to reset. Indeed, the new administration has an opportunity to counter China and strengthen US-Latin America relations by encouraging private investment, particularly in mining, clean energy and infrastructure projects.
Cecilia Aguillon, Energy Transition Initiative Director and Jeremy Martin, Vice President, Energy & Sustainability at the Institute of the Americas present an overview of the latest Energy & Sustainability program’s report followed by a discussion panel with Matt Ferchen, Head of Global China Research at Mercator Institute for China Studies and Michael Davidson, Assistant Professor at the School of Global Policy and Strategy at UCSD.