China’s Economic and Political Role in the Caribbean and Central America

This is the second report in a series of three studies into the economic and political influence of China in Latin American and the Caribbean, and the implications for the region’s relations with Europe and the US.1 The report presents the findings of our research about the Chinese presence in the Caribbean Basin: the Caribbean and Central America, including the Caribbean coast of South America and the Guyanas. This region, strategically located between North and South America, has always held great geopolitical significance. Central America and the Caribbean are home to half of the fourteen countries that still hold official diplomatic relations with Taiwan, whereas seven other countries ended their ties with Taipei since the turn of the century. Besides the economic interests that the People’s Republic of China has in the region, its One China policy has been an undisputed driver of the intensification of relations. Assessing the role of Chinese actors in the region therefore requires attention on the relationship between economic and political drivers. This report also pays attention to the Caribbean countries of the Kingdom of the Netherlands.