Following Colombia's integration into China's Belt and Road Initiative, the U.S. has voiced its opposition to future Inter-American Development Bank (IDB) disbursements.
The U.S. aims to block funding for Chinese state-owned enterprises in Colombia. The U.S. asserts that such projects endanger its regional security.
The U.S. argues that its funds should not subsidize Chinese firms in the Western Hemisphere through international organizations. Indirect Chinese investment in Colombia occurs through loans for project co-financing.
Between 2018 and 2021, Colombia received approximately $1.366 billion in loans for project co-financing. The 4G Highways to the Sea plan received the largest share, about $417.7 million.
This represents 30.57% of China's total co-financing of local initiatives. Chinese investments in Colombia are channeled through entities like the China Development Bank.
Funds support projects including the El Dorado Airport expansion in Bogotá and the Hidroituango project. Between 2008 and 2021, infrastructure received the largest share of co-financing loans, totaling $927.2 million.
This accounts for 67.9% of the total amount allocated to such projects. Energy, financial services, manufacturing, and mining sectors followed.
Co-financing differs from direct foreign investment. Chinese co-financing projects align with China's long-term strategy under the Belt and Road Initiative.
Data on China's direct investment in Colombia is restricted. However, Chinese investment represented 1.1% of total foreign investment in the last four years.
Between 2018 and 2022, China focused its resources on mining (40.6%), manufacturing (12.4%), and transportation (11.6%). Bogotá's mayor, Carlos Fernando Galán, aims to have the city's first metro line operational by March 2028.
Economist César Pabón suggests that Chinese investments are not a realistic short-term alternative to U.S. relations. Prioritizing this shift could jeopardize the close relationship with the U.S.