The disruptions of the coronavirus pandemic have taken a toll on China’s flagship foreign infrastructure and investment program, the Belt and Road Initiative (BRI). Its nature, pace, and scope are all likely subject to change in Latin America in the near- and long-term. Many Chinese-backed projects framed as part of BRI have hit the brakes across the region, as the Covid-19 crisis affecting industries, supply chains, and the movement of people and goods. Many countries have been in lockdown for months, with only essential activities authorized.
There have been fewer new Chinese infrastructure projects in Latin America this year, and no new countries have formally signed a BRI agreement. The ones that already signed are raising concerns over debt repayments to China as their economies face significant difficulties.
“We are entering into a new phase of BRI in Latin America, as China has been forced to transform the initiative,” said Ricardo Barrios, an analyst at RWR Advisory Group. “China has less money to lend and is being more selective about how it uses it, while it also has to cope with its own domestic economic problems.”
Launched in 2013, the Belt and Road Initiative aims to resurrect the ancient Silk Road and maritime trade routes, develop new links and enhance cooperation between participating countries and regions. Latin American countries began joining the initiative in 2017, and 19 nations have already signed an agreement.
In just a decade, trade between China and Latin America has increased more than 20-fold as regional partners have signed hundreds of agreements and broken ground on dozens of key energy, transport, and infrastructure projects in strategic locations. Diplomats have described the region as a “natural extension” of BRI.
“The coronavirus changes many things, both for China and Latin America. BRI is not a priority right now as everyone is preoccupied...
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