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Where the Andean foothills dip into the Amazon jungle, nearly 1,000 Chinese engineers and workers have been pouring concrete for a dam and a 15-mile underground tunnel. The $2.2 billion project will feed river water to eight giant Chinese turbines designed to produce enough electricity to light more than a third of Ecuador.
Near the port of Manta on the Pacific Ocean, Chinese banks are in talks to lend $7 billion for the construction of an oil refinery, which could make Ecuador a global player in gasoline, diesel and other petroleum products.
Across the country in villages and towns, Chinese money is going to build roads, highways, bridges, hospitals, even a network of surveillance cameras stretching to the Galápagos Islands. State-owned Chinese banks have already put nearly $11 billion into the country, and the Ecuadorean government is asking for more.
Ecuador, with just 16 million people, has little presence on the global stage. But China's rapidly expanding footprint here speaks volumes about the changing world order, as Beijing surges forward and Washington gradually loses ground.
While China has been important to the world economy for decades, the country is now wielding its financial heft with the confidence and purpose of a global superpower. With the centre of financial gravity shifting, China is aggressively asserting its economic clout to win diplomatic allies, invest its vast wealth, promote its currency and secure much-needed natural resources.
It represents a new phase in China's evolution. As the country's wealth has swelled, President Xi Jinping has pushed to extend China's reach on a global scale.
China's currency, the renminbi, is expected to be anointed soon as a global reserve currency, putting it in an elite category with the dollar, the euro, the pound and the yen. China's state-owned development bank has surpassed the World Bank in international lending. And its effort to create an internationally funded institution to finance transportation and other infrastructure has drawn the support of 57 countries, including several of the United States' closest allies, despite opposition from the Obama administration.
Even the current stock market slump is unlikely to shake the country's resolve. China has nearly $4 trillion in foreign currency reserves, which it is determined to invest overseas.
China's growing economic power coincides with an increasingly assertive foreign policy. It is building aircraft carriers, nuclear submarines and stealth jets. In a contested sea, China is turning reefs and atolls near the southern Philippines into artificial islands, with at least one airstrip able to handle the largest military planes.
China's leaders portray the overseas investments as symbiotic. "The current industrial cooperation between China and Latin America arrives at the right moment," Prime Minister Li Keqiang said in a visit to Chile in late May. "China has equipment manufacturing capacity and integrated technology with competitive prices, while Latin America has the demand for infrastructure expansion."
But the show of financial strength also makes China - and the world - more vulnerable. Long an engine of global growth, China is taking on new risks by exposing itself to shaky political regimes and other economic forces beyond its control.
Any major problems could weigh on China's growth, particularly at a time when it is already slowing. The country's stock market troubles this summer are only adding to the pressure, as the government moves to stabilise the situation.
While China has substantial funds to withstand serious financial shocks, its overall health matters. When China swoons, the effects are felt worldwide, by the companies, industries and economies that depend on the country's growth.
In many cases, China is going where the West is reluctant to tread, either for financial or political reasons - or both. After getting hit with Western sanctions over the Ukraine crisis, Russia, which is on the verge of a recession, deepened ties with China. The list of borrowers in Africa and the Middle East reads like a who's who of troubled regimes and economies that may have trouble repaying Chinese loans, including Yemen, Syria, Sierra Leone and Zimbabwe.
With its elevated status, China is forcing countries to play by its financial rules, which can be onerous. Many developing countries, in exchange for loans, pay steep interest rates and give up the rights to their natural resources for years. China has a lock on close to 90 per cent of Ecuador's oil exports, which mostly goes to paying off its loans.
"The problem is we are trying to replace American imperialism with Chinese imperialism," said Alberto Acosta, who served as President Correa's energy minister during his first term. "The Chinese are shopping across the world, transforming their financial resources into mineral resources and investments. They come with financing, technology and technicians, but also high interest rates."
China also has a shaky record when it comes to worker safety, environmental standards and corporate governance. While China's surging investments have created jobs in many countries, development experts worry that Beijing is exporting its worst practices.
Chinese mining operations, like many American and European companies in previous decades, have been accused of abusing workers overseas. China's coal-fired power plants and industrial factories are adding to pollution problems in developing nations.
Issues have already surfaced in Ecuador. A few miles from the site of the hydroelectric plant, the Coca River vaults down a 480-foot waterfall and cascades through steep canyons toward the Amazon. It is the tallest waterfall in Ecuador and popular with tourists.
When the dam is complete and the water is diverted to the plant, the San Rafael falls will slow to a trickle for part of the year. With climate change already shrinking the Andean glacier that feeds the river, experts debate whether the site will have enough water to generate even half the electricity predicted. Ecuadoreans on the Chinese-run project have repeatedly protested about wages, health care, and general working conditions. "The Chinese are arrogant," said Oscar Cedeno, a 20-year-old construction worker. "They think they are superior to us."
Last December, an underground river burst into a tunnel at the site. The high-pressure water flooded the powerhouse, killing 14 workers. It was one of a series of serious accidents at Chinese projects in Ecuador, several of them fatal.
©2015 The New York Times News Service
