In Latin America, carrots trump sticks — and China knows it

Beijing is gaining ground in America's own backyard, a neighborhood that US administrations past and present have long neglected.

- Tan Dawn Wei

In 1823, US President James Monroe fired off a warning that the US considered the Western Hemisphere as its sphere of influence and that it would view any foreign interference as a hostile act. The Monroe Doctrine, enunciated in his annual message to Congress, was directed then at European colonial powers.

Some 200 years on, the irony is that a new power — China — is making inroads into the region notwithstanding that foreign policy declaration.

While US President Donald Trump was busy doing deals in the Middle East earlier in May and receiving a luxury Boeing 747 jetliner as a gift from Qatar, President Xi Jinping was hosting heads of states and officials from 28 Latin American and Caribbean countries in Beijing, while dishing out US$9.2 billion (S$11.9 billion) in credit.

Three Latin American leaders showed up for the meeting of the China-Celac Forum — Brazilian President Luiz Inacio Lula da Silva, Colombian President Gustavo Petro and Chilean President Gabriel Boric, plus top officials from other countries of the 33-member Celac, or Community of Latin American and Caribbean states, regional grouping.

Speaking at the forum, after which he received a rare hug from Mr Xi, Mr Lula declared that there was no doubt that Celac's cooperation with China would strengthen the region's manufacturing industry and innovation.

"Our vocation is to be the axis of a multipolar order where the Global South is duly represented," he said, endorsing Mr Xi's vision of a multipolar world where developing countries have a greater voice in global governance.

Mr Lula also went home with at least 20 trade and investment deals — on top of an earlier batch of nearly 40 in November 2024 when he last met Mr Xi. These deals cover a diverse range of commercial interests, from soya and coffee beans to renewable energy and pharmaceuticals. Food delivery giant Meituan, for instance, is investing US$1 billion in Brazil over five years.