Trump has squeezed China in Cuba, Panama and Venezuela — could Nicaragua be next?
An SCMP analysis argues that the Trump administration's strategy of squeezing China economically in Latin America, after Cuba, Panama and Venezuela, may now turn to Nicaragua. Beijing's response is limited to diplomatic outreach to protect its port and telecom investments across the continent.
An SCMP analysis argues that, after sanctioning Cuban President Diaz-Canel, sidelining Chinese partners from Panama Canal operations and tightening control over Venezuelan oil revenues, the Trump administration's next target in Latin America could be Nicaragua. Managua has in recent years opened the door wide to Chinese telecom and port investment.
White House sources told SCMP that a possible new Nicaragua sanctions package could include customs rules on transit trade, mandatory registration of joint ventures and individual human rights-based designations. Beijing has framed its Latin American investments as "win-win" cooperation and has stepped up bilateral diplomacy.
Managua said the pressure amounts to interference in its internal affairs and that development plans will continue. In the weeks ahead, US Treasury actions, the intensity of China's Latin American diplomacy and the reaction of regional currencies will be the key items to watch. This is not investment advice.
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