By Barbara Slavin, USA TODAY Fri May 5, 7:11 AM ET
China is expanding military and economic ties throughout Latin America, taking advantage of a wave of anti-American candidates who have come to power and a U.S. law barring military training and aid to a dozen Latin countries.
"China's profile in the region has been ratcheting up sharply," said Thomas Shannon, assistant secretary of State for Western Hemisphere Affairs. Shannon traveled to China last month to discuss with Chinese leaders their country's growing role in the United States' backyard. He was the first U.S. official in his position to do so. "We thought it was a good time to talk," Shannon said.
China's trade with Latin America was $40 billion in 2004, a 54% increase over 2003, according to the Inter-American Dialogue, a Washington think tank. China is investing more in Latin America than any region outside Asia, according to a 2005 study by the consulting firm Booz Allen Hamilton.
Army Gen. Bantz Craddock, head of U.S. Southern Command, told the House Armed Services Committee in March that China's military is stepping up its involvement, "offering resources to cash-strapped militaries and security forces with no strings attached."
China has had exchanges of senior defense officials with Ecuador, Bolivia and Chile and provided military aid and training to Jamaica and Venezuela, according to Jose Ruiz, a spokesman for Southern Command.
China's ambassador to the United States, Zhou Wenzhong, said U.S. fear of China's role in the region is "unnecessary."
He told the Council of the Americas on Wednesday that Chinese investment in the region is $4 billion, compared with $300 billion by U.S. companies, and that "a stable and prosperous Latin America is in the shared interests" of China and the United States.
However, in 2004, Chinese President Hu Jintao announced that China planned to invest $100 billion over 10 years in Latin America.
China sees Latin America as an important source of natural resources, including oil, nickel, copper and iron ore, as well as foodstuffs such as soybeans.
China's growing role coincides with elections that have brought populists and leftists to power in Venezuela, Brazil, Argentina, Uruguay and Bolivia. A populist is leading in Peruvian elections this month, and Mexico and Nicaragua may choose candidates hostile to the United States later this year.
A 2002 U.S. law bars the United States from giving military aid and training to countries that have refused to promise immunity to U.S. servicemembers from prosecution by the International Criminal Court.
The Bush administration refuses to participate in the Netherlands-based court, which was founded in 1998 to prosecute crimes against humanity. The U.S. government worries that U.S. personnel might be subject to unfair prosecution.
Under Bush administration urging, 98 countries have promised immunity to Americans. Twelve countries in the hemisphere - Mexico, Barbados, Bolivia, Brazil, Costa Rica, Ecuador, Paraguay, Peru, St. Vincent and the Grenadines, Trinidad and Tobago, Uruguay and Venezuela - have refused. Those countries had in the past received U.S. training or aid, Ruiz said.
Secretary of State Condoleezza Rice said on a recent trip to the region that the result of the law has been "the same as shooting ourselves in the foot."
Shannon said the Bush administration is considering exercising a provision in the law that allows the government to waive the rule and restore military aid. "The proper response (to China's expansion) is to make sure we're engaged in the region," Shannon said. "Our intention is to work with everybody who wants to work with us."
China is expanding military and economic connections in Latin America, including countries that are barred by a U.S. law from receiving military training and aid from the U.S. itself.

"China's profile in the region has been ratcheting up sharply," said Thomas Shannon, assistant secretary of State. 

U.S. Gen. Bantz Craddock, head of U.S. Southern Command, advised the House Armed Services Committee that China's military is increasing its involvement, "offering resources to cash-strapped militaries and security forces with no strings attached." 

According to Jose Ruiz, a spokesman for Southern Command, China has participated in exchanges of senior defense officials with Ecuador, Bolivia and Chile and has provided military aid and training to Jamaica and Venezuela.

Further, as reported by Jane's Defense Weekly, Caracas may be close to finalizing a deal with China to procure a new Chinese national defense communications network.  The network is a satellite based system, incorporating strong encryption and other security measures.