Texas stands prominently at the gateway of our nation and Latin American countries as a foremost trading partner that advances our economies. But this progress comes amid new challenges that threaten the sovereignty and viability of Latin American states, global democracy and America’s national security.
Armed with predatory loan terms and virtually no accountability, China’s sights are firmly set on our southern neighbors. As witnessed in other developing regions, the Chinese Communist Party (CCP) leverages lavish investments to build geopolitical influence, target strategic sectors of sovereign nations’ economies, and develop military capabilities in 147 countries, including at least 13 countries in Latin America.
"[China] has the capability and intent to eschew international norms, advance its brand of authoritarianism, and amass power and influence at the expense of these democracies," Gen. Laura Richardson, commander of U.S. Southern Command, testified before the U.S. House Armed Services Committee this spring.
U.S. officials recently warned about negotiations between China and Cuba to establish a new joint military training facility less than 100 miles off America’s shores. This follows reports of China’s efforts to establish a new electronic eavesdropping facility in Cuba that could intercept communications across the southeastern United States and monitor U.S. ship traffic.
WHAT CHINA IS DOING IN CUBA IS A BIG THREAT TO ALL OF US
Meanwhile, CCP officials in Argentina are working to establish a naval base at Tierra del Fuego that would grant the Chinese Navy control of a key passage connecting the Atlantic and Pacific oceans, as well as access to the entire region’s communications and maritime transit. If realized, this would open the door to extraordinary strategic Chinese military assets in America’s backyard.
Chinese companies also dominate infrastructure across the Panama Canal. Military experts warn the canal’s extensive China-controlled assets could easily be converted into military capabilities, threatening the flow of international trade. Beijing has already attempted to establish military bases in other developing regions under the guise of a "logistics facility."
Dams, railroads, canals and other major infrastructure projects are prime targets of Chinese loans. In Peru, a Chinese company is building the Chancay "mega-port" that could reconfigure shipping lanes across the southern Pacific when it opens next year. Another Chinese investment company owns several strategic ports in Mexico and a logistics terminal in the Mexican state of Hidalgo. As America confronts a devastating fentanyl crisis, Chinese-produced synthetic opioid precursors are pouring into Mexico for cartels to manufacture and smuggle across our southern border.
China targets strategic sectors such as energy development, petroleum refining and power generation. State-owned PowerChina is active in 50 ongoing projects across more than a dozen Latin American nations. As the Biden administration undercuts America’s energy independence, China is shoring up its own supplies through vast commodity-backed loans, such as Venezuela’s $50 billion loans-for-oil payments to Beijing.
Alarmingly, the CCP’s Digital Silk Road initiative exports Chinese information and communications technologies, exposing Latin America to increased cyber threats – threats that could reach the U.S.
Twelve of China’s largest tech companies, including Huawei, China Telecom and ZTE – all sanctioned by the United States – have set up operations in 15 Latin American countries since 2015, building data centers, telecoms networks, smart cities and 5G projects. In fact, 80% of Mexico’s telecommunications system comes from China, not the U.S.
CHINA'S GROWING DOMINANCE IN LATIN AMERICA A PROBLEM, EXPERTS SAY
Beijing is setting international technology standards with its proprietary technology while becoming central to Latin American infrastructure.
China has invested hundreds of billions of dollars into Latin America since joining the World Trade Organization in 2001. In 2017, China became the world’s biggest creditor, outpacing the World Bank and the International Monetary Fund. Massive investments allow the CCP to strongarm nations into adopting anti-democratic policies.
One example is particularly chilling: all Latin American countries recognized Taiwan’s sovereignty 20 years ago, but only seven do today. Honduras cited Chinese economic links as the impetus for its recent decision to cut ties with Taiwan.
Texas has taken aggressive measures to contain China’s attempts to exert influence in our state. In 2021, I signed the Lone Star Infrastructure Protection Act, banning companies from hostile nations like China from connecting to critical infrastructure projects in Texas.
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This year, I signed a law that secures access to Texas’ electric grid by any company or employee. I also directed state agencies to address vulnerabilities presented by TikTok and other software on personal and state-issued devices and recently signed Senate Bill 1893 that codifies that standard.
However, we must all recognize the CCP as the calculating force behind strategic investments in America’s backyard. Texas hears China knocking at our door. Will President Biden finally act?
