China in Latin America: December 2024

Diplomacy: China’s Ministry of Foreign Affairs reaffirmed Panama’s sovereignty over the Panama Canal, countering U.S. President-elect Donald Trump’s threats to reclaim the waterway. Trump falsely claimed that Chinese soldiers operate the canal and criticized its fees as “exorbitant.” 

Venezuelan President Nicolás Maduro hosted a conference for Chinese investors and Vice President Delcy Rodríguez traveled to China, meeting with Chinese Vice President Han Zheng, the mayor of Shenzhen, and technology sector representatives. 

Paraguayan authorities expelled a Chinese diplomat after he urged Paraguayan lawmakers to recognize China over Taiwan, according to Reuters. China’s Ministry of Foreign Affairs called the accusations “completely unreasonable and unfounded,” and said they “severely violate international practices.” 

Trade: China launched an eight-month probe into beef imports. Any protectionist measures that come out of the investigation could hit major exporters like Brazil and Argentina. Brazil supplies nearly half of China’s beef imports and saw shares of its top meat producers, including JBS, Minerva, and Marfrig, dip after the news. 

The first direct shipment of Peruvian goods from the newly inaugurated port of Chancay arrived in Shanghai, according to the Global Times. 

Mexican President Claudia Sheinbaum’s administration increased tariffs on finished clothing products to 35 percent and on textile goods to 15 percent for countries without a free trade agreement with Mexico, including China. Sheinbaum and Economy Minister Marcelo Ebrard described the measure as a way to protect Mexico’s domestic textile industry, but media outlets such as El País suggested that it is also a response to pressure from U.S. President-elect Donald Trump. Trump has raised concerns over low-cost Chinese goods entering the U.S. market via Mexico. El Financiero wrote that the tariffs—in effect until April 2026—could raise the prices of Chinese textiles, which account for over a third of Mexico’s textile imports. 

Mexico also added a 19 percent tariff on goods arriving via courier services from countries without a trade agreement with Mexico, including China. Reforma and Reuters suggested that the policy targets Chinese ecommerce platforms such as Shein and Temu. 

Chilean Foreign Minister Alberto van Klaveren visited China, meeting with his counterpart, Wang Yi, and signing trade protocols to streamline fruit and meat exports to China. The trip coincided with the ninth Chile Week China, a trade promotion initiative by the Chilean government. China is Chile’s largest bilateral trade partner and Chile joined China’s Belt and Road Initiative in 2018. 

Forced Labor, Legal Battles: Brazilian labor authorities found over one hundred workers living in “slavery-like conditions” at a construction site for BYD’s factory in Bahía state. Reuters and the BBC reported that workers had their passports and salaries withheld and could not leave their accommodations without permission. Dozens shared one bathroom, worked long hours—sometimes seven days a week—and slept on beds without mattresses. Brazil has since halted construction at the site and stopped issuing temporary work visas for BYD. 

BYD initially said that it cut ties with Jinjiang Group, the contractor that hired the workers, but both companies have since denied the claims, calling them an attempt to “smear” China and Chinese brands. The two companies are scheduled to meet with Brazilian prosecutors on January 7. China’s Ministry of Foreign Affairs said that it is maintaining communication with Brazilian authorities and that it requires Chinese companies to comply with local laws. The plant—BYD’s first outside Asia—was set to start producing electric vehicles (EVs) by March 2025. 

U.S. Customs and Border Protection barred aluminum imports from Kingtom Aluminio, a Chinese-owned company in the Dominican Republic, citing evidence of forced labor including withheld wages, physical and sexual violence, and excessive overtime. Sanctions aside, Diario Libre reported that the manufacturer continues operating in the Dominican Republic. 

Venezuela’s Supreme Tribunal of Justice fined TikTok $10 million over three deaths and dozens of injuries related to viral challenges that President Nicolás Maduro said involved “dangerous” chemicals. 

Infrastructure: 

Energy 

Colombia’s National Hydrocarbons Agency authorized eight companies, including Chinese state-owned PowerChina, to participate in Colombia’s first competitive bidding process for offshore wind projects. The approval allows PowerChina to propose projects and, if successful in a 2025 auction, to pursue thirty-year leases. The finance minister at the time, Ricardo Bonilla, alleged that President Gustavo Petro’s stepson, Nicolás Alcocer, and the head of Colombia’s state oil company, Ricardo Roa, sought to favor PowerChina in hydroelectric contracts. Bonilla resigned shortly after filing a complaint with the attorney general’s office, though Petro attributed his resignation to an unrelated corruption probe. 

The U.S. Export-Import Bank (EXIM) approved a $526 million loan to Guyana for a natural gas-based electricity project led by U.S. company Lindsayca and Puerto Rican company CH4 Systems, with contributions from ExxonMobil. The loan is part of EXIM’s China and Transformational Exports Program, aimed at supporting U.S. companies, like Lindsayca and CH4 Systems, that compete directly with Chinese firms. 

Transportation 

Guyana and Suriname chose China Road and Bridge Corporation to build a $236 million bridge to link the two countries across the Corentyne River. According to Bloomberg, the two nations have asked the Chinese government to finance the project, which will take some three years to build. China Road and Bridge Corporation beat out Dutch company Ballast Nedam for the contract. 

China Harbour Engineering Company (CHEC), a subsidiary of state-owned China Communications Construction Company, submitted a prefeasibility proposal to extend Bogotá Metro Line 1 through a public-private partnership with Empresa Metro de Bogotá (EMB). The proposed extension would add 3 stations to the original 16, serving an additional 140,000 daily users. EMB has three months to review the proposal. If approved, the project will proceed with feasibility studies and open bidding for construction. CHEC controls 85 percent of the consortium that won a 2019 contract to build Line 1. Construction began in 2021 and the line is set to open by 2028. In 2023, the Line 1 project came under scrutiny over alleged $2.7 million bribery payments to Colombian politicians. 

Telecommunications 

The Costa Rican government sued Huawei Technologies Costa Rica, along with several current and former officials of the Costa Rican Electricity Institute, the state electricity and telecommunications provider. The criminal complaints allege that defendants engaged in crimes including fraud, bribery, and influence peddling in awarding thirty-four direct contracts and nine restricted invitations to Huawei between 2013 and 2022. Huawei denied the allegations and the Chinese Embassy in Costa Rica called them surprising, saying China supports its companies in defending their rights and interests and expects them to comply with local laws. The suit follows controversy surrounding an August 2023 presidential decree excluding Huawei from 5G contracts. 

Espionage, Cybersecurity: A joint U.S.-Costa Rica cybersecurity review revealed that China-based cybercriminal groups had infiltrated Costa Rica’s telecommunications and technology systems. 

Última Hora and ABC Color reported that Paraguayan officials are investigating alleged Chinese surveillance of Taiwan’s ambassador in Asunción. The Taiwanese Embassy reported a vehicle owned by Huawei Technologies Paraguay S.A. parked near the ambassador’s residence in October 2024. 

Space, Tourism, Travel: Brazil’s Chamber of Deputies and Senate ratified an agreement with China for the construction and launch of the CBERS-6 satellite, the sixth in the China-Brazil Earth Resources Satellite series. Brazilian President Luiz Inácio Lula da Silva signed the agreement in April 2023. It now moves to the final step of promulgation, a procedural formality, to take effect. 

China relaxed rules for visa-free travel, allowing stays of up to ten days for citizens of over fifty countries including Argentina, Brazil, Chile, and Mexico. 

Venezuela’s state airline, Conviasa, began operating flights to China.