China is reducing its reliance on American food imports by investing heavily in South American infrastructure, particularly ports and railways. The Chinese state-owned company China Oil and Foodstuffs Corporation (COFCO) is building its largest export terminal outside China in the Brazilian port of Santos. This project aims to facilitate the trade of agricultural products like corn, sugar, and soybeans.
The terminal is expected to increase COFCO's annual export capacity from 4.5 million to 14 million tons, with full capacity projected for next year. This initiative is part of China's broader strategy to secure access to South America's agricultural resources due to domestic shortages of water and arable land.
China's influence in the region has grown since COFCO entered the Brazilian market in 2014 through acquisitions. In March 2022, COFCO secured a 25-year concession to develop a terminal in Santos, investing $285 million in infrastructure. Chinese companies are also expanding their presence in Peru with a deep-sea port project to accelerate trade with Asia.