Deals Help China Expand Sway in Latin America

By: Micah Bacheller

This article takes a look at China gaining more influence in the South American region. China is quickly realizing that it can get a hold of many South American countries through loans, especially in the current recession. Over the past 8 to 10 years, especially under Bush's administration, not much attention was given to South America, not much financial aid in that matter either. The South American countries that were once looking at the USA as their leader, now began looking elsewhere for help. China saw the need, and began lending money to countries like Brazil, Argentina, Venezuela and Ecuador. Mainly, China wants to lock in natural resources (gas and oil) for the years to come.

South America, which historically has been influenced by the USA, is now losing the ties with USA and starting to follow China. This means that the USA is losing its grip on South American countries, consequently, losing much of its power. This new chain of lending to South America supports the theory that the USA is losing power and that China is on the rise.