The United States continues to hold the position as the leading foreign investor in Latin America and the Caribbean across all significant metrics, despite China's rapid expansion in the region. This is according to a report released by the Atlantic Council on Wednesday.
The report, named "Mapping US Investment in Latin America and the Caribbean," was crafted by experts, including former Mexican Finance Minister José Antonio González Anaya, and unveiled during an event called "Expanding US Investment in the Western Hemisphere."
According to the document, "In the past two decades, no other country has matched the scale, breadth, or consistency of the US private sector's commitment in the area."
US foreign direct investment in new capital projects, known as greenfield projects, averages $28.7 billion annually in areas such as energy, digital infrastructure, manufacturing, and services.
In comparison, Chinese investment in the same category increased from less than $1.5 billion annually at the start of the century to $13.1 billion by 2024, marking significant progress yet still far from matching US levels.
Quality and Geographic Focus of US Investment
The report also highlights the superior quality of American capital: "US greenfield FDI creates 65% more jobs per $1 billion than Chinese investment and 22% more than European, making it the most productive capital in terms of job availability for the region."
Since 2020, approximately 70% of US investment has been directed towards Mexico, Brazil, and Guyana, while strategic partners such as Central American countries, Argentina, Chile, and Peru remain "underrepresented," according to analysts.
Costa Rica stands out as a replicable model: between 2020 and 2023, 73.2% of its foreign direct investment came from the US, with a strong presence in medical device manufacturing and technology sectors, achieving "a level of US investment intensity that rivals much larger economies."
Challenges in the Mining Sector
Despite the US's leading role, the document identifies a significant gap: investment in mining barely averages $200 million annually, whereas China invests twenty times more in that sector within the region.
This issue is crucial as Latin America and the Caribbean hold some of the world's largest reserves of lithium, copper, and nickel, essential minerals for chips, batteries, and strategic equipment.
China, on the other hand, has tripled its greenfield investment in the region since 2020, gaining ground in automotive manufacturing, logistics infrastructure, and mining, which accounted for 38.41% of its total investment in Latin America and the Caribbean from 2020 to 2024.
Chinese Influence in Cuba
In Cuba, this presence is evident through specific projects: the Cuban regime turned to Chinese companies following new sanctions, and Beijing has committed to building 92 solar parks on the island by 2028, with a capacity of 2,000 megawatts.
The report frames this competition as a national security issue: the Trump administration's strategy prioritizes regional economic partnerships, and US private capital is already moving in that direction. However, experts suggest that targeted government actions could significantly expand this reach.
"The urgency is real," concludes the Atlantic Council, pointing out the "gap in critical minerals" as the clearest opportunity for Washington to bolster its presence while securing its internal supply chains.
Key Insights on US and Chinese Investments in Latin America
Why does the US remain the leading investor in Latin America?
The US maintains its leadership due to the scale, breadth, and consistency of its private sector investments, particularly in sectors like energy, digital infrastructure, manufacturing, and services.
How does US investment compare to Chinese investment in job creation?
US greenfield investments generate 65% more jobs per $1 billion than Chinese investments, highlighting their higher productivity in terms of employment.
What sectors show a significant gap in US investment compared to China?
The mining sector shows a notable gap, where US investment averages only $200 million annually compared to China's much larger investment.