By Zoila Palma: China has unveiled an expansive policy paper on Latin America and the Caribbean (LAC), outlining a sweeping diplomatic, economic and cultural agenda aimed at strengthening ties with the region.
In this new policy paper, China promises “no string attached.”
But, China’s growing influence in Latin America and the Caribbean is increasingly being viewed not just as a source of investment and development, but as a potential pathway to economic dependence and strategic leverage that could compromise the sovereignty of smaller nations and the everyday well-being of their residents.
Beijing has rapidly expanded trade, infrastructure, finance, and diplomatic ties across the region, presenting itself as a reliable partner especially in contrast to Western actors perceived as conditional or disengaged.
This surge in engagement has positioned China as a major economic power in the hemisphere, with total trade exceeding half a trillion dollars in recent years and major credit lines offered to countries at forums such as the China-CELAC summit.
However, critics warn that this engagement often comes with hidden costs.
According to analysts, China uses a blend of economic tools—state-owned enterprise projects, heavy lending, technology partnerships, and diplomatic efforts—as strategic instruments of influence rather than purely commercial ventures. Chinese infrastructure projects, for example, can deepen a country’s reliance on Beijing for critical sectors such as ports, energy grids, and telecommunications, creating financial and political leverage over national policymakers.
Researchers describe this broad approach as a form of “economic statecraft” that can subtly shape political decisions without overt confrontation, effectively embedding Chinese influence in day-to-day governance.
Small Caribbean and Central American states feel these pressures acutely.
In the Caribbean, where China’s per-capita investment footprint is among the highest globally, loans and development deals have helped fill funding gaps but also raised concerns about long-term dependence. In some cases, Chinese firms have taken control of stalled projects or secured rights to strategic assets after financing challenges, drawing criticism from local business interests and foreign observers alike.
Analysts point out that economic dependence may translate into political leverage, as countries could face implicit or explicit pressure to align with Beijing’s diplomatic priorities or risk reductions in investment and trade.
Belize is one of the few countries in the Americas that maintains formal diplomatic ties with Taiwan rather than the People’s Republic of China, a stance rooted in historic relationships and economic cooperation with Taipei, including aid and trade support.
Despite Belize and Taiwan’s close relations, Beijing’s extensive engagement elsewhere in the Caribbean and Central America puts pressure on remaining Taiwan allies, with diplomatic recognition and investment incentives often intertwined in regional politics.
In Belize, Chinese businesses and investments continue to expand rapidly, with Chinese nationals now owning the majority of grocery stores and increasing their presence in hardware stores, restaurants, and even hotels.
For ordinary residents in LAC countries, rising dependence on Chinese capital and imports carries potential downsides: local industries may struggle to compete with inexpensive Chinese goods, essential infrastructure could be tied to foreign control, and migration of Chinese labor and business interests can be a source of social tension.
The post International News: China’s expanding footprint in Latin America and the Caribbean raises fears of Economic dependence appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: China has unveiled an expansive policy paper on Latin America and the Caribbean (LAC), outlining a sweeping diplomatic, economic and cultural agenda aimed at strengthening ties with the region. In this new policy paper, China promises “no string attached.” But, China’s growing influence in Latin America and the Caribbean is increasingly being
The post International News: China’s expanding footprint in Latin America and the Caribbean raises fears of Economic dependence appeared first on Belize News and Opinion on www.breakingbelizenews.com.
