ABSTRACT
This chapter discusses the dramatic changes in Beijing’s foreign policy toward Latin America. It focuses on the People’s Republic of China’s (PRC) interest, its strategy and tactics, its propaganda and diplomatic activities, and its economic relations. Three important factors have limited the PRC’s economic relations with Latin America. First, Beijing’s commercial activities in the region have both economic and political objectives; in many instances, the political purpose dominates trade and foreign aid. Second, while Latin America and other Third World nations need technological skills, they also need a lot of capital, especially foreign capital. Third, Beijing has little to offer in exchange for the commodities; and there is not much demand for Chinese products in Latin America. Beijing has created important international issues which it has skillfully utilized for its own diplomatic gain. In its drive to unite the developing countries of the Third World, Beijing has met with considerable success, by identifying itself as a Third World nation.
