Policy

China Reinforces Ties With Cuba and Uruguay While Relations Cool With Panama

China Reinforces Ties With Cuba and Uruguay While Relations Cool With Panama

China has moved to consolidate its influence in Latin America by strengthening political and economic ties with Cuba and Uruguay, while adopting a markedly firmer stance toward Panama amid a growing dispute over strategic infrastructure. The contrasting approaches underline Beijing’s efforts to secure loyal partners in the region as competition with the United States intensifies.

In recent days, senior officials from Cuba and Uruguay have travelled to Beijing, signalling continued alignment with China at a time of heightened geopolitical tension in the Americas. Cuban Foreign Minister Bruno Rodriguez Parrilla met with Chinese leaders to reaffirm bilateral cooperation, becoming the second high ranking Latin American official to visit China this week. His trip followed the arrival of Uruguayan President Yamandu Orsi, the first regional head of state to visit Beijing since the United States launched military action against Venezuela earlier this year.

Chinese Foreign Minister Wang Yi used the meetings to emphasise Beijing’s commitment to what it describes as mutually beneficial partnerships based on respect for sovereignty and non interference. With Cuba, China pledged to increase economic assistance and expand cooperation in areas such as infrastructure, energy and development finance, providing Havana with a diplomatic and economic lifeline as it continues to face US sanctions and economic strain.

Uruguay, one of South America’s most stable economies, was offered deeper trade and investment cooperation. Beijing sees Montevideo as a valuable partner that can act as a bridge between China and the wider Southern Cone. Chinese officials highlighted opportunities for collaboration in agriculture, logistics and green energy, sectors where Uruguay has strong export potential and aligns with China’s long term supply chain interests.

The outreach to Havana and Montevideo comes as Washington shows renewed interest in Latin America, particularly following its intervention in Venezuela. Beijing appears determined to prevent erosion of its regional influence by reinforcing relationships with governments that have maintained a pragmatic or friendly stance toward China.

In contrast, China’s posture toward Panama has hardened. Beijing is currently locked in a dispute with Panamanian authorities over the operation of two strategic ports linked to global shipping routes. Chinese officials have expressed frustration with what they see as growing political pressure from the United States influencing Panama’s decisions. While China has not detailed retaliatory steps, the cooling relationship marks a departure from earlier engagement following Panama’s decision to establish diplomatic relations with Beijing in two thousand seventeen.

Analysts say the diverging treatment of Latin American countries reflects a more selective Chinese strategy. Rather than pursuing uniform engagement across the region, Beijing is prioritising partners it views as reliable while signalling that cooperation carries expectations of political consistency. Countries perceived as drifting back toward Washington’s orbit may find relations with China becoming more transactional or strained.

Latin America has become an increasingly important arena in US China rivalry, encompassing trade, infrastructure, energy and diplomatic recognition. For smaller nations, balancing relations between the two powers has grown more complex as global tensions spill into the region.

By reaffirming support for Cuba and Uruguay while taking a tougher line on Panama, China is sending a clear message. Loyalty and strategic alignment will be rewarded with investment and cooperation, while wavering partners may face a cooler reception. As competition with Washington deepens, Beijing’s diplomacy in Latin America is becoming sharper, more targeted and more openly geopolitical.