China, as the leader in investment in the mining sector of Latin America, has surpassed the United States by allocating $10.05 billion from 2014 to September 2023. During the same period, the United States invested $8.38 billion in this sector. These changes in investments particularly emerged after the launch of Joe Biden's "friendship" initiative in 2022 to stimulate the production of critical minerals such as lithium and copper.
Investments by China and the United States
In 2014, China allocated $7 billion to the development of the Las Bambas copper mine in Peru. This mine, which is one of the largest copper mines in the world, has 62.5 percent of its shares owned by Chinese state-owned companies. According to Enrique Dussel, director of the China-Mexico Studies Center at the National Autonomous University of Mexico, China has become the largest player in the flow of foreign direct investment to Latin America in the 21st century.
Read more: The U.S. government has approved new fuel consumption standards for vehicles
From 2005 to 2024, companies have announced 1,152 mining and metal projects in Latin America and the Caribbean with a total investment of $230.07 billion. Critical minerals account for 23.5 percent of the projects and 41.6 percent of the total project value.
Attention to Mineral Resources
Argentina accounted for 8.4 percent or 138,116 tons of global lithium production in 2025. Chile with 23.1 percent, Peru with 11.6 percent, and Mexico with 2.9 percent are positioned in copper production in the same year. Over 80 percent of the investments by Chinese state-owned companies in Latin America and the Caribbean between 2000 and 2023 have been concentrated in the mining and energy sectors.
China is also rapidly increasing its investments in Brazil. Companies such as CMOC Group Ltd, Baiyin Nonferrous Group Co. Ltd, and China Nonferrous Trade Co. Ltd have invested a total of $1.8 billion in copper, gold, and tin projects. In 2023, trade between China and Mercosur reached $190 billion, which is 18 times more than in 2003.
In light of these changes, the United States is trying to counter China's influence with new policies that include reforms in foreign aid and increased allocation of development budgets to this region. These changes reflect the growing importance of Latin America's mineral resources in global policies and strategies.
Read more: Decrease in steel production in China and increase in inventories ahead of national holidays · Decrease in rebar prices in China to below CNY 3,100 per ton
