MEXICO CITY — Honduras' decision to sever diplomatic relations with Taiwan in favor of China is the latest sign of China's growing influence in Latin America.
For decades, the Asian superpower has poured billions of dollars into investment and infrastructure projects across the region. That spending is paying off amid current geopolitical tensions between China and the Biden administration.
Honduras' decision marks the second diplomatic coup in a week for China, which last week brokered an agreement between Iran and Saudi Arabia to restore diplomatic relations.
This leaves Taiwan recognized by only 13 countries. But some of Latin America's few remaining countries, including Paraguay and Guatemala, pledged Wednesday to maintain support for Taiwan.
Honduran Foreign Minister Enrique Reyna told The Associated Press on Wednesday that Hondurans are “grateful” for the existing relationship with Taiwan, but that economic ties with China ultimately forced the government to sever ties. That's what he said.
“These are political decisions. The world is moving in this direction,” Reyna said. “We understand that it is a complex decision, but Honduras' foreign policy should aim to benefit its people. We believe that this step will benefit the country.”
The Central American country follows El Salvador, Nicaragua, Panama and the Dominican Republic in turning its back on Taiwan.
Honduras' announcement on Tuesday was a blow to the Biden administration, which has been trying to persuade regional countries to stick with Taiwan without much success. Taiwan, a U.S. ally, has asserted its sovereignty claims at the same time as Chinese President Xi Jinping insists the island is firmly under Taiwan's control.
In that sense, Tuesday's announcement also exemplifies how the U.S. government is “losing its grip” on Latin America, said David Castrillon-Kerrigan, a research professor who studies China-related issues at Colombia's Externado University. Stated.
“For a country like Honduras, not recognizing Beijing meant a missed opportunity,” Castrillon-Kerrigan said. The United States “is steadily losing influence in all areas, especially economically, but also diplomatically, politically, and culturally.”
He left the island, leaving behind a dwindling number of allies. Reyna told the AP that the Biden administration “must understand and respect” Honduras' needs and decisions.
However, some countries, such as Paraguay and Guatemala, remained steadfast in their support for Taiwan. Guatemalan officials reiterated that the government “recognizes Taiwan as an independent nation that shares democratic values.”
Over the past two decades, China has slowly carved out its own space in Latin America by pouring money into the region and investing in large-scale infrastructure, energy and space projects.
From 2005 to 2020, China invested more than $130 billion in Latin America, according to the U.S. Institute of Peace. Trade between China and the region is also rapidly increasing and is expected to reach more than $700 billion by 2035.
This investment led to an increase in China's power and allies.
In Honduras, this came in the form of a hydroelectric dam project in central Honduras built by the Chinese company SINOHYDRO with approximately $300 million in loans from the Chinese government.
Meanwhile, in many countries, the U.S. government has not intervened in projects of similar scale.
The investment is seen by many as a positive step for countries that often struggle to attract development funding, but others, like June Teufel, a political science professor at the University of Miami, are worried that China's rise in power will Some are concerned about the long-term ramifications it could have. .
Teufel said China is using its new influence as a “diplomatic tool.”
Rising debt in developing countries is hurting Chinese investment in many countries in Africa and Latin America. In many cases, infrastructure projects can only be repaired by Chinese companies, leading to high bills, Teufel said.
“This is like a drug dealer telling a potential customer that the first dose is free,” Teufel said. “It would force other countries to abandon Taiwan, which Taiwan has long wanted, and it would deprive Taiwan of all its remaining allies.”