Two-Pager: China’s economic and political role in the Caribbean and Central America

Disclaimer: This two-pager has been prepared by the CKN Secretariat and should not be considered the work of the individuals listed as authors of the report.

Key Takeaways

• China’s growing presence in the Caribbean Basin provides alternative sources of loans and investment, allowing countries to counter-balance traditional US and European hegemony, though the US and EU remain dominant trading partners.
• The One China policy is a key driver of engagement, with several countries switching recognition from Taiwan, strengthening China’s geopolitical clout.
• Chinese investments, primarily in infrastructure (airports, government buildings, hotels), have generally supported development without clear evidence of “debt traps,” but are often characterized by low transparency and strict contractual safeguards.
• Concerns persist over institutional weakening, lack of transparency, and potential security implications, especially in digital and strategic infrastructure, within a context of intensifying US–China rivalry.