The escalation of the tensions between the United States and China after the Taiwan visit of US House Speaker Nancy Pelosi might benefit Latin American countries, an article by opinion columnist Andres Oppenheimer said on Monday.
Published in the Dominican newspaper Listin Diario, the article said that the current tensions may push more multinational companies to move their factories from China to Latin America to be able to protect from possible obstacles in their exportations.
However, Oppenheimer continues, it is possible that very few Latin American countries take advantage of this opportunity.
"Many of regions' leaders are more of conservative populists and they are doing little to attract foreign investments," he said.
"Various experts in China say to me that there will be a major incentive for moving many factories based in China to other places."
He emphasized that the possibility of a war and US sanctions on China make this possibility stronger, according to what he has been told.
Likewise, the supply problems in China during the pandemic and the salary increases in the country have already alarmed many multinational companies, he said.
"These factors won't be disappearing in the near future. But, in contrast, Latin America might offer to multinational companies bigger proximity to the United States, the biggest market in the world, and similar time zones," he added.
"Furthermore, Mexico and other countries in the region have preferential business deals or free trade deals with the United States."
However, key countries in the region keep giving importance to exportations of raw materials instead of investing in developing industries of the 21. century, he said, adding that very few countries promote themselves as an alternative to the factories in China.
Quoting another Latin American official in China, Oppenheimer emphasized that there is competency for these factories in other places in the world too and that Latin American countries need to do something to attract more foreign investments.
Another possible secondary effect of the escalating tensions between US and China would be a Chinese decision of increasing support for Venezuela, Cuba, and Nicaragua, he stressed.
This would be a way for China to answer the United States for "entering its neighborhood" by entering the "neighborhood of the US".
However, quoting another official, he said, that China is not usually using the "eye for an eye" policy that was used by Russia in Cuba, Venezuela and Nicaragua.
Oppenheimer, in his general conclusion, said that despite the ineptitude of the Latin American leaders, there will be a small increase in the factories of China that will migrate to the region.
"This will happen especially in the case of Mexico and other countries that are close to the US market," he said.
"It is a shame that what could be an economic boom for Latin America will be reduced to a small increase, which will probably occur in a slow motion, at least until the political situations change."
