China Drops $35B Bet on Latin America—Geopolitical Chess or Debt-Trap Diplomacy?

Beijing’s latest power play sends shockwaves through Western capitals. The $35 billion injection—equal to El Salvador’s entire GDP—marks China’s boldest move yet in its decade-long Latin American expansion.

Infrastructure or influence? Analysts split on whether this represents genuine South-South cooperation or just dollar-denominated soft power. Either way, local governments are lining up like crypto traders at an ICO launch.

Wall Street shrugs—after all, it’s just 1.4% of China’s foreign reserves. But that kind of money buys a lot of lithium mines... and UN voting blocs.

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.

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