China is strategically positioning South America as a vital and, in some ways, complementary alternative to Africa for securing raw materials and agricultural supplies.

While China’s engagement with Africa remains robust, its approach to South America is distinct, driven by a need for specific high-value commodities and food security.

China's Economic Needs: A Tailored Approach to South America

China's heavy investment in South America's energy, mining, and agriculture is a direct response to its domestic economic needs. Unlike Africa, whose exports to China are more diverse, South America provides key "mega-commodities" that are crucial for China's industrial and food security strategies.

• Minerals: While Africa is a primary source for strategic minerals like cobalt (over 90% of which comes from Africa), manganese, and chromium, South America holds a near-monopoly on other vital resources. Chile and Peru are the world's top copper producers, and the "lithium triangle" of Argentina, Bolivia, and Chile contains the majority of the world's lithium reserves. As China leads the world in electric vehicle and battery manufacturing, securing these minerals from South America is a strategic imperative.

• Agriculture: South America is a cornerstone of China's food security policy. China is the world's largest importer of soybeans, which are crucial for animal feed. Brazil and Argentina are the world's top exporters of soybeans, making them indispensable partners. This relationship has intensified, especially after U.S.-China trade tensions, which pushed China to diversify its agricultural supply chains away from the United States.

• Energy: Countries like Brazil and Venezuela provide China with a stable supply of oil, helping China to reduce its reliance on the politically volatile Middle East.

In this sense, South America is not simply a replacement for Africa but a strategic complement, providing resources that are not as readily available on the African continent.

Contrasting the Models: Africa vs. South America

While China has a strong presence in both regions, the nature of its engagement differs, highlighting why South America is not a simple substitute but a different, equally important piece of China's global strategy.

• Africa: China's engagement in Africa has been characterized by a "resources-for-infrastructure" model. Beijing provides large loans for major infrastructure projects (ports, railways, highways) that are often paid for with future resource exports. This model has helped China secure a wide array of raw materials, from oil in Nigeria and Angola to copper and cobalt in the Democratic Republic of Congo.

• South America: While the resources-for-infrastructure model exists in South America, the relationship is often more commercially driven. China's massive market for South American commodities creates a powerful economic pull, making countries like Brazil and Argentina structurally dependent on Chinese demand. Furthermore, Chinese companies have not only invested in new projects but also acquired significant stakes in existing, well-established firms, giving them a direct ownership and control over the supply chain.

The Geopolitical Dimension: A Challenge to U.S. Influence

China's heavy investment in South America is also a geopolitical move that challenges the United States' historical dominance in the Western Hemisphere. For over a century, the U.S. has considered Latin America its "backyard." China's growing presence serves to undermine this influence and offer South American countries an alternative to U.S.-led economic and political models.

• Diversification of Partners: By becoming the largest trading partner for Brazil, Argentina, and Chile, China has given these nations a degree of strategic autonomy. They no longer have to rely exclusively on the U.S. and Europe for trade, investment, and diplomatic support.

• Alternative Development Model: China's "no strings attached" approach to investment and trade is highly appealing to many South American leaders. This contrasts sharply with Western aid, which is often tied to conditionalities regarding governance, human rights, and fiscal reforms.

In conclusion, China's positioning of South America is not about abandoning Africa. Instead, it's about building a comprehensive and resilient global supply network. South America provides the specific resources and agricultural goods that China needs to fuel its economy, while also serving a broader strategic purpose of expanding its influence in a region long dominated by the United States.