China spent years building ties in Latin America. Can Trump make room for the US?

March 7, 2026

Donald Trump is hosting a "Shield of the Americas Summit" at his golf club with conservative leaders from eight Latin American and Caribbean nations to counter China's expanding influence in the region. While the US was focused elsewhere over the past decade, China has become the region's dominant lender and trading partner, providing over $153 billion in financial assistance compared to America's $50. 7 billion between 2014 and 2023.

Who is affected

Latin American and Caribbean nations, particularly Argentina, Paraguay, El Salvador, Chile, Panama, Honduras, Guyana, and Ecuador (summit attendees)
Colombia, Mexico, and Brazil (notably absent from the summit)
Venezuela and President Nicolas Maduro (ousted following Trump's pressure)
Panama (affected by Supreme Court decision to cancel Hong Kong company's canal contracts)
Countries in the "lithium triangle" (Argentina, Bolivia, and Chile)
Economically vulnerable nations like Venezuela (owing China $60 billion)
Chinese firms and state-owned banks operating in the region
US companies competing with Chinese investment
Local populations affected by Chinese infrastructure projects

What action is being taken

Donald Trump is hosting the "Shield of the Americas Summit" on Saturday at his golf club
Kristi Noem is serving as special envoy for the summit after being dismissed as Secretary of Homeland Security
The Trump administration is working to "enlist and expand" US friends in the Western Hemisphere and limit Chinese engagement
China is shifting towards smaller, local projects including 5G networks, power transmission, high-speed rail, electric vehicles, data centers, and artificial intelligence
Latin American governments are attempting to maintain a balancing act between China and the US
Donald Trump is scheduled to travel to China to meet with President Xi Jinping on March 31

Why it matters

This represents a critical geopolitical competition for influence in America's own hemisphere, with significant implications for global power dynamics. China's substantial financial investment and infrastructure development over the past two decades has fundamentally shifted the region's economic orientation away from traditional US dominance, threatening American national security interests. The outcome will determine whether Latin American nations maintain strategic autonomy through diversified partnerships or become caught in a potentially harmful great-power competition that limits their options. Control over critical infrastructure like ports, energy grids, and communications networks, as well as access to strategic resources like lithium reserves, has long-term consequences for both economic development and national security across the region.

What's next

The "Shield of the Americas Summit" will take place on Saturday
Donald Trump is scheduled to meet with President Xi Jinping in China on March 31
China announced a 9 billion yuan credit line for the lithium triangle region in May 2025

Read full article from source: BBC