The United States continues to be the largest foreign investor in Latin America and the Caribbean, but Chinese capital is gaining ground in strategic sectors such as mining, automotive, and logistics infrastructure. The competition between the two powers is reshaping investment priorities in a key region known for its resources, markets, and position within global supply chains.
The United States maintains a significant advantage over China as an investor in Latin America and the Caribbean, but looking solely at the total capital volume presents an incomplete picture of current dynamics. While U.S. companies sustain a much broader and more diversified presence, Chinese capital has made rapid advances in particularly strategic sectors.
A study published this summer by the Atlantic Council highlights this transformation through two decades of foreign direct investment greenfield projects. According to their calculations, the United States has invested an average of $28.7 billion annually between 2003 and 2025. The U.S. position remains dominant, but China has considerably accelerated from a much lower base. Its greenfield investment jumped from $4 billion in 2020 to $20.3 billion in 2023. The report estimates that the average annual growth rate between 2020 and 2025 reached 70%.
Two Strategies, One Region
U.S. investment is increasingly concentrated in energy and the digital economy. Between 2020 and 2024, energy projects averaged $12.6 billion annually, driven by significant investments in oil and gas, particularly in Guyana, as well as renewable projects in Brazil and Mexico.
China presents a different landscape. Its investments have particularly grown around natural resources and specific industrial chains. Mining is perhaps the clearest example: between 2020 and 2024, Chinese investment in new Latin American mining projects averaged $2.9 billion annually.
Mexico and Brazil Attract Capital
The competition between Washington and Beijing is also unevenly distributed across the continent. Mexico and Brazil continue to attract enormous amounts of investment, while other economies receive much smaller sums.
Competition that Ibero-America Can Leverage
U.S. investment retains certain characteristics that are difficult to replicate solely through large projects. The study estimates that between 2016 and 2025, it generated approximately 3,091 jobs for every $1 billion invested. U.S. companies also stand out for their presence in knowledge-intensive activities and for allocating a larger share of their regional investments to research and development.
The growing competition between the United States and China may offer opportunities in this regard. Latin America has natural resources, large markets, industrial capacity, and a geographical position that appeals to both.
The new investment landscape is being shaped by volume and sectors. The United States retains a dominant position and a business presence built over decades, but China has managed to gain significant ground where natural resources, electric mobility, and strategic infrastructure converge.
