Anticipating a disapproving changeover of US-China trade policies under President-elect Donald Trump’s watch, the Asian country inks deals with Latin American industrial sectors.
With Trump guarding the entrance points in US, the only conceivable way of strengthening international trade rapport with North American businesses is by authorizing strategic tie-up with US neighbors. Latin American countries such as Ecuador, Chile and Peru, among others, are being seeded as China’s strategic business partners, particularly in the industrial sectors of energy and infrastructure. Stringent immigration laws and overseas trade policies that are likely to be deployed across the US under Trump’s presidency will have an impending adverse impact on US-China businesses. Such a prognosis is well-assessed by President Xi Jinping, which is why China has recently declared its association with industry leaders from Latin America.
The move to swiftly shift from porch to backyards of the US comes after President Xi’s recent visit to Latin American countries. The Chinese President, in his visit, signed deals with Ecuador’s energy and infrastructure industry, rendering a high diplomatic status for its Latin American allies. The alleged Ecuador-China deals are expected to amount over multiple billions of dollars, while the president has reportedly reinforced diplomatic business relations with Chile and Peru as well. President Xi’s visit to these countries was politically charged with estimating repercussions of Trump’s victory at all geopolitical scales. Prior to Trump’s triumph, China’s business diplomacy included hiking the commodities demand in US and relieving its Democratic allies from setbacks suffered in the past decade.
Now, the superlative Asian country is positioning its global dominance by venturing out businesses in Latin America. Favorable growth opportunities for offshore business between China and Latin America are expected to emerge through such trade transactions, making the former a leading trading partner for the latter. For now, Trump is likely to be busy on deploying revamped immigration laws and deporting unlawful émigrés from the country. By the time he pays attention to this “backyard sale”, China is predicted to have partnered with Mexico, Chile and Peru, among other Latin American countries.