In the past few weeks, China’s relations with Latin America and the Caribbean have been making headlines. Newsweek published an exclusive story about plans to create a Chinese-run special economic zone on the island of Antigua that will have a port, a dedicated airline, its own customs and immigration procedures, and be able to issue passports. An international crypto services zone will offer opportunities to participate in cryptocurrency operations from mining to dealing.

The Americas Quarterly reported that China has expressed interest in building a port complex near the Strait of Magellan at the southern tip of South America, which is considered the most important natural passage between the Atlantic and Pacific Oceans. From there, according to the Americas Quarterly, Beijing could grow its presence in the region and also project influence in Antarctica.

And in late April, China held the first China-Latin American and Caribbean States Space Cooperation Forum, which opened with a congratulatory letter from Xi Jinping applauding the high-level space cooperation partnership in which he emphasized the benefits of marrying China’s mature space technology with the unique geographic advantage of the countries in the Latin America and Caribbean region.

To discuss Chinese interests in and strategy toward the Latin America and Caribbean region–known as the LAC–host Bonnie Glaser is joined by Leland Lazarus. He is the Associate Director of National Security at Florida International University’s Jack D. Gordon Institute of Public Policy and an expert on China-Latin America relations. He formerly served as the Special Assistant and Speechwriter to the Commander of US Southern Command and as a State Department Foreign Service Officer, with postings in Barbados and China.

Editorial Correction: Regarding the statement on the price of Huawei's equipment, it is approximately 30% cheaper than Nokia or Ericcson, rather than one-third the price.

Timestamps

[02:30] China’s Interest in LAC Countries

[04:44] Implementation of BRI in LAC Countries

[07:23] China’s Investment in Energy Development

[09:39] Huawei’s Penetration into LAC Countries

[11:57] Role of Perú in Beijing’s Regional Strategy

[14:56] China-LAC Cooperation in Space

[20:56] Receptivity of China to LAC Countries

[25:30] How should the US compete against China in LAC?

The Biden administration maintains that China is the only country with both the intent to reshape the international order and the power to do so. One part of China’s economic statecraft toolkit involves state-directed investments through high profile projects in the Belt and Road Initiative which are funded by loans through Chinese development banks. But the role and impact of Chinese companies that provide equity funding for FDI often receive less attention. Does Chinese foreign direct investment (FDI) have illiberal effects on recipient countries. And is this goal part of China’s economic statecraft and foreign policy strategy.

To address these questions and more, host Bonnie Glaser is joined by Dr. Jan Knoerich. He is the author on a chapter of Chinese FDI on the recent Oxford publication “Rising Power, Limited Influence”, a collection of essays on the effects of Chinese investment in Europe. Dr. Knoerich is a senior lecturer on the Chinese economy for the Lau China Institute at King’s College in London. He is an expert on the Chinese economy, FDI, and international investment law and policy.

Timestamps

[01:38] Evolution of Chinese Foreign Investment Strategies

[04:48] Chinese Firms Undertaking Foreign Direct Investment

[09:16] Impacts of Chinese FDI: Five Dimensions

[18:17] Reasons Why Chinese Firms are Viewed with Suspicion

[21:06] Impacts of Chinese FDI Projects in Europe

[24:59] Evidence of Chinese FDI Exerting Political Influence

When Hong Kong was handed over to China by the United Kingdom 1997, the city was given a mini-Constitution called the “Basic Law.” Article 23 of the Basic Law states that Hong Kong shall enact laws of its own to prohibit various national security offenses. The law did not pass, however, and was scrapped after mass protests in 2003. And in 2020, the Central Government of the People’s Republic of China (PRC) imposed a separate national security law on Hong Kong, citing the city’s delay in acting on Article 23.

This year on March 19th, Article 23 was passed unanimously by the city’s parliament and it came into effect just days later. The law covers five types of crime: treason, insurrection and incitement to mutiny, theft of state secrets, and espionage, sabotage, and external interference. Critics say that Article 23 could lead to even further erosions of civil liberties in Hong Kong.

To discuss Article 23 and its implications, host Bonnie Glaser is joined by Dr. Eric Yan-ho Lai. Dr. Lai is a Research Fellow at the Georgetown Center for Asian Law, an Associate Fellow at the Hong Kong Studies Hub of the University of Surrey, and a member of the Asian Civil Society Research Network.

Timestamps

[01:47] Understanding PRC Definitions Used in Article 23

[03:37] Why was Article 23 passed now?

[05:23] Compressed Timeline for Unanimous Approval

[09:05] Shift in Risk Assessment for Multinational Corporations

[12:03] Precedents for Targeting Diaspora Communities

[14:17] Reactions to Article 23 from the International Community

[15:54] What are some concrete actions that could be taken to signal concern?

[17:55] Do the PRC and Hong Kong care about international perceptions?

[19:36] Implementation of Article 23 Moving Forward

[21:28] Passage of Additional Security Legislature

[22:57] Forecast for the Future of Hong Kong