The U.S. International Development Finance Corporation (DFC) is considering establishing strategic economic zones in Latin America. This initiative aims to counter China's increasing economic influence in the region. The proposal involves facilitating investments by U.S. companies through these zones.
Experts at a Hudson Institute debate highlighted China's extensive investments in Latin America. These investments span infrastructure, port facilities, and critical minerals. China has invested approximately $130 billion in the region.
Political risks facing U.S. companies investing in Latin America were also discussed. These risks give Chinese companies an advantage, as they often prioritize influence over immediate profits. The DFC's new powers should address these political risks to encourage U.S. investment.