Chinese Premier Wen Jiabao has proposed a $10 billion loan for countries in Latin America to fund infrastructure projects.
Speaking near the end of his tour to the region, Premier Wen also proposed a free trade agreement between regional trade bloc Mercosur, which includes Argentina, Brazil, Paraguay and Uruguay.
"The Chinese government... will continue to offer economic assistance to countries in the region that are interested," Premier Wen was quoted as saying by the Reuters news agency.
China has the world’s largest foreign exchange reserves and is looking for new areas to invest their money in.
"China has the manpower and the technical skills required to undertake massive infrastructure projects and also the deep pockets to fund them," Charles Chaw of China Knowledge Consulting told the BBC.
"They have proven their ability with success in their own country."