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U.S. and China vie for influence in Bahamas after Panama

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U.S. and China vie for influence in Bahamas after Panama
February 18, 2025
Article Body Text Nayan Seth | 2025-02-18 19:42:00 Although China is addressing an infrastructure gap in the region, Caribbean nations are not expected to shift significantly toward Beijing, particularly amid a more assertive U.S. foreign policy. <h3>U.S. and China vie for influence in Bahamas after Panama</h3> WASHINGTON — As China pushes the Bahamas to join its “Belt and Road Initiative,” a senior U.S. diplomat publicly criticized Beijing’s “malign influence” in the region and reaffirmed that the Caribbean island nation remains a priority for Washington.While China is actively filling infrastructure gaps in the region, U.S. military experts believe China’s growing presence in the Bahamas creates “both peacetime and wartime concerns” for the United States.Kimberly Furnish, the U.S. chargé d’affaires in the Bahamas, took aim at China during a Feb. 14 event in Nassau, saying Beijing “promises much, but delivers little.” She reiterated that the Bahamas remains a priority for the U.S. “because this is our home.”Her remarks came days after Chinese Ambassador to the Bahamas Yan Jiarong urged the Bahamian government to sign on to the Belt and Road Initiative, a cornerstone of China’s $1 trillion global infrastructure plan.Meanwhile, former NFL star Herschel Walker has been nominated by U.S. President Donald Trump as the next U.S. ambassador to the Bahamas. If confirmed, Walker would be the first U.S. envoy to the country in over a decade.While the Trump administration previously pressured Panama to withdraw from the Belt and Road Initiative, analysts say the Bahamas — despite its proximity, just 50 miles from the U.S. coast — has been largely overlooked. Although China is addressing an “infrastructure gap” in the region, Caribbean nations are not expected to shift significantly toward Beijing, particularly amid a more assertive U.S. foreign policy, analysts say.China’s expanding footprintThe Bahamas, an archipelago of 700 coral islands in the western Atlantic, has a population of about 400,000 and covers an area smaller than the U.S. state of Connecticut. Known for its pristine beaches, the island nation is a popular destination for American celebrities.The economy of this former British colony relies heavily on tourism, with an estimated 11 million visitors expected in 2024. While the Bahamas boasts a per capita income of more than $35,000 — one of the highest in the Caribbean — it also has the region’s highest level of income inequality.In 1997, the Bahamas shifted diplomatic recognition from Taiwan to China, opening the door to Beijing’s financial aid, business investments, and the establishment of a large Chinese embassy.Hong Kong-based Hutchison Whampoa has operated the Bahamas’ main port Freeport since 2001 and is under scrutiny for its management of two ports in the Panama Canal.Chinese companies have also invested in major infrastructure projects, including highways, sports venues and resorts. One of the most significant deals was a $2.45 billion loan for Baha Mar, the country’s largest integrated resort.China’s growing presence in the Bahamas is part of its broader investment strategy in the Caribbean. Between 2005 and 2022, Beijing funneled more than $10 billion into the region.Meanwhile, Chinese telecom giant Huawei, banned in the U.S. and several other countries over security concerns, continues to operate in the Bahamas.U.S. concerns over China’s presenceAlexander Causwell, a researcher at the Caribbean Policy Research Institute, said China’s involvement in the region is not purely ideological but partly aimed at further isolating Taiwan from its remaining diplomatic allies in the Caribbean. Five countries in the region — Saint Lucia, Haiti, Belize, Saint Kitts and Nevis, and Saint Vincent and the Grenadines — continue to recognize Taiwan, rejecting Beijing’s overtures.“The only ideological issue is the Taiwan question,” Causwell said. “The five countries that recognize Taiwan are not eligible to participate in the Belt and Road Initiative.”While the Bahamas is not part of the initiative, China’s expanding presence in the country raises concerns “in peacetime and wartime,” said Evan Ellis, a research professor at the U.S. Army War College.“Chinese companies seek to dominate political and commercial influence and establish powerful networks with political and business figures,” Ellis said, adding that China’s involvement in digital infrastructure heightens “concerns over espionage.”In a potential U.S.-China conflict, China’s port facilities in the region could provide “logistical support for personnel and military forces capable of monitoring or disrupting U.S. operations in proximity,” he warned.Former U.S. Northern Command chief Gen. Glen VanHerck voiced similar concerns in 2023, warning that China was working to “gain a foothold only 50 miles from the U.S. East Coast.”Causwell said China’s activities in the Bahamas are unlikely to have immediate military implications but acknowledged that its involvement in critical infrastructure remains a concern for Washington.