Jamieson Greer pushes G20 to counter excess capacity, flags China’s non-market policies

China has emerged as the leading foreign investor in Latin America's mining sector, surpassing the United States in the race for critical minerals essential to the energy transition. According to data from S&P Global Market Intelligence, China invested $10.05 billion in the region from 2014 to September 2024, while the US invested $8.38 billion over the same period.

The US only began to take the mining sector seriously in 2022 under President Joe Biden's "friendshoring" initiative, aiming to stimulate production of critical minerals among close US allies in the region. However, the US has since fallen behind China, with US investment reaching $4.50 billion compared to China's $2.77 billion during the same timeframe.

China's early lead in Latin America's mining sector can be attributed to its significant investments in key minerals like lithium, copper, and others, which are crucial for the global energy transition. China's Belt and Road Initiative has further solidified its presence in the region, with over 20 Latin American and Caribbean countries signing cooperation agreements under the program.

While the US has attempted to counter China's influence through policy changes and initiatives, China's growing dominance in Latin America's mining sector underscores the region's strategic importance in the global energy landscape.