A US Tech Agenda Focused on Latin America to Outcompete the People’s Republic of China

Why It Matters

The shift toward Chinese‑backed technology threatens U.S. economic and security interests in Latin America and could lock Colombia into a China‑centric tech stack that limits future American market access.

Key Takeaways

• Colombia ranks third in Latin America for startup activity, 2024 growth.
• Chinese firms hold $3.1 bn in Colombian infrastructure contracts.
• US tech investment in Colombia fell 15% in H1 2025.
• Chinese smartphones capture 60% of Latin America market, 30% in Colombia.
• US lacks coherent strategy, risking loss of Colombian tech market to China.

Pulse Analysis

Colombia’s tech ecosystem is emerging as a focal point in the broader U.S.–China rivalry for influence in the Global South. In 2024 the country drew $513 million in venture capital, a 15% jump from the previous year, and now ranks third in Latin America for startup activity. At the same time, Beijing’s state‑backed firms have secured more than $3.1 billion in Colombian infrastructure projects, from metro lines to 5G rollouts, cementing a foothold that extends across the digital stack. These developments illustrate how cost‑effective Chinese solutions are reshaping market dynamics and creating a dependency that could outlast electoral cycles.

Chinese competitiveness stems from deep subsidies, vertically integrated supply chains, and procurement rules that prioritize price. The result is a dominant presence in consumer tech—60% of Latin America’s smartphone market and 30% of Colombia’s share—as well as a near‑monopoly in electric‑bus fleets, where BYD controls 92% of the domestic market. While U.S. firms cite regulatory uncertainty and limited scale, their investment in Colombia’s tech sector fell 15% in the first half of 2025, concentrating instead on traditional sectors like mining. This funding gap, coupled with a lack of a cohesive U.S. policy for Latin America, leaves American companies vulnerable to being priced out of future contracts and limits Washington’s ability to shape standards and data governance.

To regain traction, the United States must craft a coordinated tech strategy that blends public‑sector financing with private‑sector partnerships tailored to Colombian needs. Targeted grants for local R&D, joint‑venture incentives, and a clear roadmap for 5G and AI collaboration could offset Chinese price advantages while addressing security concerns such as IP theft. Moreover, a diplomatic push that aligns trade policy with technology cooperation—avoiding counterproductive tariffs—will be essential ahead of Colombia’s May election. By positioning itself as a reliable, long‑term partner, the U.S. can protect its economic interests and reinforce democratic norms across the region.