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China casts its net across Latin America in challenge to US – Uruguay’s historic shift

China casts its net across Latin America in challenge to US – Uruguay’s historic shift
Montevideo pivots toward Beijing amid intensifying great power competition

In early February 2026, Chinese President Xi Jinping welcomed Uruguayan President Yamandú Orsi to Beijing, marking a further deepening of bilateral relations between China and one of Latin America's most politically stable and democratic nations. Xi’s core message focused on promoting an "equal and orderly multipolar world" and a more inclusive globalization, while the two sides signed a new strategic partnership and over a dozen cooperation agreements in the fields of trade, technology, environment, intellectual property, and education.

The meeting holds particular symbolic weight for two reasons: it represents the first visit by a South American head of state to Beijing following the US-Venezuela confrontation in January, and it underscores that even open, democratic societies like Uruguay are prepared to deepen their ties with China during a period of intense geopolitical competition. Uruguay, often lauded as one of the region’s most resilient democracies, is sending a clear signal: strategic cooperation with China raises questions about the motives behind this approach, the degree of its foreign policy autonomy, and the implications for US influence in the Western Hemisphere, as well as deeper shifts in the international order.

Foreign policy goals of Uruguay

Uruguay’s institutions, rule of law, and democratic tradition distinguish it from neighboring countries that have experienced political instability and sharp populist shifts. This stability has earned it a reputation as a model of liberal governance in a region frequently plagued by crises and polarization. However, the country's foreign policy has never been one-dimensional. While maintaining ideological proximity to the West, it simultaneously seeks economic cooperation with the widest possible range of partners.

The country's leadership has repeatedly emphasized that international relations should be based on sovereignty, development, and the diversification of partnerships, not on ideological camps—a position clearly reflected in Orsi’s rhetoric in Beijing. For Uruguay, multilateralism is not an abstract concept but a necessity for a small state seeking to maintain diplomatic maneuverability. Cooperation with China is presented as a tool to ensure this flexibility rather than a full geopolitical shift.

The economic foundations

China has been Uruguay’s largest trading partner for more than a decade, absorbing key agricultural exports such as beef, soybeans, and cellulose. In 2025, approximately one-quarter of the country's goods exports were destined for China, with Uruguay recording a significant trade surplus. For an export-oriented economy, Chinese demand has bolstered foreign exchange revenues and expanded markets to an extent that Western markets have not always managed to offer. The importance of this relationship was also reflected in the composition of the delegation accompanying Orsi to Beijing: 150 members, including business leaders and academics.

Strategic cooperation beyond trade

Although the economy formed the core pillar of the rapprochement, the new strategic partnership extends cooperation into critical sectors such as intellectual property, environmental sustainability, and university collaboration programs. This expansion suggests that for Montevideo, the relationship with Beijing is no longer merely commercial. Uruguay appears to view China as a critical factor in its development strategy and for strengthening its regional influence within Latin America.

The message from China

Xi Jinping’s emphasis on an "equal, multipolar world" reflects the long-standing Chinese narrative of an international order where US hegemony is limited and emerging powers share influence. Beijing presents this vision as respect for sovereignty, non-interference, and inclusive growth—rhetoric that resonates across the Global South. In the case of Uruguay, Orsi echoed the importance of sovereign equality and cooperation in an era of geopolitical uncertainty and unilateral actions.

A modern challenge to the Monroe Doctrine

For decades, US policy in Latin America was based on the premise that the region belongs to Washington's sphere of influence. The active Chinese presence and rhetoric regarding multipolarity indirectly challenge this assumption. The fact that a country like Uruguay, with a clear commitment to Western democratic values, chooses deep cooperation with China sends the message that American influence is neither guaranteed nor exclusive in its own hemisphere.

Implications for US regional policy

The Uruguay–China partnership is part of a broader trend: Latin American countries are seeking a balance between Washington and Beijing, driven by their national interest. Brazil's increased willingness to deepen Mercosur–China trade talks is a primary example. This is not a simple "pivot" toward a major power, but a strategic diversification. This creates pressure on the US to formulate a policy that is competitive not only militarily or diplomatically, but also economically and technologically.

www.bankingnews.gr

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