China's Influence in Latin America and the Caribbean: SECTION 2: CHINA’S INFLUENCE IN LATIN
Date of Publication
1-1-2023 12:00 AM
Security Theme
Strategic Competition
Keywords
Chinese Activities, Latin America
Description
China has expanded and diversified its relationships with Latin American and Caribbean countries over the past decade. Although economic interests are the main driver for its activities in the region, China is devoting increasing attention to pursuing political and to some degree security objectives, including gaining international support for its diplomatic initiatives, pressuring countries to sever relations with Taiwan, and deepening military relationships. • China employs a whole-of-government approach in its relationships with Latin American and Caribbean countries, often bypassing national governments to advance its interests at the local level. Beijing’s strategy coordinates efforts by China’s official government representatives, such as embassies and political influence entities, state and nonstate companies, and quasi-governmental entities, to influence decisions across unrelated issue areas. China adapts its approach to individual countries’ political and social structures, cultivating relationships with national governments, subnational governments, and nongovernmental organizations (NGOs). • China’s economic importance and targeted political influence encourage Latin American and Caribbean governments to make domestic and foreign policy decisions that favor China while undermining democracies and free and open markets. China’s position as a top trading partner and bilateral lender for many countries gives it economic and political leverage. Substantial foreign direct investment from China is a tool of influence, as accumulation of assets affords Chinese companies the power to impact local and domestic prices in key sectors, such as minerals and energy. • China has closely collaborated with authoritarian regimes in the region, such as the Maduro regime in Venezuela, and enabled democratic backsliding in other countries, such as Ecuador and Bolivia. By selling digital and surveillance technologies to regimes in the region, China has enabled them to surveil and repress their populations, critics, and opponents. China has also provided significant financial support to these governments, thereby extending them an economic lifeline when they were cut off from international financial markets. • Although China’s demand for commodities has boosted regional economic growth, it has also encouraged its trading partners’ overreliance on natural resource extraction at the expense of higher-value-added activities. Many countries voluntarily com- 70 promise their own environmental, social, and governance regulations to attract Chinese investment. Due to the region’s weak institutions, China’s expanding influence may also facilitate corruption and increase risks to countries’ resource security and national interests. • China aspires to deepen its military engagement in Latin America and the Caribbean, although its current security activities in the region are limited in scope. Beijing has previously leveraged its economic and political influence in Argentina to establish a space tracking station operated by the People’s Liberation Army (PLA). Influence gained by financing and constructing potential dual-use infrastructure, such as ports, and supporting space programs throughout the region positions China to further increase its military presence in the future.
China's Influence in Latin America and the Caribbean: SECTION 2: CHINA’S INFLUENCE IN LATIN
China has expanded and diversified its relationships with Latin American and Caribbean countries over the past decade. Although economic interests are the main driver for its activities in the region, China is devoting increasing attention to pursuing political and to some degree security objectives, including gaining international support for its diplomatic initiatives, pressuring countries to sever relations with Taiwan, and deepening military relationships. • China employs a whole-of-government approach in its relationships with Latin American and Caribbean countries, often bypassing national governments to advance its interests at the local level. Beijing’s strategy coordinates efforts by China’s official government representatives, such as embassies and political influence entities, state and nonstate companies, and quasi-governmental entities, to influence decisions across unrelated issue areas. China adapts its approach to individual countries’ political and social structures, cultivating relationships with national governments, subnational governments, and nongovernmental organizations (NGOs). • China’s economic importance and targeted political influence encourage Latin American and Caribbean governments to make domestic and foreign policy decisions that favor China while undermining democracies and free and open markets. China’s position as a top trading partner and bilateral lender for many countries gives it economic and political leverage. Substantial foreign direct investment from China is a tool of influence, as accumulation of assets affords Chinese companies the power to impact local and domestic prices in key sectors, such as minerals and energy. • China has closely collaborated with authoritarian regimes in the region, such as the Maduro regime in Venezuela, and enabled democratic backsliding in other countries, such as Ecuador and Bolivia. By selling digital and surveillance technologies to regimes in the region, China has enabled them to surveil and repress their populations, critics, and opponents. China has also provided significant financial support to these governments, thereby extending them an economic lifeline when they were cut off from international financial markets. • Although China’s demand for commodities has boosted regional economic growth, it has also encouraged its trading partners’ overreliance on natural resource extraction at the expense of higher-value-added activities. Many countries voluntarily com- 70 promise their own environmental, social, and governance regulations to attract Chinese investment. Due to the region’s weak institutions, China’s expanding influence may also facilitate corruption and increase risks to countries’ resource security and national interests. • China aspires to deepen its military engagement in Latin America and the Caribbean, although its current security activities in the region are limited in scope. Beijing has previously leveraged its economic and political influence in Argentina to establish a space tracking station operated by the People’s Liberation Army (PLA). Influence gained by financing and constructing potential dual-use infrastructure, such as ports, and supporting space programs throughout the region positions China to further increase its military presence in the future.
