China buys into Caribbean
A brand new $ 35 million stadium opened here in the Bahamas a few weeks ago, a gift from the Chinese government. The tiny island nation of Dominica has received a grammar school, a renovated hospital and a sports stadium, also courtesy of the Chinese. Antigua and Barbuda got a power plant and a cricket stadium, and a new school is on its way. The Prime Minister of Trinidad and Tobago can thank Chinese contractors for the craftsmanship in her official residence.
China’s economic might has rolled up to America’s doorstep in the Caribbean, with a flurry of loans from state banks, investments by companies and outright gifts from the government in the form of new stadiums, roads, official buildings, ports and resorts in a region where the United States has long been a prime benefactor.
The Chinese have flexed their economic prowess in nearly every corner of the world. But planting a flag so close to the United States has generated intense vetting — and some raised eyebrows — among diplomats, economists and investors.
“When you’ve got a new player in the hemisphere all of a sudden, it’s obviously something talked about at the highest level of governments,” said Kevin P. Gallagher, a Boston University professor who is an author of a recent report on Chinese financing, The New Banks in Town. Most analysts do
China’s economic might has rolled up to US’ doorstep in the Caribbean, with a flurry of loans from state banks and investments by firms
not see a security threat, noting that the Chinese are not building bases or forging any military ties that could invoke fears of another Cuban missile crisis. But they do see an emerging superpower securing economic inroads and political support from a bloc of developing countries with anaemic budgets that once counted almost exclusively on the United States, Canada and Europe. China announced late last year that it would lend $ 6.3 billion to Caribbean governments, adding considerably to the hundreds of millions of dollars in loans, grants and other forms of economic assistance it has already channelled there in the past decade.
Unlike in Africa, South America and other parts of the world where China’s forays are largely driven by a search for commodities, its presence in the Caribbean derives mainly from long- term economic ventures, like tourism and loans, and potential new allies that are relatively inexpensive to win over, analysts say.
American diplomatic cables released through Wikileaks and published in the British newspaper the Guardian quoted diplomats as being increasingly worried about the Chinese presence here “less than 190 miles from the US” and speculating on its purpose. One theory, according to a 2003 cable, suggested that China was lining up allies as “a strategic move” for the eventual end of the Castro era in Cuba, with which it has strong relations. But the public line today is to be untroubled. “I am not particularly worried, but it is something the US should continue to monitor,” said Dennis C. Shea, the chairman of the US- China Economic and Security Review Commission, a bipartisan Congressional panel. But, he added, “With China you have to be wary of possible policy goals behind the effort.” By arrangement with the New York Times