Investments Without Transparency: Sosa Lunda Met With a Representative From China

In recent decades, Bolivia has significantly strengthened its ties with the People's Republic of China, especially under the administration of the Movement for Socialism (MAS).

This rapprochement has resulted in an economic and political dependency that raises concerns about the country's sovereignty and economic future. Recently, on February 18, 2025, China's Foreign Minister, Wang Yi, met with his Bolivian counterpart, Celinda Sosa Lunda, at the United Nations headquarters in New York.

During this meeting, China's intention to deepen strategic cooperation with Bolivia was highlighted, coinciding with the 40th anniversary of the establishment of diplomatic relations between the two countries and the bicentennial of Bolivian independence.

Wang Yi emphasized China's support for Chinese companies to invest in Bolivia, with the aim of accelerating development and improving living conditions in the country.

China-Funded Projects: Benefit or Dependency?

One of the flagship projects of this relationship is the Mutún steel plant, inaugurated in February 2025. With an investment of $546 million primarily financed by the Export-Import Bank of China,  the plant aims to produce 200,000 metric tons of steel annually, covering half of Bolivia's domestic demand.

However, the initial operation of the plant is managed by the Chinese company Sinosteel Engineering and Technology, raising questions about the actual transfer of technology and knowledge to Bolivian personnel. Additionally, according to official data from the Central Bank of Bolivia (BCB), as of October 31, 2023,  Bolivia's bilateral debt with China amounted to $1.414 billion.

However, the U.S.-China Economic and Security Review Commission reported a higher figure,  estimating the debt at $4.1 billion. This discrepancy could be due to differences in calculation methodology or the inclusion of debts with Chinese private entities. This figure, along with Chinese investments in key sectors such as mining, energy, and transportation, reinforces China's position as Bolivia's main bilateral creditor.

Meanwhile, U.S. foreign direct investment in Bolivia is comparatively minimal, highlighting a shift in traditional influences in the region.

Criticism of MAS's Economic Model

The economic model promoted by MAS has prioritized agreements with China that, while providing financing and infrastructure projects, also increase the country's economic and political dependency on the Asian nation. The lack of transparency in contract awards and the absence of public tenders in many of these projects generate suspicions of corruption and irregular management.

Additionally, the limited participation of Bolivian companies and labor in these projects reduces local economic benefits and perpetuates an asymmetrical relationship. It is crucial for Bolivia to reassess its economic development strategy, encouraging the diversification of its trade partners and promoting policies that strengthen the national private sector.

Excessive dependence on a single country, especially under conditions that may compromise economic and political sovereignty, represents a significant risk for the country's future.