The U.S. and China are two of the largest trading partners in the world. Both of these countries are vying to cement their influence in Latin American countries, each one implicating the other in being a bad influence for Latin American countries. Venezuela and Brazil, along with a few other Latin countries have severed ties with the United States and instead decided to partner with the Chinese government. These countries feel that while partnered with the U.S. their economies were stagnant or even worse than before. The Chinese government has set up loans and land leases to these countries which at the onset, seem wonderful opportunities to help these economies grow, but which are predatory at best. The U.S. has attempted to point these deals out to the Latin countries, but America’s track record of predatory deals precedes them. China is setting up communications facilities and spaces that will facilitate greater access to space. The U.S. does not agree with this under the guise that the Chinese government Is very secretive with their plans for these locations and due to the fact that the Chinese government spies on and controls the media which is exchanged in their country, and now has the ability to do so in these Latin countries. In reality, the U.S. is afraid that China will have better access to spy on the U.S. and will have a greater real estate in space exploration. The U.S. and China have their own best interests in mind when “helping” these Latin countries. Instead of helping these countries stand on their own and establish themselves in the world they want to assert their own global dominance in these countries. In the end, as predatory as these countries are, the alternative, Russia, does not seem like it would be any better.
References:
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). New York: Routledge.
Woody, C. (2019). 4 ways China is gaining ground in Latin America, according to the US’s top military commander in the region. Business Insider. retrieved from https://www.businessinsider.com/southcom-4-ways-china-is-growing-influence-in-latin-america-2019-12
I feel fortunate to live in the U.S. because while our government may be strategic and as forthcoming as possible, I do not think they are trying to partner with other countries to undermine them as China and Russia seem to want to do. Your summary points out how the Chinese government is secretive and only communicates what they want others to hear and think. These are distinct signs of the manipulation and control China strives to dominate. I think your summary was good.
Hi Nadine,
I agree, as our text states, that the United States is losing influence in different sectors of the world such as Latin America (Moran Abramson Moran 2014). While predatory business practices may very well be one of the reasons these countries have decided to sever ties with the United States, I think there are other considerations to be had especially if you are one of the countries considering engaging in business with China or any other foreign entity that seems to come “bearing gifts”. As the old saying goes, “the devil is in the details”.
The main article you referenced (Woody 2019) details China’s seemingly benevolent and altruistic motives for investing in these countries as an attempt to raise the political and social standing of these countries. It does not take much in depth research to question the real motives. Further in the article Admiral Fallan states that in exchange for investment in countries such as Panama, Argentina, and El Salvador the agreements reached are very much in favor of the Chinese with few if any benefits beyond the major and very public “gift” offered. There may be many reasons for these host governments agreeing to such lopsided deals. Among these reasons could be their inability or lack of access to expert negotiators to negotiate much more fair agreements. Another reason could be lack of leverage with China or desperation on the part of the host nations for an influx of capital. Whatever the reasons may be, each nation appears to be at a disadvantage. As we learned in our text, Hofstede attributes Latin America as having a low Long-Term Orientation, which means that their culture typically considers only their immediate needs or desires without regard for the long-term effects or their decisions or actions. This possibly explains why they are making these decisions. What China has gained in Panama, for example, is access to the Panama Canal, which will certainly benefit its home corporations who seek to ship their goods overseas. In Argentina, they have developed a space station. This location allows them to have access to telecommunications across the continent with widespread access which reaches even the United States. This development certainly brings into question their motivation behind such a move, particularly when their return on investment is not always positive. According to another article that depicts China’s actions on the continent of Africa, this becomes more apparent.
China has invested heavily in the continent of Africa, particularly in countries such as Nigeria, Angola, and Kenya (Mourdoukoutas 2019). These countries are large producers of oil. In Kenya, China has offered to build a railway which connects Nairobi and Mombasa. According to the author, their intent is not to make money necessarily but to position themselves, as major investors, to leverage their investments in exchange for both political and diplomatic influence when it comes to policy. One institution in which this could affect their global influence profoundly is with the United Nations.
With this being said, China is certainly not investing in these countries for benevolent reasons, nor are they necessarily looking to make money, at least not right away. It seems more likely that they are looking to expand their influence to countries who are in dire need of capital in exchange for more solid diplomatic and political footing concerning policy decisions within these nations.
Resources
Moran, Abramson, and Moran (2014). Managing Cultural Differences. (New York: Routledge). p. 343.
Woody, Christopher. (2019). 4 Ways China is Gaining Ground in Latin America, according to US’s top military commander in the region. Business Insider. December 18, 2019. Last accessed 01 April 2020. Retrieved from https://www.businessinsider.com/southcom-4-ways-china-is-growing-influence-in-latin-america-2019-12
Mourdoukoutas, Panos (2019) Why is China building Africa? Forbes. 21 September 2019. Retrieved from https://www.forbes.com/sites/panosmourdoukoutas/2019/09/21/why-is-china-building-africa/#4149308e502c.