Last year, China made the most ambitious move in its Latin American diplomacy by joining hands with Brazil and Peru to construct a railroad project stretching from the Atlantic coast to the Pacific.

China on its part committed billions of dollars towards the dream project that is estimated to cost $10 billion. Experts hailed China's decision to become a part of the railroad project as a masterstroke that would finally help China in replacing America as a major ally to the Latin American region.   

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However, China's ambitious venture seems to have gone astray as the rail-road project has hit a stumbling block. The project has already missed its first deadline due to the non-completion of a feasibility study, which was initially expected to be finished in May.

Reports suggest that Brazil's current political turmoil has taken a toll on the railroad project. The nation's President, Dilma Rouseff, was recently suspended over an impeachment trial.

"The political situation in Brazil makes it very difficult for a project of this nature to receive attention," says Manuel Ruiz, director of Peruvian Society of Environmental Rights.

Industry experts are of the opinion that Brazil's current economic woes and global economic uncertainty are also hindering the project's implementation. Meanwhile, in the neighboring country Peru, political scenario is equally uncertain, which has made matters worse for China's rail-road project.

Peru welcomed a new president, Pedro Pablo Kuczynski, who won after a closely fought election earlier this week. Kuczynski has still not stated his views on China's pet project.

"Any new administration introduces a degree of uncertainty to the project," says Margaret Myers, director of the China-Latin America program at the Inter-American Dialogue.

Analysts claim that even though the railroad project is crucial for China's diplomatic ambition in Latin America, any potential deal in the project will not affect China's long-term pursuit and Beijing will continue with its ambition.

Experts cite that China is already making progress in other important areas in this pursuit. It has already become one of the biggest trading partners of Brazil, Chile and Peru. Its export to the Latin American region increased from $6 billion in 2000 to a whopping $130 billion in 2014, according to IMF data. China is also closing on U.S. to emerge as one of the biggest financial donors to South American countries.

Tagschina, Brazil, China and Latin America, China and Brazil, China rail road project