China's Engagement with Latin America and Its Implications for Soft Balancing against the United States

Over a relatively short period of time, China has established a remarkable presence in Latin America, a region widely considered to be under the preponderant influence of the United States. While Beijing's increasing role in Latin America is understood by many analysts to be driven primarily by economic motives, this study argues that the theory of soft balancing offers a different conceptual lens, connecting seemingly distant issues and events and locating them in the context of US-China rivalry. Arguably, China does not yet intend to directly confront the United States, but its engagement in the region has recently spilled over into strategic and geopolitical realms, challenging America's hegemonic dominance. While Chinese soft balancing against the United States can employ different strategies, this study points to its lending behavior and robust institution-building efforts as the principal means of drawing Latin American countries into its orbit and undermining America's influence in the region. Given its unique geographical significance, Latin America, along with East Asia, is likely to be a geopolitical hotspot for US-China strategic competition.