China courts the Caribbean/Latin America region

Two recent high-level conferences have highlighted China’s growing presence and influence in Latin America and the Caribbean.

The separate events in Trinidad and Tobago and the southern Chinese administrative region of Macao brought together government, business, and academic experts.

The changing geopolitical dynamics have become the subject of intense scrutiny as the region once again finds itself at the centre of major global diplomatic shifts.

This was put in sharp focus during a recent conference in Trinidad and Tobago held under the theme “China Caribbean Cooperation Amid a Changing World” at the Arthur Lok Jack Global School of Business.

It brought into sharp focus China’s expanding global Silk Road trade and diplomatic outreach initiative. One aspect of this is the blue economy, which promotes balanced and sustainable utilisation of the economic resources of the ocean, seas, and coastal regions while preserving the health of the marine ocean ecosystem.

During the Trinidad and Tobago panel discussion, Dr Char Yu, general director of the Institute of Latin America Studies at the Chinese Academy of Social Science, addressed the issue of opportunities via the blue economy.

“The cooperation in marine resource protection, offshore aquaculture, and seawater desalination aligns with the concept of the Blue Silk Road, Dr Yu said, adding that it offers new development pathways for resource-constrained countries.” “The Caribbean is a key region for implementing the global initiatives.”

Meanwhile, in Macao, China reaffirmed its long-term commitment to Latin America and the Caribbean during the recent 12th China-Latin America Infrastructure Cooperation Forum (China-CELAC).

That session brought together top government officials, business executives, and representatives from a range of industries and international organisations in discussions about what has been described as a new stage of China-Latin America relations.

NEXUS OF COMPETING INTERESTS

Academics, foreign policy, and trade experts have pointed to a three-way nexus of competing interests in the region.

On the one hand is the presence of China and Taiwan. Both are embroiled in a longstanding and increasingly tense diplomatic entanglement over the sovereignty of Taiwan while competing to maintain and expand their footprint in the area. “Beijing has increasingly challenged Taiwan’s presence in the Caribbean through the generous provision of aid – often known as ‘dollar diplomacy’,” said one review. It also noted that development aid from China is particularly important given declining levels of official assistance from the United States.

“China’s economic, diplomatic, and security relations with Caribbean countries are growing under Chinese President Xi Jinping, who appears to have elevated the region on Beijing’s foreign policy agenda,” notes another review.

On the other hand, the historical presence and influence of the United States in the Caribbean, generally regarded as being in America’s backyard, is a prevailing factor. Despite reductions in US aid, US investments remain a dominant presence. Furthermore, the area continues to rely on the US as its main trading partner, in spite of a tougher US policy stance towards some regional countries.

According to the US-China Economic and Security Review Commission, while the United States remains the largest economic and security partner in Latin America and the Caribbean(LAC), China has rapidly deepened its economic, diplomatic, and military engagement to become the region’s largest creditor and second-largest trading partner.

It says China’s efforts in the region are driven by four key objectives: (1) ensuring its access to the region’s abundant natural resources and consumer markets; (2) gaining LAC support for its foreign policies; (3) shaping LAC perceptions and discourse about China; and (4) gaining geopolitical influence in a region geographically close and historically subject to US influence.