American protectionist economic policy and reduced Chinese imports in the United States has led to the phenomenon of “nearshoring.” Mexico has benefitted from this, having received higher foreign direct investment, particularly from China.

The competition for Latin America is heating up. Washington and, increasingly, Beijing see the region as important for their strategic economic and political interests.

American markets dominate the Mexican economy and will continue to do so for many decades, but the combination of China’s growing presence in Mexico and the election of a leftist firebrand to the Mexican presidency could further strain U.S. relationships with both of these countries.

The United States did not push Latin America and the Caribbean into China’s arms, but by pulling back, it created space for others to fill. Now, it appears that the United States seeks a course correction.

During China’s President Xi Jinping most recent visit to the Latin American, he announced a renewed commitment to trade and investment throughout the Americas; by some accounts an estimated $250 billion in the next ten years. A project such as the proposed Nicaragua canal has raised critical questions about Chinese investments in Latin America.

China’s strengthening cooperation with Latin American countries will benefit regional economic prosperity and development, and is also in the interest of the US, according to Dong Chunling and Sun Changhao.

President Xi Jinping’s recent trip to Latin America underscored four aspects of China’s outreach efforts to Latin America. To expand South-South cooperation, to promote multi-polarity, to hedge against risks and challenges to future development by enhancing BRICS and Latin American cooperation, and to improve the provision of international public goods.

While it is rumored that Chinese President Xi Jinping requested the BRICS Summit in Brazil be held in July so he could attend the World Cup, Fernando Menéndez argues that China’s president should have more on his mind than a football game and highlights the significance of the upcoming BRICS Summit.

Expectations about the upcoming BRICS meeting in Brazil on July 15 are high, with many of the participant leaders aiming for the meeting to be a success for various political reasons. Eric Farnsworth analyzes these expectations, as well as the topics on the BRICS agenda for discussion.

Mexico has enormous economic potential and could play a significant role in labor-intensive production, but the cost of doing business there remains high. In breaking with the past, Mexico has opened up its economy. However, a large informal sector, low levels of commercial lending, and a lack of competition offset the benefits of Mexico’s low-cost labor.