In the past year, China’s economic aid has increased by 71% in Latin America, and is expected to double its trade volume over the next decade. U.S. aid is beginning to dwindle in the region because better investments are popping up in other areas.
Interestingly, the United States is still number one in trade with Latin America, but not in all countries. I wonder how long it will be until the United States loses the title of “most aid provided” to the majority of the nations. Perhaps it will not though, because when the U.S. finds something they like in a country.. trust me, we do all we can to get it. Many of these countries have resources China needs, while the providing country needs capital, therefore, it is win/win for both parties.
In the interesting case of Venezuela, who’s economy is really hurting right now (arguably the worst in the world, you mean they’re doing worse than Greece?) China stepped in and loaned the country billions of dollars in return for oil; interesting move.
It will be interesting to watch how this influx of Chinese investment plays out, I wonder how the United States will respond. Time will tell.