This chapter examines the impact of China’s economic displacement of the United States on public opinion and political elites in Latin America and the Caribbean (LAC). Using survey data from Latinobarometer and the University of Salamanca’s Elites Latinoamericanas project, the analysis reveals that in countries where China has economically displaced the US, both the public and legislators are more likely to view China favorably as a problem-solver for the region and preferred trade partner. The chapter also analyzes a case study of the Argentine legislative debate over a Chinese space station, demonstrating how economic displacement influences legislative behavior and creates a divide between ruling and opposition parties in their approach to China. Overall, the findings suggest that economic displacement erodes US soft power and political leverage in LAC, while increasing China’s perceived capability to address regional issues.

This chapter introduces and operationalizes the Economic Weight Index to measure China’s and the United States’s economic influence in Latin America and the Caribbean (LAC) from 2001 to 2020. The index, comprising trade, aid, investment, and loans data, reveals China’s dramatic rise in economic weight across all world regions, with LAC experiencing the most pronounced growth. Conversely, the US saw a significant contraction in its economic weight in LAC during this period. The analysis highlights regional variations, with South America experiencing the most substantial increase in Chinese economic weight and decrease in US influence. This quantitative approach provides a nuanced understanding of the shifting economic dynamics between China, the US, and LAC, laying the groundwork for exploring the causes and consequences of these changes.

This chapter empirically examines the factors behind China’s growing economic influence in Latin America and the Caribbean (LAC) from 2001 to 2020. It challenges conventional explanations focused on the commodity boom and ideological affinities, instead demonstrating that Chinese actors filled economic voids left by declining US presence. Using a novel metric of Chinese economic actors’ presence and econometric models, the analysis shows that decreased US economic weight significantly correlates with increased Chinese activity. The chapter also explores sectoral patterns of Chinese engagement and uses a conjoint experiment to reveal that LAC preferences for foreign investment are driven more by economic impact than investor nationality. These findings support the book’s central argument that China’s economic displacement of the US in LAC was primarily due to filling gaps left by US retrenchment, rather than deliberate Chinese strategy or inherent preference for Chinese goods.

This chapter examines the agency of Latin American and Caribbean (LAC) actors in demanding Chinese alternative goods through case studies in Argentina, Peru, and Brazil. It challenges the notion that China’s expanding influence in LAC is solely due to Chinese strategy, instead highlighting how local actors actively seek Chinese engagement to meet development needs. The chapter presents two mechanisms of agency: a top-down approach where national governments broker deals with Chinese entities, and a bottom-up approach where subnational actors or private companies initiate engagement. Case studies explore Chinese financing of hydroelectric dams in Argentina, private sector-led port development in Peru, and subnational governments’ procurement of COVID-19 aid in Brazil. These examples demonstrate how LAC actors strategically leverage Chinese offerings to address domestic needs, often filling voids left by traditional partners or bypassing national policies.