Why Chinas Nicaragua move is as much about the US as it is about Taiwan

Publish date: 2024-05-07

Li Da-jung, professor of international relations and strategic studies at Tamkang University in Taipei, said the US was facing a rival for influence in the region.

“Beijing has in the past few years wooed away four … Taiwan allies ... in Latin America. This definitely will help increase its influence in this part of America which is considered the US backyard,” he said.

The US has long been concerned about increasing Chinese influence in the region. When El Salvador established ties with Beijing, its officials warned about China’s intentions to turn the La Union commercial port in El Salvador’s east into a “military base”.

Weeks later, Washington recalled its top diplomats in the Dominican Republic, El Salvador and Panama over their decisions to no longer recognise Taiwan.

In May, the US labelled 17 Central American politicians as corrupt, including a close aide of El Salvadoran President Nayib Bukele and his former security minister.

Bukele praised China’s US$500 million investment in public investments in El Salvador “without conditions” and the nation’s Congress ratified a cooperation agreement with China which was signed in 2019 and that included US$62 million investment in a water purification plant, a stadium, a library and other infrastructure.

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‘One China’ explained

‘One China’ explained

The announcement by Nicaragua to recognise Beijing came on the same day as the US State Department slapped sanctions on Nestor Moncada Lau, a national security adviser to Nicaraguan President Daniel Ortega, over his alleged operation of an import and customs fraud scheme to enrich members of Ortega’s government.

US State Department spokesman Ned Price said Nicaragua’s decision to break diplomatic ties with Taiwan did not reflect the will of the Nicaraguan people because its government was not freely elected.

Wang Jianmin, a Taiwan affairs specialist at Minnan Normal University in Fujian province, said the sanctions could be part of the reason Nicaragua had switched to Beijing.

“China can back up Nicaragua in the United Nations as a UN Security Council permanent member and also help with the nation’s economic development … This is useful for China to improve relations with Central America.”

But Wang said other Central American nations might not follow Nicaragua’s decision because US influence was still significant.

China was Nicaragua’s third-biggest trading partner in 2020, following the US and Mexico, with a trading volume of US$913.35 million.

There have been reports that Nicaragua and a Chinese company were discussing a deal to build and operate a Nicaraguan canal, but officials from both sides have been quiet on the issue.

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Taiwanese Youtuber on quest to visit all allies on Taiwan’s shrinking list

Taiwanese Youtuber on quest to visit all allies on Taiwan’s shrinking list

Guo Cunhai, director of the Centre for China and Latin America Studies in Beijing, said the establishment of diplomatic relations between Beijing and Managua would accelerate economic and trade relations between the two countries, especially in developing infrastructure and people-to-people exchanges.

But he said the Chinese government was not involved in the Nicaraguan canal project, and China was not expected to develop the project in the future.

“The risks of building a large canal in Nicaragua are high,” Guo said, adding the project would also adversely affect relations between China and Panama.

Activists call for Nicaragua canal project to be axed as Chinese tycoon’s cash runs dry

Shi Yinhong, an international relations professor at Renmin University, said China’s establishment of diplomatic ties with Nicaragua was a response to Taiwan’s pushing an independence agenda.

Beijing regards Taiwan as a breakaway province and opposes formal relations between the island and other nations.

Shi said more investment, including state-run capital, would reach Nicaragua in the foreseeable future.

Zhang Wensheng, deputy dean of the Taiwan Research Institute at Xiamen University, said: “The number of diplomatic allies of Taiwan is dwindling.”

Additional reporting by Amber Wang and Lawrence Chung

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