China’s entry into Latin America since the beginning of the century has altered regional dynamics, providing opportunities for Latin American and Caribbean nations to diversify beyond a traditional reliance on the U.S. market. As the United States pulls up hemispheric stakes on trade, China is already positioning itself to rush in.

Greatly due to the slowdown of the Chinese economy, economic growth in the commodity-driven economies of Latin America has fallen off about half from its high point. Although the situation is not yet dire, unless these countries find a new market, their commodity-driven economies are in for a prolonged period of slower growth.

The decline in global oil prices means China pays less for its Venezuelan oil, but on the other hand, the situation has made it harder for Venezuela to pay its other debts. The country is having a terrible time acquiring badly-needed foreign imports, such as medicine and food. The fault lies less with China’s loans, credits and investments, but the failure to use such resources in establishing a functioning, and far more dynamic, economy.

The history of U.S. engagement in global commerce is intricately intertwined with the Panama Canal. China, through a private investment partnership, has made plans to construct a similar canal through Nicaragua. Though the countries own politics will determine its viability, environmental and funding issues may derail it sooner.

Chinese mining companies in Ecuador and Peru recognize the social, environmental, and political issues which occur with significant development, and is giving back to the community by building bridges, roads, health clinics, sewers, and water systems.

Corruption, however, while a persistent illness with a debilitating and self-generating momentum, is not exclusive to China. If truth be told, China’s largesse abroad is also a major source of corruption and fraud, especially when it involves government-to-government transactions where transparency and accountability are absent.

The Chinese-backed Pacific Refinery, the largest project in Ecuador’s history, sheds light on Ecuador’s current trading relationships with the United States and China, and a region transforming with China’s loans and construction.

China and Cuba are longtime economic, military and political allies and last week’s arrival of Chinese General Fan Changlong in Havana caused speculation about their relationship. More serious is Cuba’s public insistence during the negotiations that the United States return the naval base at Guantanamo Bay.

With good reason, Chinese leaders wonder whether the pivot to Asia is the initial stage of a containment policy directed against their country. Similarly, U.S. officials are likely to become concerned about China’s attention and investment in Latin America, not helped by suspicions about China’s intentions in the South China Sea.

Chinese Premier Li Keqiang promised $50 billion in funding for a trans-oceanic railroad from Peru to Brazil, which politicians in Latin America have been dreaming to build for decades. However, an unforgiving geography and political disputes could prove challenging.