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Latin America's China Dilemma: Shaping U.S. Policy in the Age of Competition



Key Facts

  1. U.S. policy towards Latin America is now largely shaped by concerns about China's growing influence in the region, as reflected in recent posture statements presented by the commanding officers of the U.S. military's Southern Command.
  2. Despite some concerns about issues such as corruption, labour rights violations, and environmental protection, many business leaders and members of the general public in Latin American countries such as Colombia are supportive of expanding economic ties with China.
  3. The U.S. should play to the crowd that cares about China, without forcing Latin American countries to choose between the U.S. and China. Instead, the U.S. should help shape the policy debate in Latin America about the risks of expanding economic ties with China and work with regional governments to demand better governance from Chinese companies operating in their countries.

The U.S. has a long history of prioritizing its global concerns over Latin America and the Caribbean. This was evident in 2006 when Gen. Bantz Craddock, the commanding officer of the U.S. Military’s Southern Command, testified to Congress about the region’s military priorities. At that time, concerns about “radical Islamic groups” dominated the discussion, while China and Russia were barely mentioned. However, the situation has changed significantly in recent years, and U.S. policy towards Latin America is now strongly shaped by the question of China’s involvement and influence in the region.

Gen. Laura Richardson, the current commanding officer of SOUTHCOM, presented a posture statement to the U.S. Congress last month, which started with “Strategic Competition with the People’s Republic of China – A Decisive Decade.” The document focused on the challenge of countering Russia’s influence in the region and how U.S. policy relates to China. This shift in focus is primarily due to China’s increasing economic and political influence in Latin America, which offers regional economic opportunities too large to ignore.

The U.S. cannot stop or reverse the trend of Latin American countries turning towards China, but it can help shape better actions by China throughout the hemisphere. Latin America is open to hearing and potentially acting on criticisms of how China operates in the region. Regional governments can and should demand better governance of environmental, labour, and human rights conditions from the Chinese companies that operate in their countries. The U.S. should articulate a message that helps shape the policy debate in Latin America about the risks of expanding economic ties with China, without forcing the region’s countries to choose a side.

Colombia Risk Analysis and Cifras & Conceptos recently published a report on China’s relationship and investments in Colombia, which provides a starting point for research in other countries in the hemisphere. The report suggests that Colombian business leaders and the general public are supportive of better relations with Beijing and more Chinese investment. Although many respondents are aware of the challenges that come with Chinese projects, including corruption, poor quality of work, labour rights violations, debt trap concerns, and the lack of environmental protection, the country and its political system have not fully grappled with addressing them.

More research is needed to understand public opinion in other Latin American countries on the question of China’s involvement and influence. However, if the results are similar to Colombia, the U.S. needs to consider what that means for its own Latin American policy. The U.S. should play to the crowd that cares about China or risk losing out to other regions of the world when it comes to Washington’s policy priorities.

In conclusion, U.S. policy toward Latin America is now all about competition with China. The U.S. cannot stop Latin American countries from turning towards China, but it can help shape better actions by China throughout the hemisphere. Latin America is open to hearing and potentially acting on criticisms of how China operates in the region. The U.S. should articulate a message that helps shape the policy debate in Latin America about the risks of expanding economic ties with China, without forcing the region’s countries to choose a side.

inputs from / WRP