Here in El Salvador
China is building
The National Library
in Uruguay,
Chinese smartphone maker
Xiaomi is opening up around
the country.
There are no Apple stores
Here at the Panama Canal,
China operates
some of these ports
in Argentina,
this Chinese bank
has more than 100 outlets
throughout the country.
And here in Brazil,
the largest company
for power generation
and distribution
is Chinese.
China is racing
for influence
in Latin America,
and it's going head
to head with the U.S..
Basically the U.S.
said that South America
belongs to North America.
Now, that has changed.
You can see
a lot of influence
from China
in Panama,
Colombia, Venezuela,
Brazil, Peru. Chile.
Almost 60% of Americans
think China's
economic power
is greater
than its
military strength.
And here in Latin America,
you see
signs of that power.
China is investing billions
and increasing
diplomatic ties,
signing new countries
to join its belt
and road initiative.
All the public busses are
Chinese brands.
Even governors
and mayors
from small areas of
Latin America
are flying to Shanghai.
As China is pouring
tens of billions
of dollars
into investments,
Chinese investment
package is significant
for Argentina.
The country likes to get
Chinese money.
Politicians,
they are looking for money
to create things
like roads or building.
During COVID.
China donated
more than half a billion dollars
in medical supplies
and money donations.
Chinese people,
they just gave
this country
a huge soccer stadium
for free.
Those are gifts?
Come on.
Nothing is free.
But it's not
just through investments
and diplomacy,
but also through tech.
Chinese companies
are aggressively opening
throughout the region
with Uber like apps
and opening up
smartphone stores
that will remind you of Apple.
They use
Chinese smartphones.
Didi Chuxing
It's the first thing I saw
when I left my hotel
in Panama City.
Guy at the store
tells me
they're planning to open
10 Xiaomi stores.
Few years ago,
I wouldn't think about
having a Xiaomi phone,
but it is something
that is happening.
This is my phone
Xiaomi
less than $300.
But make no mistake,
China is not doing this
in secret.
It wants the world to know.
China's global
media networks
are pushing out
this narrative,
even bringing on
American professors
from Georgetown University
who are bashing the U.S.
political system.
it is not going to be able
to match the resources
that China has
and huge
infrastructure projects
and the like.
They just won't be able to
to compete.
It's like China's CNN,
except it's
actually funded
by its own government.
And this is a channel
you will find
in your hotel room
from Paris to Mexico.
But is all of
this investment
a debt trap
with ill intentions?
Chinese government,
they are good guys.
They really want
to help us.
Or could
this be a good thing.
If we like China,
we will be Chinese.
And what is the U.S.
doing about it?
It is a strategic way
of economically
surrounding the enemy.
And the enemy, of course,
is the U.S.
Everybody says
here in Argentina,
like people
in the politics
and the economics.
China is going to be
our salvation.
The battle for influence
in Latin America.
China was basically
a poor,
underdeveloped
communist dictatorship
and decided
it wanted to open up
to the world.
China increases
its presence
in Latin America.
China grows.
President Alberto Fernández
state visit to China.
So we're seeing
a huge infrastructure
and investment
on behalf of Beijing
all across South America.
It needs resources
that Latin America has.
The United State seeks
to win back its neighbors
with billions of dollars
in new investments.
Dissatisfaction
with the way
that Washington dealt
with the pandemic
and trying to help out LATAM
Washington has
a lot of baggage
that China doesn't.
And sees the United States
as increasingly withdrawn.
And so China
has become involved.
And now the United States
obviously sees with
some concern
China's expanding
presence and influence
in the region.
If that's the most
dominant nation on earth,
what do you think
the world is going to
look like in 20
or 30 years?
I've been here for a
few days
and haven't seen any
building remotely
like the one
that is planned.
China is gifting
El Salvador
with a brand new stadium
and this library
that I find currently
under construction.
Once this building
is completed,
it will be astonishing
for El Salvador.
