Author: United States. Congress. House. Committee on Foreign Affairs. Subcommittee on Asia and the Pacific

Publisher: Createspace Independent Publishing Platform

Published: 2015-12-23

Total Pages: 98

ISBN-13: 9781519617040

In 2013, Secretary John Kerry affirmed that the era of the Monroe Doctrine is over, effectively putting other countries, such as China, on notice that the United States would no longer contend their actions in our neighborhood, the Western Hemisphere. In contrast to Roosevelt's policy of the Good Neighbor in 1933, the U.S. has drifted instead toward benign neglect toward the very countries that have the greatest potential to impact the daily lives of the American people-those in Latin America and the Caribbean. China has taken notice, and China has stepped up into this vacuum of leadership. Today, China is weaving an intricate web of alliances in the Western Hemisphere through a vast array of diplomatic, economic, and military ties with multiple countries in the region. Although the United States remains the largest trading partner for Latin America, China is now the region's second-largest trading partner and has free-trade agreements with Chile, Peru, and Costa Rica. China has been buying up land and companies in the region, investing heavily in infrastructure and ports, as well as gobbling up a lot of rare earth minerals. From 2008 to 2012, the 10 largest Chinese mergers and acquisitions occurred in Brazil and Argentina, and other deals have occurred in Ecuador, Venezuela, and Peru. China has promised its investment in the region would hit $250 billion over the next 10 years. According to the Inter-American Dialogue, China has provided 16 loans valued at over $56 billion to Venezuela, 10 loans valued at $22 billion to Brazil, 10 loans valued at $19 billion to Argentina, and 12 loans valued at almost $11 billion to Ecuador. Chinese banks have effectively provided a lifeline to these governments, whose economic mismanagement and corruption prevent them from accessing Western institutions.