China and its BRI in Latin America: US-China Grand Strategy

The Monroe Doctrine, promulgated by President James Monroe in 1823, has become a defining precept of the U.S. Foreign Policy coverage aimed toward stopping further European colonisation in the Western Hemisphere. Over the years, this declaration of American hegemony paved the way for massive U.S. political and economic interventionism during the 19th and 20th centuries.

Illustration by The Geostrata

In recent years, China's ambitious Belt and Road Initiative (BRI) has facilitated its expanding financial and political clout in Latin America through infrastructural investments, change deals, and useful resource extraction initiatives.

As Beijing's presence grows through the BRI, extending its influence into what has traditionally been taken into consideration the U.S. Sphere of have an effect on the international system.

Therefore a question arises about the continuing relevance of the Monroe Doctrine and ability for renewed excellent strength contention in the vicinity among China and the United States.

MONROE DOCTRINE AND IMPLICATIONS ON LATIN AND CENTRAL AMERICA:

The implementation of the Monroe Doctrine by the United States in 1823 saw the United States wrest hegemony in the New World and sought to keep the exhausted European Powers out of the region. The then Secretary of State, John Adams feared that they could resuscitate the Spanish Empire in the region that would threaten the interests of Washington.

Moreover, he believed that the independence movements led by Freedom Fighters San Martin of Peru and Simon Bolivar of Colombia were influenced by the ways the US influenced their independence, incorporated the principles, took the institutions employed by the States and finally, the values of the US constitution.

This is argued by Monroe, “the American continents, by the free and independent condition which they have assumed and maintained, are henceforth not  to  be  considered  as  subjects  to  future  colonisation  by  any  European  powers.”

With this the United States in the 19th century enhanced their diplomatic outreach in the region by engaging with Latin States and vying for domination. With the domination of the Royal Navy and its significant influence due to trade with Latin America and being the biggest capital importer, Washington wanted to change the status quo and replace Britain by choosing arbitration and utilising force rather than outright invasion.

Lecturer Kathryn Greenman explains the reasons the US sought this measure, “Arbitration offered the US a new type of imperialism. It accorded with a widespread US self-understanding as anti-imperialist but under a guise of legality, allowed for the universalisation of the US way of doing things.” 

From 1898 to 1994, the United States overthrew 41 governments through direct or indirect means in the region.

This was used under the guise of the Monroe Doctrine and resulted in a significant overhaul in the politics in the region for the time to come. Initially, it was worried that European powers could threaten its interests.

Researcher Abad argues, “Specifically, U.S. officials worried that instability provided Germany with opportunities to expand its footprint in the Americas.”

There was therefore the worry that, to secure its interests, it had to act in this manner. With the construction of the Panama Canal in 1914, Washington understood the crucial importance the region holds.

Research Fellow Pope Atkins articulates, “Two long-range U.S. goals in Latin America - the exclusion of foreign influence and promotion of regional stability - were objectives of the active military, fiscal and political interventions in the Caribbean.”

The US had militarily intervened in multiple nations, here we would analyse the interventions in Nicaragua, Guatemala and Panama, where it sought to emulate its interests directly or indirectly.

INTERVENTIONS DONE BY THE UNITED STATES IN LATIN AND CENTRAL AMERICA:

The United States intervened in Nicaragua in 1912 to assist in the removal of José Madriz, the Liberal Party’s head. This was Washington’s way of securing its interests economically that focused on key resources and financial investments.

This is aptly put by Witzel, “The policy of the government of the United States in the present Nicaraguan disturbances is to take the necessary measures for an adequate legation guard at Managua, to keep open communications, and to protect American life and property.”

This saw Washington taking action and removing the Nicaraguan Government. In the second case we saw how the US intervened in Guatemala. In 1952, the US under Dwight D Eisenhower had given the CIA the power to authorise CIA’s for PBSuccess in Guatemala. This was due to the fact that Washington was worried about the influence of Communism in the nation.

