Report: Countering China’s Influence in Latin America through Diplomacy, Development, and Defense

Prepared and written by ANTONIO PULIDO SAEZ

Today, the we were invited to participate at the U.S. Global Leadership Coalition (USGLC) for a virtual conversation forum with General Douglas M. Fraser, Commander of U.S. Southern Command (2009-2012), on how American investment and leadership in Latin America can counter China’s influence and strengthen our national security and economic interests here at home. This discussion was hosted by USGLC’s Veterans for Smart Power initiative and General Fraser was interviewed by Dana Bruce, Director of Development & Strategic Partnerships de USGLC.

As China expands its footprint through infrastructure projects, trade agreements, and strategic alliances in Latin America, the U.S. faces a pivotal moment to strengthen economic ties, promote democracy, and reinforce regional stability. General Fraser provides expert insights into the geopolitical dynamics at play and how a proactive approach to diplomacy, development, and economic engagement can enhance U.S. leadership in the Western Hemisphere.

This timely questions and answer conversation underscores the importance of leveraging American innovation, trade, and strategic partnerships to bolster security, create economic opportunities, and sustain long-term regional alliances that benefit both the U.S. and Latin America.

Key Topics and Arguments Presented by General Douglas M Fraser:

1. The Strategic Importance of Latin America to U.S. National Security

The Western Hemisphere is vital to U.S. national security, economic growth, and geopolitical influence. However, China, Russia, and Iran have expanded their presence in the region, posing new challenges. The U.S. needs a multi-faceted approach to maintain leadership in Latin America.

China’s growing economic and diplomatic ties:

? China has become the largest trading partner in South America and the second largest in Latin America overall.

? Chinese investments in 32 major ports, including both ends of the Panama Canal, raise concerns about supply chain vulnerabilities for the U.S. military and commercial trade.

? China operates 11 space station ground sites in Latin America, which may impact U.S. satellite operations and security.

Concerns about foreign influence:

? The U.S. Southern Command (SOUTHCOM) is closely monitoring the economic, diplomatic, and technological expansion of China in the region.

? Russia has increased its military cooperation with certain Latin American countries, while Iran has been strengthening political alliances.

? The General emphasized that this competition is not just military—the U.S. must engage through diplomacy, information, economic development, and partnerships.

2. U.S. Foreign Policy Priorities in Latin America

Question: What should be the administration’s main priorities in Latin America over the next four years?

Response: The U.S. government is focusing on two key issues.

Migration: Transnational criminal organizations (TCOs) play a significant role in facilitating migration and smuggling activities. The administration wants to strengthen cooperation with Latin American countries to manage migration flows at the source rather than just addressing it at the U.S. border.

Transnational Crime: The administration sees drug cartels, arms smuggling, and organized crime as threats to both U.S. security and Latin American stability. The U.S. is increasing law enforcement collaboration in the region to tackle these networks.

The General highlighted that migration and organized crime are interconnected and require a coordinated response from multiple U.S. agencies, including State Department, Treasury, Homeland Security, and SOUTHCOM.

3. Economic Competition: U.S. vs. China in Latin America

Question: How does U.S. investment and diplomacy compare to China’s approach?

Response: China’s Economic Tactics:

? China provides large-scale infrastructure funding in Latin America with low initial costs but often attaches debt-heavy conditions.

? Chinese firms are involved in critical projects like highways, power grids, and 5G networks, which could create long-term economic dependency on China.

U.S. Strategy to Counter China:

? The U.S. needs to increase diplomatic and economic investments, rather than relying solely on military cooperation.

? "Plan Colombia" as a success story: The U.S. helped strengthen Colombia’s security and economic stability through a whole-of-government approach, combining intelligence, law enforcement, economic aid, and military support.

? The General warned that China’s influence is not just economic—it is also affecting political alliances, technology infrastructure, and military partnerships across Latin America.

4. U.S. Assistance Freeze and Its Impact on Venezuela

Question: How does the U.S. assistance freeze impact Venezuelan NGOs and non-state media?

Funding for democracy initiatives and independent media is crucial in Venezuela to counter state-controlled propaganda.

If the U.S. cuts funding, China and Russia will fill the void and expand their influence.

The U.S. must evaluate alternative funding mechanisms to support Venezuelan civil society organizations.

5. Communicating the Importance of U.S. Investment in Latin America to the American Public

Question: How can the U.S. government explain to citizens why investing in Latin America benefits them?

Response: The best way to prevent crises like mass migration, drug trafficking, and economic instability is to address them at the source before they reach U.S. borders.

Investments in Latin America help:

? Reduce migration pressure by creating economic opportunities.

? Disrupt drug cartels and criminal networks that target the U.S. market.

? Strengthen trade partnerships that benefit American businesses.

? The General emphasized that long-term investments in Latin America contribute to U.S. stability and security, even if the American public often focuses on short-term results.

6. China’s Role in Synthetic Drug Trafficking in Latin America

Question: What is China’s motivation for supplying precursor chemicals for fentanyl and methamphetamine?

Response:

The economic incentive for China is clear, but it is unclear whether this is a government-driven effort or simply Chinese manufacturers exploiting market demand.

The U.S. must closely monitor supply chains and work with Latin American governments to disrupt the production of synthetic drugs.

7. Strengthening U.S. Diplomacy in Latin America

Question: Should U.S. diplomacy take the lead over military engagement?

Response:

Diplomacy must be the primary tool for engaging Latin America.

U.S. ambassadors and diplomats need to lead regional strategies rather than relying solely on security cooperation.

There must be a regional approach, since many security and economic challenges cross multiple borders.

8. China’s Influence in the Dominican Republic and Brazil

Question: How concerning is China’s economic partnership with the Dominican Republic and Brazil?

Response:

China surpassed the U.S. as the Dominican Republic’s largest trade partner since 2018.

Brazil’s strategic partnership with China has economic and security implications that require close monitoring.

China offers competitive financing but often creates long-term economic dependencies that weaken local industries.

Final Takeaways

General Fraser emphasized that Latin America is not just a geopolitical arena but a crucial partner for the U.S., with shared economic interests, security challenges, and democratic values. By fostering deeper trade relations, supporting sustainable development, and investing in regional infrastructure, the U.S. can create a mutually beneficial economic environment that counters foreign influence and reinforces long-term stability.

This conversation underscored the reality that U.S. engagement in Latin America is not just about foreign policy—it is about national security and economic resilience at home. A strong, prosperous Latin America leads to stronger supply chains, expanded markets for American businesses, and a safer hemisphere. Now is the time for strategic action, ensuring that American leadership remains the trusted partner of choice in the region.

As we reflect on today’s discussion, it is clear that economic statecraft, diplomatic leadership, and smart investment in Latin America are key to securing a future where prosperity, security, and democracy thrive—both abroad and here at home. The U.S. must strengthen economic and diplomatic ties with Latin America to counter China’s growing role.