Latin America's shifting geopolitics and the prolonged slowdown in China's economic growth in recent years have led to a significant change in Beijing's strategic approach to the region. The commodities boom at the beginning of this century coincided with a period of dramatic economic expansion in China. At the time, China seemed to buy everything, invest in everything and to welcome its new role as the principal geopolitical alternative to the United States for many of the countries in the hemisphere. And, the shift to the left in many Latin American countries - called the Pink Tide - invited the Chinese presence. Over the past year, however, China has adopted a more conservative approach to its role in the region. At the same time, in a number of the countries in the region, left-leaning government have been replaced by right-of-center ruling coalitions,
China has reduced its exposure in Venezuela and Ecuador, where it had accumulated significant shares of both countries' sovereign debt in exchange for promises of petroleum at below-market prices. It has hit the pause button on several major infrastructure projects linked to its Belt and Road Initiative and has reduced its financing of private corporations, particularly in manufacturing. Most significantly, it has focused its investment in very specific strategic industries, such as lithium mining and renewable energy.