The United States on Thursday threatened to pull out of the annual meeting of the Inter-American Development Bank in China next week if Beijing refuses to allow a representative of Venezuelan opposition leader Juan Guaido to attend.

American markets dominate the Mexican economy and will continue to do so for many decades, but the combination of China’s growing presence in Mexico and the election of a leftist firebrand to the Mexican presidency could further strain U.S. relationships with both of these countries.

The United States did not push Latin America and the Caribbean into China’s arms, but by pulling back, it created space for others to fill. Now, it appears that the United States seeks a course correction.

China’s most recent strides in Latin America are due in large part to a series of carefully crafted policies that advance China’s own interests while addressing Latin America’s top development priorities. The U.S. risks losing influence, competitiveness, and control in Latin America.

Is the Monroe Doctrine back?

The United States, China, and other nations are now faced with the decision as whether they will work together to put Venezuela on a more sustainable political and economic course. At some point soon, Beijing will have to determine whether China stands a better chance of realizing its fundamental interests by supporting Maduro or by working with the international community to press for change.

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.