The View | Venezuela and Panama aren’t the whole story of China in Latin America
South China Morning Post
by Winston MokFebruary 24, 2026
AI-Generated Deep Dive Summary
China’s economic ties with Latin America remain robust despite recent challenges in countries like Venezuela and Panama, which have garnered significant attention but represent only a fraction of the broader relationship. While issues such as the dramatic abduction of Venezuelan President Nicolas Maduro and Panama’s supreme court ruling against CK Hutchison’s port concessions highlight risks in volatile states, China’s position in Latin America is underpinned by deep trade and investment links with the region’s largest economies.
In 2024, China’s trade with Latin America reached $518.5 billion, surpassing half of its trade with Southeast Asia and nearly 75% higher than its trade with Africa. China has solidified itself as a key trading partner for several South American nations, ranking second overall in the region. From an investment perspective, Latin America holds even greater significance, with Chinese foreign direct investment (FDI) rising from $8.7 billion in 2023 to $14.7 billion in 2024—a figure more than four times higher than its investments in Africa.
While Venezuela has been a focal point due to its oil resources and China’s role as a key buyer, trade with Caracas accounts for just 1.3% of China’s total Latin American trade. This underscores that the challenges faced by China in Venezuela are not indicative of its entire relationship with the region. Similarly, while lending to Venezuela declined sharply after 2015, China continues to play a significant financial role elsewhere in Latin America.
The broader context of China’s engagement in Latin America is shaped by geopolitical shifts and the Trump administration’s imperial behavior, which has led US allies to seek closer ties with China despite complications with some Global South countries. This dynamic raises questions about whether China will scale back its involvement in the region, but the data suggests otherwise. Latin America remains a critical component of China’s global trade and investment strategy, particularly as it seeks to diversify its economic partnerships beyond Southeast Asia.
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Originally published on South China Morning Post on 2/24/2026