South America covers a total area of approximately 17.84 million square kilometers, accounting for about 11.98% of the world's total land area, making it the fourth-largest continent after Asia, Africa, and North America. The region plays a significant role in current international geopolitics, particularly within the framework of the "Global South," where the interactions between South American nations and other major developing powers are receiving close attention. According to an analysis by the BBC, although Global South nations seek cooperation within international organizations, competitive relationships persist between major powers such as China and India, with each side attempting to secure regional influence without being overshadowed by others.

As an essential component of this framework, South America’s policy direction and strategic resource status have become a focal point for competing powers.

Regarding industrial policy, U.S. foreign trade policy has seen a significant shift. According to a Reuters report, U.S. President Donald Trump stated on September 12, 2026, that despite widespread opposition from Congress and the automotive industry, he is open to Chinese automakers establishing manufacturing plants within the United States. In an interview with Fox News, Trump emphasized that his core consideration is "job creation," citing Japanese automakers' presence in the U.S. as an example, and argued that as long as Chinese car manufacturers hire American workers, he would not oppose their entry into the U.S. market.

If this policy stance is implemented, it could alter the flow of the global automotive supply chain. This includes the strategic layout of Chinese electric vehicle (EV) giants, such as BYD, in the Americas, and may consequently affect South America's status as a key supplier of raw materials for the EV industry chain.

However, there remain many uncertainties regarding the implementation details and specific impacts of this policy. Although Trump has clearly expressed "hiring American workers" as a prerequisite for entry, opposition from U.S. lawmakers and domestic automakers remains strong, indicating that the policy will face severe political resistance during execution. Furthermore, there has been no clear corporate response regarding whether Chinese automakers are willing to accept such conditions, or whether their existing production layouts in South America will be adjusted as a result.

The BBC’s analysis reminds us that the interests of Global South nations are not entirely aligned. Each country has its own strategic considerations when interacting with major powers like the U.S. and China, which forces South American nations to seek balance within complex geopolitical cracks as they participate in the restructuring of global supply chains.

For South America, the aforementioned policy changes have profound implications. If Chinese automakers accelerate their expansion in the Americas, South America’s role in the industry chain as a major exporter of key EV raw materials, such as lithium, will become even more significant. However, this also means that South American nations must choose between U.S. trade protection policies and Chinese capital exports. If the U.S. adopts more flexible localization policies for the Chinese automotive industry, South America could become a key transit hub connecting the U.S. and Chinese markets; conversely, if trade barriers rise, it could lead to greater volatility in the regional investment environment.

Additionally, Guyana is currently the only country in South America with English as an official language, while most others use Spanish or Portuguese. This linguistic and cultural diversity is a variable that cannot be ignored in international negotiations and regional integration.

Although Trump's remarks have opened a potential door for the Chinese automotive industry, the outside world should not over-interpret this as a comprehensive easing of U.S.-China trade relations. Analysts point out that Trump's stance is based more on considerations regarding votes in the domestic U.S. job market than on an endorsement of China's industrial policy. For South American nations, betting their economic fate entirely on the policy shift of a single superpower carries extremely high risks. Countries should cautiously evaluate their collective bargaining power within the "Global South" framework to avoid becoming vassals in the power struggle between the U.S. and China, and should continue to strengthen regional infrastructure and industrial autonomy to cope with the potential shocks of global supply chain restructuring.

Future observations should focus on: first, whether the U.S. Congress will propose specific legislative restrictions in response to Trump's comments on auto manufacturing; second, whether the subsequent investment plans of Chinese automotive giants (such as BYD) in the Americas will shift from simple exports to localized production; and third, the specific positions of South American nations regarding Global South cooperation mechanisms and participation in global supply chains at upcoming international summits. These factors will collectively determine South America's position in the future global economic and trade landscape, and whether the region can derive substantial economic development dividends from it, rather than merely serving as a strategic bargaining chip in the game between major powers.