As usual, President Trump has a way of talking about things and walking a few steps ahead of us. Enter Panama and all the talk about Canada. In this case, the issue is China in Panama is a problem, to say the least, given the commercial and military traffic that goes through there.

Honestly, it's about time that we start pushing back on the role of China. According to Cristina Guevara, a Latin America policy analyst and writer, the time is now. This is how she put it:

Chinese investments, such as the $3.5 billion Chancay Port project, address concrete needs in Latin American countries, offering solutions that the U.S. has not matched. Its control over key infrastructure, like ports surrounding the Panama Canal, not only enhances trade logistics and fosters economic growth in the region, but also may pose threats for the U.S., amplifying concerns about Chinese military influence in Latin America.

The Chinese economic model, heavily reliant on state subsidies and underpricing, currently makes Chinese goods and investments attractive. Regardless of ideology, governments across Latin America, like Argentina under Milei, have engaged Beijing for trade and investment. The U.S. lacks similar state-backed enterprises but could leverage tools like the Development Finance Corporation, or DFC, more effectively.

The Chinese economic model may be unsustainable due to over-reliance on state subsidies, rising debt and an aging population. Internal challenges like slowing growth, unemployment, inequality and dissent could further hinder China’s global ambitions.

It’s true that the model is unsustainable but giving away loans and building infrastructure is a good way of spreading China’s influence.

So the Trump/Rubio team must be assertive in pushing the idea that it pays to work with the U.S. rather than China. I agree that more trade is the answer but reminding local governments that we’ve been neighbors longer than China is important too. My guess is that most Latin Americans trust us more and still have serious questions about their new friends the Chinese.

Good to see that Trump is looking south and seeing too much China.

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Image: Pexels/Michael D. Camphin