China’s Influence and Prestige On The Rise In Central America

With Daniel Ortega firmly embedded as Nicaragua’s leader, it was only a matter of time before Nicaragua gravitated nearer to China’s orbit. That it finally happened comes as no surprise, but the manner in which Nicaragua acted has raised many eyebrows around Central America and the world. In short, Nicaragua ended its long-running diplomatic and business relationships with Taiwan. Managua wasted little time in formally established diplomatic relations with the People’s Republic of China next. Shortly thereafter, the first batch of Chinese-donated COVID-19 vaccines arrived in Nicaragua. Over 1 million doses have been promised by Beijing, seemingly a handsome payment for Ortega having chosen China over Taiwan.

“The People’s Republic of China is the only legitimate government representing all of China and Taiwan is an undoubted part of the Chinese territory,” Nicaragua’s Foreign Minister Denis Moncada said in a televised announcement from capital city Managua last week. Nicaragua is not the first nation in Central America to sever ties with Taiwan in recent years. El Salvador and the Dominican Republic announced they would no longer recognize Taiwan. In the aftermath of Nicaragua’s decision, Honduras is now taking a hard look at the prospect of jumping ship as well.

Nicaragua’s decision is a double victory for Beijing. Taiwan’s diplomatic influence has been reduced and the Chinese beachhead in the Western Hemisphere expands. Outside of Cuba and Venezuela, which are both allies of Beijing, China is moving to gain favor and influence in other Central American countries. The Biden administration has been very slow in countering Chinese moves in America’s backyard. It should regard Nicaragua’s actions as a wake-up call at the very least. The fact that China is actively moving to minimize Taiwan’s circle of friendly nation-states takes the appearance of being a possible precursor to military action in the near future. In the bigger picture however, the Chinese inroads being made in Central America are the seeds of a challenge to US dominance in the Western Hemisphere at down the line.

Unfortunately, Washington doesn’t exactly see it this way. As a result, China’s inroads will expand unchallenged south of the border for some time.

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