In recent years, South America has seen a dramatic shift in its economic and geopolitical allegiances, leaving the United States in an increasingly precarious position. Once firmly within the U.S.‘s sphere of influence, the region is now pivoting toward China, with trade, infrastructure projects, and strategic partnerships flourishing under Beijing’s watchful eye. This shift is not just a blow to U.S. influence in its own hemisphere—it’s a stark warning that America risks losing its place as the world’s leading power unless it adapts to the changing global landscape.
At the heart of the matter lies China’s calculated and effective outreach. Through its Belt and Road Initiative and other infrastructure projects, Beijing has cemented itself as a critical partner for South American nations. The construction of Peru’s Chancay port by China’s state-owned Cosco Shipping is a prime example. Promising to revolutionise regional trade, this project symbolises the growing dependence of South American economies on Chinese investments and technology. Meanwhile, the U.S. remains largely absent from such transformative initiatives, offering little to counter China’s sweeping economic ambitions.
This trend reflects a deeper failure in U.S. foreign policy. Washington’s declining engagement and chronic underinvestment in the region have created a void that China has eagerly filled. Moreover, with Donald Trump signalling a potential reduction in U.S. foreign aid and a focus on “America First” policies, the situation is likely to worsen. Historically, U.S. aid has been a cornerstone of its soft power, promoting development, democracy, and regional stability. A retreat from these commitments would not only weaken America’s ties with South America but also accelerate its pivot toward China.
The implications of this shift are immense. Economically, China is already the largest trading partner for nations like Brazil and Peru. Strategically, China’s deepening partnerships could provide it with increased access to critical resources and even military footholds—consider the concerns over the potential military use of ports like Chancay. Politically, South American nations may become more aligned with Beijing’s model of governance, which emphasises state control and economic pragmatism over democratic values.
This erosion of U.S. influence isn’t happening in isolation. As China gains ground in South America, it strengthens its broader strategy of challenging U.S. global leadership. Russia, too, benefits from America’s retreat, particularly as both nations share an interest in undermining the U.S.-led world order. The growing alignment between China and Russia, driven by mutual opposition to Western dominance, further compounds the challenges for Washington. Together, they are reshaping the geopolitical landscape, creating a world where U.S. power is no longer a given.
Yet this wake-up call does not have to signal defeat. The United States still has the tools to reclaim its influence in South America—but it requires a decisive shift in strategy. First and foremost, Washington must recommit to the region, not just with aid but with meaningful partnerships that address the needs and aspirations of South American nations. Investing in infrastructure, fostering trade agreements, and promoting green energy initiatives could serve as powerful counterbalances to China’s influence.
Equally important is the need to revitalise alliances and partnerships across the globe. South America’s pivot to China is part of a broader trend, reflecting growing doubts about America’s reliability as a global partner. By strengthening multilateral institutions and reaffirming its commitment to international cooperation, the U.S. can rebuild trust and demonstrate leadership.
South America is not just sending a message to Washington; it’s issuing a challenge. Will the United States rise to the occasion and reassert its role as a force for good and prosperity in the region? Or will it allow China to become the dominant power in its own backyard? The answer will define not just the future of South America, but the trajectory of U.S. influence in the 21st century.
