Chinese state banks have lent upwards of $75bn to Latin America since 2005, and in 2010 gave more than the World Bank, Inter-American Development Bank and US Ex-Im Bank combined, according to a report which underlines China’s growing influence in the fast-growing region.

“On the positive side, it is clear that China is a new and growing source of finance in Latin America,” notes the independent academic report New Banks in Town: Chinese finance in Latin America. “That said, and contrary to much commentary on the subject, by and large Latin American nations have to pay a higher premium for loans from China.”

China has already overtaken the US to become Brazil and Chile’s largest trade partner. Furthermore, many US policymakers fear that Beijing is using cheap rate loans to “buy” influence among left-leaning Latin American governments that are hostile to western interests, and that Beijing uses low-priced financing to secure long term commodity supplies.