The world “cannot close its eyes to China” as it looks to double down on its strategic political and economic goals around the world, Express.co.uk has been told. It comes after Taiwanese President Tsai Ing-wen this weekend reaffirmed Taiwan’s diplomatic ties with Guatemala, one of the shrinking number of countries that formally recognises it as a state. With President Tsai by his side, Guatemalan President Alejandro Giammattei described Taiwan as the “one and only true China”. Last week, Honduras severed its longstanding ties and formally recognised Beijing as the capital of one China, in favour of the country’s lucrative Belt and Road Initiative.
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Since the end of the Cold War, China’s interest in the region has blossomed. According to fDi Intelligence, its trade in South America grew “dramatically” between 2001 and 2010, from $14.6billion (£11.9billion) to $315billion (£255billion).
Just last month, Qin Gang, China’s new foreign minister, said that “China’s diplomacy has pressed the accelerator button” when discussing the country’s international efforts.
The economic sectors in Latin America and the Caribbean have been the biggest beneficiaries of the rise of China as a “trade powerhouse”, according to the World Economic Forum.
China and LAC’s trade increased 26-fold and is predicted to show no signs of stopping. By 2035, it is anticipated that it will have doubled, exceeding $700billon (£568billion).
Professor Enrique Dussel Peters, the coordinator of the China/Mexico Studies Center at the National Autonomous University of Mexico, has been studying China in Latin America for the past 20 years.
He explained that China’s presence in LAC began to increase rapidly five years ago in terms of trade, investment, and infrastructure — even without formal diplomatic ties.
Now that fewer and fewer countries recognise Taiwan in favour of China — except for Guatemala, the “last important country that still recognises” it — Professor Peters said the world is witnessing “a qualitative movement in formalising the increasing presence of China in the region.”
He continued: “It makes a lot of sense. You cannot close your eyes and say China does not exist. All these countries, with or without diplomatic ties, are increasingly exchanging with China.”
There is “huge potential” in working with China which the business elite in LAC have recognised, Prof Peters explained. But exchanges cannot always bear fruit without the existence of diplomatic ties.
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The likes of Honduras forming diplomatic ties with China should not come as a surprise, according to Prof Peters.
He said: “It simply reflects ‘do I want to have a small share of 150 million Chinese tourists in Honduras?’ This will generate a tremendous impact.”
Much of Latin America — and the world — has either remained silent or effectively sided with China in its move to delegitimise Taiwan, as a recent data analysis by Express.co.uk showed.
As it stands, China is the second-largest trade partner after the United States in Latin America in what was previously referred to as the US’s “backyard”.
China’s increasing presence has been a source of anxiety for many both in Washington and other liberal democracies around the world.
Beijing’s satellite ground stations in South America have raised alarm bells with multiple governments expressing concern over its intentions, according to a report by Hidden Reach.
President Xi Jinping has been calling for the country to become a leading “space power” but there are fears that this expansion could be used as a way of collecting intelligence and conducting surveillance.
There are several satellite ground stations dotted across the likes of Argentina, Bolivia, Venezuela, Chile, and Brazil. They are often stationed around the world to gain more robust coverage.
However, the report said the proximity of the stations “to the United States has heightened fears that they can be used to spy on US assets and intercept sensitive information”.