In June 1954, Árbenz government was overthrown when Military Officer Armas' CIA-backed force invaded the country following a naval blockade during which Guatemala City was bombed and several attempts were made at isolating Guatemala internationally. This invasion force led by Carlos Castillo Armas is a combination of psychological warfare, bombing of Guatemala City and a naval blockade, convened by the CIA.

Scholar Moye argued, “Allen Dulles reported on a "Communist infection" in Guatemala that was headed towards a crisis. He emphasised the vulnerability (to the Soviets) of Latin America as it had become less friendly to the U.S. and less politically and economically stable.”

Finally in 1989 we saw Washington stepping up in Panama to depose the former president Manuel Noriega. With strong evidence incriminating him towards drug trafficking and to protect the US interests in the Panama Canal.

Professor Quigley argues, “In May 1989 the United States accused Panamanian authorities of harassing a number of U.S. military personnel, evacuated some military dependents from Panama, and claimed that the harassment violated the Canal treaties.”

With this in mind Washington engaged in military action and removed Noriega from power. All this led to Latin States being frustrated by the actions taken by the United States that resulted in the violation of its Sovereignty which, post globalisation, resulted in China stepping up in the region and building cooperation agreements with these states.

CHINESE BRI IN THE REGION:

The World Bank classifies the Belt and Road Initiative known as the New Silk Road as a development strategy for global infrastructure by the Chinese government to invest in about 150 nations and International organisations that began in 2013. Since the 2000s China has had a limited presence in the region with about 2% of the region's exports.

Slowly after careful development of bilateral ties with the nations, Beijing's trade over the next decade grew towards US$180 million and by 2021 the trade reached almost $450 million. It intends to utilise Latin America for obtaining crucial minerals such as Lithium and natural gas alongside obtaining agricultural produce to meet growing demand.

This is argued by Senior Associate Dadush, “At present, nearly 90 percent of Latin America’s exports to China are in mining and agriculture.”

China therefore to enhance its soft power capabilities has decided to work on infrastructural projects to develop the region. The cases of Brazil, Peru and Venezuela would be looked up. Brazil in particular has absorbed about $60 Billion in the past decade in Foreign Direct Index alone, with bilateral trade reaching almost $100 million between both sides. 

INFRASTRUCTURAL PROJECTS UNDERTAKEN BY CHINA IN THE REGION:

The main project that China plans in Latin America is the Bi-oceanic railway that would link Brazil till Peru connecting the Atlantic to the Pacific. It would help in enhancing economic connections and also enhancing the flow of merchandise and services. Brazil plays an important role in the plans China has for its world influence.

Scholar Pires articulates, “Brazil plays a prominent role in Latin America due to its territorial and population size. Its strategic geographical position allows the country to serve as a bridge between Latin American countries and those involved in the Bi-Oceanic Corridor, which is a crucial route that traverses Brazil and connects the Atlantic and Pacific oceans, passing through nations like Paraguay and Argentina towards Chilean ports.”

The Venezuelan oil sector has also seen significant investment from China, with companies like China National Petroleum Corporation (CNPC) taking part in exploration, production and refining ventures. This has not only enabled Venezuela to keep up its oil output but also expand it consequently ensuring China's burgeoning market has a reliable source of energy at all times; at the same time securing the cooperation it needed complete with financial support and technology transfer from Venezuela.

China helps Venezuela to meet its agricultural needs. This was initiated in 2010 wherein, “China’s CAMC Engineering Company Ltd. would develop rice fields two times the size of Manhattan in New York City. The project would create jobs for the area's 110,000 residents.” All this resulted in Beijing able to develop a strong foothold in the region.

CONCLUSION:

When Latin American countries became disillusioned with the U.S. interventionism and violation of sovereignty, China seized the opportunity to gain a stronger foothold in the region through its Belt and Road Initiative investing in infrastructure, and providing acquired critical resources such as lithium and natural gas.

By producing and nurturing economic ties, China has deftly expanded its influence and soft power in countries such as Brazil, Peru, and Venezuela. This strategy helps China balance the historical hegemony of the United States in Latin America.

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BY SANJAY GURURAJAN

TEAM GEOSTRATA

info@thegeostrata.com