The great powers in Central America: US response to Chinese activities in the region

Abstract

Recent scholarship has argued that the People's Republic of China is paving its way into Central America, which is considered a US strategic area of interest. As the current evidence suggests, there will be a competition between the two great powers in the region. China has not only a business interest, but also a political one. In the past few years, Panama and El Salvador dismantled their diplomatic ties with Taiwan and recognized the PRC instead. It remains unclear whether the United States seeks to use its foreign policy tools to respond in the region. This article analyzes what types of policy tools the United States applies toward its allies to maintain its position in Central America. The first part reviews the literature on foreign policy toolkits and presents the research design. The empirical section then analyzes three existing forms of foreign policy tools (military, economic, and diplomatic) in the chosen countries. The article concludes that the United States uses its policy tools there, with certain limitations.