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The socioeconomic and political relationship between Latin America and the Caribbean (LAC) with China has become increasingly significant for both since the beginning of the 21st century. This article analyzes proposals by the United States and China in their bilateral relationship and the political effects of their increasing tensions on LAC. Consistent with the proposed framework of analysis of the socioeconomic LAC–China relationship—at least in terms of trade, financing, overseas foreign direct investments, and infrastructure projects—the article examines in detail these conditions, as well as providing an in-depth example of trade. The final part of the article discusses the important potential and challenges of China for LAC’s development and concludes that so far, and based on the in-depth analysis of the trade relationship, the LAC–China relation is closer to a core-periphery than to a South–South or win–win strategy. The document proposes to understand that the political economy within the United States, particularly of its private sector, have shifted substantially against China. In addition, the structure for analysis of the LAC-China relationship in the 21st century with a concrete structure of analysis in terns of trade, financing, Chinese overseas foreign direct investments (OFDI) and infrastructure projects. In light of current discussions, the analysis suggests for the inclusion of a group of new concepts –such as the “the new triangular relationships” and the “globalization process with Chinese characteristics” with a group of effects in LAC. The impact of the increasing China-United States tensions, from this perspective, generates massive challenges in LAC, independently of their diplomatic relationships to China.

China’s economic impact on Africa in the 21st century has been enormous. China became Africa’s largest trading partner in 2009 and has subsequently widened the gap with Africa’s second largest trading partner. China is Africa’s largest bilateral source of loans and an important provider of Organisation for Economic Co-operation and Development (OECD)-equivalent aid, although well behind the European Union and the United States. Annual foreign direct investment flows by Chinese companies are growing and are now in the same league as companies from other major investing nations. Increasingly, African leaders are focusing their economic relationships on China and, because of China’s economic success, some of them are also looking to China as an economic and political model. The future in Africa of China’s Belt and Road Initiative and the use of the renminbi (RMB) as an international currency are less clear. China’s influence on African economies comes with challenges. China has developed a significant trade surplus with Africa. Although resource-rich African countries have sizable trade surpluses with China, most African countries, especially the resource-poor ones, have trade deficits, some of which are huge. The influx of inexpensive Chinese products is also stifling Africa’s ability to produce similar goods. African governments welcome Chinese loans, which are usually used for infrastructure projects, but there are signs these loans are contributing to a debt problem in an increasing number of countries. Most Chinese aid to Africa consists of the concessionary component of these loans. Small Chinese traders have flocked to Africa, competing head-to-head with African counterparts. This has led to growing antagonism with African market traders, although African consumers welcome the competition. While Western countries collectively are much more important to African economies than is China, Beijing has become the single most important bilateral economic partner in a number of countries and is challenging the United States and Europe for economic leadership across the continent. China’s most significant competition in the coming years may be less from the United States and other Western and Western-affiliated countries such as Japan and more from developing countries such as India, Brazil, the Gulf States, Turkey, and Indonesia.