Tooze on China's strategy

Created Wednesday 01 April 2026

In another piece today I looked at the US drug war pivot in Latin America to contain Chinese influence in the region. But what is China doing in response?

In general it does not appear to be doing much. The Wall Street Journal in January noted its muted response to recent events in Latin America. In response to Hutchinson's controversial exit from managing the Panama canal, China called for "a non-discriminatory environment" for all corporations. Meanwhile in response to US machinations in Venezuela, it was going to set up a task force.

Well, noted economic historian Adam Tooze pontificated on China this week in the Financial Times. Which may help illuminate China's muted response to US aggression in Latin America and around the world.

Tooze notes five polices that China could enact if it wished to grasp the hegemonic moment as the US lashes out in the Middle East. Ultimately though he posits it would be too dangerous. Instead, China bides its time. Waiting for the US to further weaken its credibility, as Russia, bogged down in Ukraine becomes more dependent on it's Sino neighbour.

In terms of Latin America, it looks like China will bide its time there too. While it has integrated deeply into the regions economies, especially in Mexico, its lack of military and political partners limits its options. It may have to accept its containment by the US, for the time being.

• Source: Financial Time 31/03/26 p.25