China and Latin America: A pragmatic embrace

FILE PHOTO: FILE PHOTO: China's President Xi Jinping (R) speaks with Venezuela's President Nicolas Maduro in front of a statue of Venezuela's late president Hugo Chavez during a ceremony in Caracas July 21, 2014. China will provide Venezuela with a $4 billion credit line under an agreement signed on Monday, with the money to be repaid by oil shipments from OPEC member Venezuela. The deal was inked during a 24-hour visit to Venezuela by Xi, who is on a tour of Latin America. REUTERS/Carlos Garcia Rawlins/File Photo

Executive Summary

Learn more about Global ChinaChina’s maturing relationship with the diverse nations of Latin America and the Caribbean (LAC), driven primarily by economic security interests, is facing new challenges as the struggling region copes with an intensifying wave of economic, public security, and public health crises. Eager to find new paths out of their chronic underdevelopment, the region’s governments largely welcomed Beijing’s entry into the hemisphere in the mid-2000s. The honeymoon of this first decade of growth, mainly in trade and investment ties, has morphed, however, into a more pragmatic embrace circumscribed by a mix of both popular and elite skepticism of the benefits of getting too close to Beijing. Concerns regarding China’s political, environmental, labor, and commercial practices, and their effects on certain constituencies in the region, are generating a pushback in some countries. Overall, however, the benefits of closer ties to China still seem to outweigh the costs and, given limited options amidst a serious economic downturn, LAC countries are likely to continue to invest in stronger relations with Beijing.

The United States, meanwhile, has woken up to the long-term threat China poses to its own longstanding role as the leading power in the region. Bipartisan views are converging on the need for a more robust response to China’s rise both globally and regionally. Although the Trump administration has failed to leverage these trends by setting the proper tone or substance for policies that would help swing relations back toward Washington, the deep roots of U.S.-Latin American relationships could nurture a revival of ties built on a consensus around democracy and human rights, fair trade, and more equitable and sustainable development. Regardless of who wins the presidential election in November, the United States should ramp up a more generous and sophisticated approach to its hemispheric partners so as not to cede more ground to China.