It's also very interesting
that this sign behind me
is mostly in Chinese
Spanish is
an afterthought.
This is part of a gift
where China has committed
to $150 million towards
13 projects here
in El Salvador.
And I've never
been anywhere
in all of the Americas
where I saw
so much Chinese prevalent
on a construction project
like this.
If you look at
the building
that's planned for here,
it says El Salvador,
of course,
on the entrance,
but higher
than El Salvador,
you'll see China.
While this is
a newer investment
over in Argentina,
China has been expanding
its reach far longer
through people's wallets.
This is it.
This is the bank,
and it's the tallest
building in the area
in a premium location.
ICBC is a Chinese bank.
About ten years ago,
it acquired Standard
Chartered here,
giving it a huge presence.
The move would make it
the first Chinese
financial institution
to enter Argentina
in Argentina,
this Chinese bank
has more than 100 outlets
throughout the country
Today,
It has more than 1 million
customers here.
And it's not just a bank
that happens
to be Chinese.
ICBC was started
and is owned
by the Chinese government.
It's crazy because
I’m not looking for anything
related to China right now.
And I saw the ICBC tower,
then I saw a big
ad for ICBC
and then over there
I saw
the Bank of China building.
But hold up.
Well,
it depends who you ask.
For starters,
it wants influence
and you can't blame it
for this.
The U.S. wants influence
and they spend
billions of dollars
through trade
donations,
diplomacy, military,
whatever it takes.
Trade between
China and Latin America
has grown from $18 billion
in 2002
to more than $300 billion today.
And China
is ultimately here
to present itself
as an alternative partner.
To the United States.
Its president has visited
the region
nearly a dozen times
since taking office.
But there's another thing
that China wants here, too
to isolate Taiwan
See, China claims Taiwan
as its own,
but Taiwan disagrees.
And China
wants countries
around the world
to pretty much
end relations
with Taiwan,
those willing to do so
will be rewarded.
That library
being built in El Salvador
was a direct result
of the country
cutting ties with Taiwan.
In 2018
El Salvador
recognized Beijing
and abandoned Taiwan.
China began
to reward the country
with this library.
And a stadium.
He is a politician
of a developing
world country.
So he needs
money to come in
so and he's doing
what agenda
tells him to do.
But El Salvador's
president got criticized
saying that
this is a debt trap
referring to the loans
that China gives in Africa
which many argue is a way
for China
to control the continent
by offering
lucrative loans,
knowing that countries
will have a hard time
paying them back.
But El Salvador's
president fired
back with this tweet.
What part of nonrefundable
did they not understand?
It's not a loan,
but a donation
Another country to
cut ties with
Taiwan is Panama.
The move happened
five years ago
and Taiwan
responded by saying
it felt anger and regret.
China has
had a long relationship
with Panama, dating back
hundreds of years.
And today, Chinese people
represent 5%
of its population.
The Panama Canal is used
mostly by the U.S.
and China,
which means both countries
have a vested interest in it.
In 2018
China stopped its plans
to actually build
an embassy
at the mouth
of the Panama Canal.
Tension between the U.S.
and China
sometimes happens here
in Panama.
And at one point
China was planning to open
an embassy
at the base of the canal.
But those plans were scrapped
after the U.S. pressured
Panama's president.
One diplomat saying,
of course,
there was pushback
from the U.S.
They weren't
going to allow
a huge Chinese flag
next to the entrance
of the canal.
Yet Chinese
presence is everywhere
around Panama.
I'm at a mall in Panama City
and above me,
you have celebration
for Chinese New Year.
And over here
they have a promotion
centered around
Bejing 2022 of course
The Olympics in China
next head over to Brazil
where China has invested
billions of dollars.
In 2018, China announced
it would spend
$38 billion in Brazil's
electric grid.
Chinese companies
are now moving
more staff here.
In the past few years
that population increased
more of these companies
are getting, needing
more people
to move to Brazil.