“Given the Bahamas’ proximity to the U.S., the integration of Chinese companies into its digital infrastructure presents more immediate risks,” he said.A long-time U.S. allyThe U.S. has long maintained close ties with the Bahamas because of their proximity. More than 80% of the 10 million tourists visiting the Bahamas each year come from the U.S., and Washington remains the country’s top trading partner, accounting for 84% of its imports in 2023.The U.S. and the Royal Bahamas Defence Force (RBDF) conduct joint maritime surveillance, and the U.S. Navy operates an underwater research facility on Andros Island. As the Bahamas serves as a major transit point for drug trafficking, U.S. law enforcement agencies support local authorities in counter-narcotics operations. U.S. Customs and Border Protection also provides pre-clearance for travelers heading to the U.S. at airports in Nassau and Freeport.While most U.S. private investors put their money in the region’s banking and tourism sectors, China has stepped in to fill its infrastructure gap, Causwell said.“Countries see Chinese companies as a convenient way to address their infrastructure needs,” Causwell said. “China builds highways and ports — projects that directly impact economic growth and connectivity in a globalized world.”Rasheed Griffith, director of the Caribbean Progress Studies Institute, said that the lack of U.S. investment in infrastructure is not a failure of U.S. policy.“The U.S. government doesn’t invest in foreign markets — U.S. private companies do,” Griffith said. “If they don’t see a good deal or opportunity, they simply won’t invest.” In contrast, he added, Chinese firms benefit from state subsidies that make their projects more viable, he said.However, Ellis said the U.S. has not given the Bahamas “the strategic attention it deserves given its geographic proximity.”While China has played an “outsized role” in the Bahamas’ development, many of its projects have been plagued by delays, substandard materials, and legal disputes, Ellis said.One such case involved the Baha Mar resort, a $4.2 billion mega-project in Nassau. In October, a New York court ruled that BML Properties, the Bahamian property management company, must pay $1.6 billion in damages to China Construction America Inc., the U.S. subsidiary of China State Construction Engineering Corp.The project was delayed in 2015, leading to bankruptcy and its eventual takeover by Hong Kong-based Chow Tai Fook Enterprises in 2017. Ellis described the situation as “systematic and intentional fraud aimed at securing control of the project for China.”Another controversy surrounds a cricket stadium China built in 2012. The facility deteriorated rapidly, with Beijing blaming the Bahamian government for poor maintenance. Despite this, China pledged to renovate the site.On January 23, Bahamian Prime Minister Philip Davis expressed gratitude to Beijing for funding the stadium’s “refurbishment” during a speech at a Lunar New Year celebration in Nassau.The Bahamian Ministry of Foreign Affairs declined to comment on China’s role in the country. The Chinese Embassy in Nassau did not respond to a request for comment from Voice of America.U.S. seeks to reassert influence in Western HemisphereThe Trump administration pledged to reassert U.S. geopolitical dominance in its backyard. Early this month, Secretary of State Marco Rubio issued a warning to Panama during his first overseas trip, urging the country to limit China’s influence over canal operations. Shortly after, Panama announced it would not renew its Belt and Road agreement with Beijing.During his first diplomatic trip, Rubio also visited El Salvador, Costa Rica, Guatemala, and the Dominican Republic.In an interview with SiriusXM Patriot radio host Scott Jennings, Rubio said one of his missions was to ensure the U.S. is not “getting run out of the Western Hemisphere, not waking up one day and finding out that China has more influence over our neighboring countries than we do.”“We can’t live in a world in which they have more influence and more presence than we do in the countries closest to us,” Rubio added.Causwell warned that if the Bahamas were to join the Belt and Road Initiative, it could face repercussions from Washington.“I can see a very real scenario where, if the Bahamas signs onto the Belt and Road Initiative, they would immediately face tariffs, which would be absolutely devastating for the Bahamian economy,” he said.To read the original story in Chinese, click <a href="https://www.voachinese.com/a/us-cina-bahamas-carribean-belt-and-road-initiative-20250217/7978302.html?withmediaplayer=1" target="_self" rel="" title="https://www.voachinese.com/a/us-cina-bahamas-carribean-belt-and-road-initiative-20250217/7978302.html?withmediaplayer=1">here</a>.
Content Type Article
Language English
NewsML Media Topics Arts, Culture, Entertainment and Media
Subtitles / Dubbing Available No
Network GNS
English Title U.S. and China vie for influence in Bahamas after Panama
Embargo Date March 12, 2025 11:48 EDT
Byline Nayan Seth
Brand / Language Service Global News Service