China’s expansion in Latin America is leaving a significant footprint in strategic sectors such as port infrastructure and trade. Beijing’s growing presence has been raising concerns about its influence on political and economic decisions, potentially compromising the autonomy and security of regional governments.
“All the projects and technologies that China develops are subordinated to the Communist Party and, therefore, to the interests of the Chinese state and its objective of global control,” Euclides Tapia, professor of International Relations at the University of Panama, told Diálogo.
The maritime crane market falls under this category. According to Chinese custom data, crane exports from China to Latin America increased by 47 percent year-on-year in the first 10 months of 2024, reflecting China’s central role in regional infrastructure projects, maritime trade platform DatamarNews reported.
Peru and Mexico are among the main recipients of these exports. In Peru, crane imports grew by 132 percent in October. Mexico recorded an increase of 193 percent year-on-year, with an extraordinary 1,202 percent spike in August alone, DatamarNews reported.
Panama also stands out in this context. Between January and October 2024, imports of Chinese cranes increased by 1,150 percent year-on-year. During the last quarter, 18 cranes manufactured by Shanghai Zhenhua Heavy Industries (ZPMC) were shipped to Panama.
The Chinese-made cranes have sparked worldwide concern that they could be a Trojan horse for espionage and sabotage in critical port infrastructure. Part of the concern is that the equipment could allow the Chinese Communist Party to undercut trade competitors with the gathered data, disrupt supply chains and the movement of cargo, and have the potential to devastate a nation’s economy.
“These cranes are especially dangerous in Panama, due to the canal that connects the Atlantic with the Pacific, a strategic economic, geopolitical, and logistical point, with potential for espionage,” Tapia said. “In Mexico, they also represent a risk, as it is a key gateway to markets in Mexico and the United States.”
ZPMC, a subsidiary of China Communications Construction Company, is the world’s largest ship-to-shore (STS) crane market, holding a 70 percent share of the global market. The state-owned company is part of Beijing’s strategy to consolidate its influence in the global maritime sector.
“China has eyes all over the world. We must develop technology capable of cybernetically neutralizing the capability of these equipment, which are present in various docks, to prevent them from being able to spy on the surrounding areas,” Tapia said.
Port control
China not only exports STS cranes but has invested in key ports in 16 of the 20 best maritime-connected countries. Among them is Peru’s Port of Chancay, as part of the Belt and Road Initiative. The port, operated by Chinese state-owned company COSCO Shipping, so far has 27 ZPMC cranes, container industry publication WorldCargo News reported.
“More than 27 percent of global container trade [in 2023] passed through terminals where leading Chinese and Hong Kong-based firms held direct stakes,” think tank Center for Strategic and International Studies (CSIS) indicated in a late October 2024 report.
To advance its strategy, Beijing is expanding its naval presence, under the pretext of protecting its economic interests from piracy and other threats, and justifying it as a security measure, while seeking to redesign the global maritime order, European magazine Modern Diplomacy reported.
“China seeks to recruit Latin American governments and peoples to support its new global initiatives aimed at redesigning the future world order,” said Vladimir Rouvinski, director of Interdisciplinary Research Center at Icesi University in Cali Colombia, Uruguayan political platform Diálogo Político reported.
“Latin America and other countries allow Chinese penetration in economics, logistics, intelligence, and cybersecurity, ceding part of their autonomy, wealth, politics, and defense,” Tapia said. “This presence gives China strategic information, threatening national sovereignty. Its objective goes beyond the commercial: it includes military, security, and geopolitical interests.”
Economic coercion
China’s growing economic influence, which positions it as the main trading partner of more than 120 countries, allows it to use economic coercion as a strategic tool to shape decisions in Latin America and other regions. These systematic pressures, says Voice of America, have become a central component of its foreign policy.
According to AFP, on December 4, U.S. Under Secretary of State for Economic Growth, Energy and Environment José W. Fernández said that at least half a dozen Latin American countries have requested U.S. assistance in “resisting economic coercion” from China.
“Today we have half a dozen countries in Latin America that are concerned about this and have come to consult us,” Fernández said at a press conference. “They [these nations] do not want their names made public.”
“The countries most vulnerable to this coercion are those with the strongest trade ties such as Argentina, Brazil, Chile, Costa Rica, and Peru. But they could also be weaker countries where China has a presence,” said Tapia. “Beijing uses coercive diplomacy to subdue them, forcing them not to question its domestic or international policies, marking red lines that they must not cross.”
Continental economic bloc
“Countries deeply dependent on China for trade, investment, and loans face economic pressure that the U.S. is not able to counter,” Tapia said. Beijing applies restrictions disguised as domestic regulations, limiting imports, and affecting strategic sectors, leaving the affected countries in a position of weakness in the face of Chinese trade practices.
“To counteract this influence, the Free Trade Area of the Americas (FTAA) project must be revitalized. A continental economic bloc that would strengthen economic security and hinder Chinese advance. As long as Latin America is divided, China will continue to gain ground unhindered,” Tapia warned. “We must establish a joint economic barrier that limits its penetration in the region.”