And China's
desires for Brazil aren't
just at a federal level
but even its mayors
and local
government officials
go to China to discuss
trade and investments
in Brazil.
But a lot of China's
actions are
bringing skeptics.
They are making amazing deals
helping this poor
developing countries.
But actually
they are trying
to take advantage of them.
it’s like a new subway
no worries.
Chinese government
is there for you.
We're going to help you.
How much I owe you?
Oh, no.
This is nothing.
just sign this paper.
I will be there
in 50 years.
The past five years have marked
a massive shift
in Latin America
as China's
biggest tech companies
enter the market
here in El Salvador.
They're promoting
Chinese smartphones
for as cheap as $35.
For a phone
Place like this,
you won't see any Samsung
or Apple iPhones.
You will see a lot of
Chinese smartphones
because the average
monthly income in
El Salvador
is around $350.
So of course,
if you're making
that much money,
of course, you cannot afford
an Apple Phone.
This is my phone.
Xiaomi
less than $300.
So why not iPhone
or Samsung?
Because it's a lot of money
to spend on a phone.
Xiaomi and Huawei
there are two massive
phone companies
that only expanded
outside of China
in recent years,
but quickly became the top
selling smartphone makers.
You won't find
them in the U.S.
after virtually
being banned,
with the U.S.
citing security
concerns, claiming
they have ties
to the Chinese government,
which there has
been much debate.
You want to do business
in China
with the Chinese company,
you have to transfer
your technology
to that numerous
other telecom companies
from continuing
to grow
and spy at our expense.
There's been no proof
that anything that
Huawei is doing or
any of their equipment
is leaking anything,
it’s just like a contrary.
But outside the U.S.,
people don't
seem to care or question
any of that.
Xiaomi
has become one of the top
smartphone makers
here in Brazil.
If you don't know
what Xiaomi is
you’re probably American
because you will not find
Xiaomi stores in the U.S.
But it's massively expanded
across the world
in Brazil.
And yes,
it totally reminds me
of an Apple store.
This brand is growing
really fast.
Actually,
the guy at the store
tells me they're planning
to open
10 Xiaomi
stores here in Brazil
just this year.
I've come to this popular
mall in Uruguay
where they have opened
a Xiaomi store.
It's the third
one here in Uruguay.
In all of South America,
there are only two
Apple stores.
But here in the
small country of Uruguay,
they've already opened
three Xiaomi stores
in recent years.
And it's increasing,
but it sells things
you would never find
at an Apple store
like a screwdriver.
This is really.
Interesting that it sells.
iPhone chargers
it's my first time to
take Didi.
You can think of Didi
as the Uber of China,
but it's not just
China anymore,
because I see it heavily
being used in Argentina.
Brazil
All right.
So a 20 minute
ride costs
about $1.50,
which is obviously very,
very cheap.
Uber is also cheap here,
but not that cheap.
One thing
he said in the Didi ride,
he actually prefers
Didi to Uber
because the commission
that he makes
is a little bit
higher than Uber,
and he said that
it's actually cheaper
for the consumer as well.
He said
Didi has been around
a couple of years
now here in Argentina,
and when I asked,
I was like,
Oh, it's Chinese, right?
And he said he thinks so,
but he didn't seem
to really know
that much or care.
Didi Chuxing
It's the first thing I saw
when I left my hotel
in Panama City
here in Brazil.
a go to app.
It's become 99
and it's a ride
sharing app.
You order a ride
the same way
you would on Uber.
So this is a direct competitor,
Uber vs. 99.
And they also have
the food components
that are competing
with Uber Eats.
So people have the choice
should I use Uber Eats
or should I use 99 food.
There's also another
capability here
called 99 pay.
It's at the bottom of the tab.
You can either get a ride
or you can actually
pay someone.
You can do it
all within the
99 ecosystem
which the US
not so common.
You don't see that
so often and
it’s super interesting
because a lot
of China tech
companies do that.
