Chinese Rise in the Caribbean: What Does It Mean for Caribbean Stakeholders?

Abstract

work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent. AbstractChinese and Caribbean economic relations have deepened over the past decade and a half. The paper analyzes the impetus for China's foreign economic policy to reach out to developing regions such as the Caribbean, as well as highlights recent trends in merchandise trade and foreign direct investments, in particular between the Caribbean and China. Furthermore it indicates areas of potential benefits and risks, identifies some of the implications of these new South-South cooperation ties, and concludes with recommendations based on game theory insights to further deepen and more fully assure mutual benefit from the relationship going forward.JEL classification: C78, F00, O01

A Caribbean perspective on China–Caribbean relations: global IR, dependency and the postcolonial condition

“…Commodity exporters have enjoyed a growing demand for their products (Jamaica -aluminium oxide; Trinidad and Tobago -oil and gas; Suriname and Guyanaminerals and timber). Conversely, all Caribbean economies import finished manufactured goods from China, which has resulted in negative trade balances (Díaz 2016;Wenner and Clarke 2016). However, China cannot be seen as a buoyant 'metropole' in the classical dependency theory sense.…”

What LED to the Boom? Unpacking China's Development Cooperation in Latin America

“…When Chen Shui‐bian and his pro‐independence Taiwanese Democratic Progressive Party won the presidential election in 2000, China increased its use of targeted aid, grants, and loans that directly thwarted Taipei's efforts. This quid pro quo strategy was successful, as the cases of Dominica in 2004, Grenada in 2005, and Costa Rica in 2007 demonstrate (Wenner and Clarke 2016). Nevertheless, the election of President Ma Ying‐Jeou (2008–2016) marked a turning point in Taiwan's foreign policy stance toward China.…”