Latin America-China ties will diversify and deepen

Significance

The relationship is diversifying into new sectors, although the exchange of LAC commodities for Chinese manufactures remains at the centre. The relationship will continue to deepen, but doubts remain about China’s growth prospects and tensions between Beijing and Washington.

Impacts

• The United States will likely increase pressure on LAC countries to restrict China’s entry, but will struggle to compete effectively.
• South America is particularly vulnerable to a Chinese slowdown linked to real estate sector woes and China's strict 'zero-COVID' policy.
• Further 5G auctions will take place in 2022 and 2023, in which Huawei will be highly competitive.