The Eagle and the Dragon: US and Chinese Foreign Direct Investment in Latin America
Level of Education of Students Involved
Undergraduate
Faculty Sponsor
James Old
College
College of Arts & Sciences (CAS)
Discipline(s)
International Relations
Presentation Type
Poster Presentation
Symposium Date
Spring 4-24-2025
Abstract
Since enduring colonization by the Spanish and Portuguese and neocolonialism under United States capitalism-hungry policies, Latin American countries have been objectified for their material resources for centuries. The 21st century has seen a shift in investment and attention to another global superpower as China has stepped in to implement numerous foreign direct investment (FDI) infrastructure projects. As the US scrambles to reconcile China’s investment trends, Latin American countries have emerged as a point of political and economic competition between the eagle and the dragon. This matter of FDI relationship gives rise to the question: does US FDI reactively follow Chinese FDI in Latin American countries? This article compiles data from the US Bureau of Economic Analysis, the Inter-American Dialogue and Boston University Global Development Policy Center, and other sources in an analysis of Chinese and US government FDI in Latin America as a region and in individual countries from 2007 to 2023. Through statistical analysis of US direct investment positions abroad and loans from China's development finance institutions, I test the data for correlation between US changes in FDI levels in relation to previous Chinese FDI trends. The correlation demonstrated that the US increased FDI spending in countries where China had invested the most two years prior. With these findings, Latin American countries could exploit FDI patterns to negotiate improved FDI deals and gain traction on the world stage.
Recommended Citation
Otten, Lucia, "The Eagle and the Dragon: US and Chinese Foreign Direct Investment in Latin America" (2025). Symposium on Undergraduate Research and Creative Expression (SOURCE). 1433.
https://scholar.valpo.edu/cus/1433
Biographical Information about Author(s)
Lucia Otten is a senior International Relations and Spanish major with an Environmental Studies minor. Her travels in Costa Rica and her time learning about international trade while in Washington, D.C. inspired her to pursue Latin America's role in shifting global investment dynamics for her senior thesis. After graduation, she is volunteering at farms around the world before applying to graduate school.