You have Alipay,
Tencent
also has WeChat pay.
So that's something
China sees
as the future of payments.
More than 1 billion
people use WeChat.
It's a messaging platform
that also has an easy
to use payment feature.
Of course,
most of that is in China,
but now China
wants to take over
some of the U.S.
dollars dominance
through its new
digital currency.
They are about to launch
a digital currency,
the digital renminbi
that is going to
be the new dollar
in 10 years.
In 15 years,
all the world
is making billions
with China.
Think of it
like a digital version
of it's paper money.
And unlike Bitcoin,
this is backed
by a central bank.
So just like
you take a $10 bill
out of your pocket here,
you would do it
on your phone.
But it's Chinese money.
They were tied
to the American economy
thanks to the dollar.
But the dollar is weak.
They've been weak
for so long now.
And it's not only
inflating,
it's not
the main currency anymore.
But 88% of global
transactions
are still done in U.S. dollars.
So it's not going anywhere
anytime soon.
But things could shift, particularly
in a place
like Argentina,
with its 50%
annual inflation.
The first thing
most people do here
after they get
paid is exchange
their Argentinean pesos
into U.S. dollars.
Then they stash
it under the mattress.
That's their entire savings
is physical U.S.
dollars in their home.
But if a stable digital
currency
allows them to hold assets
on their phones,
why wouldn't they?
I mean China owns
a huge part
of the American debt.
So China owns
the United States.
With the digital renminbi.
Not only are you
using China's currency,
but it's central bank
can see
your payment activity.
It knows your identity,
who you're paying
and who paid you.
This is CGTN it's China's
state funded media network
and it's meant to be seen
by people
outside of China.
I mean, you'll find it
on TV in your hotel room
in Mexico, Paris, Turkey.
Oh, and on Facebook,
they have 118 million followers
The United States pays
attention to
most of Latin America
only when there is
a particular
crisis of concern
to the United States,
whether it be
the war on drugs
and communism.
This media
conglomerate hosts
special about
Latin America's shifting
love toward China,
where they bring on
American professors
and political analysts
to say things like this.
Let's look
at what's happening
internally
in the United States.
Deterioration
of the political system,
dysfunctionality
of government.
We believe very much
peaceful, rising China.
George Bush
and Barack Obama
viewed their ties
as pretty much positive
for everyone.
Trump was more suspicious
as part of his nationalistic approach.
But today, U.S.Senators
Bob Menendez
and Marco Rubio
introduced legislation
to counter China
and Russia's influence
in the region.
The U.S.
and G7 leaders
launched an initiative
called Build Back
Better World,
which is a counter
to China's
Belt and Road Initiative.
Last year in Ecuador,
the U.S. signed an agreement
for a $2.8 billion
in infrastructure projects.
This money
could also be used
to refinance China's
so-called predatory debt.
And as part of it,
the U.S.
said they would want them
to ban China technology.
But is all of this too late?
CIA, The fed
they had the leash now
that leash is loose.
And there is another
bull in town.
Do you think the US will
step up its game?
to be honest with you,
I think they cannot.
I mean, it's too late.
They don't have
enough power.
They don't have enough money.
Many people I meet here
are indifferent
to China's rise
in influence,
while others
are more critical.
We don't have that
same impression,
at least not in
such a strong way
that Americans
probably have.
We know that.
Yeah, car companies,
phone companies,
they're starting to have
a bigger role here.
But it's something
that goes
kind of naturally
and people
don't question themselves
about it.
And it's not
something that comes ever
so often.
We will have to explain
to our children
and most certainly
to our grandchildren,
while China dominates
everything that matters.
Latin American people,
they say, no,
there is nothing wrong
with the Chinese government
or the Chinese influence
in South America.
They don't even realize
that the best way
to develop
a country is by yourself,
not dependending on
another big country,
a different country
with different culture.
Historians will condemn
as the beginning
of the end
of America's
place in the world,
as its most
influential nation.