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.

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.

China’s expanding engagement with Latin American and the Caribbean has mostly in the form of massive investment and financial assistance – “checkbook diplomacy” – which contrasts with the emphasis on governance issues like democracy, human rights, corruption, and the rule of law that comes with economic reliance on Washington.

Obama’s announcement to restore diplomatic relations with Cuba is not an absolute opening of trade, which is still privileged to U.S. agro-export, telecommunication, and financial industries. China on the other hand is Cuba’s second largest importer, with investments in petroleum, tourism, nickel, and infrastructure – all of which could prove beneficial once American firms and consumers are allowed to enter the Cuban economy.

US and China are engaging Latin America in different ways. While the US is attempting to rebuild relationships that have been strained recently, China has engaged in economic activities with countries in the region. Although China has invested heavily and is influential in the region, it has not led to increased tensions or competition between China and the US.