By: Daniel Nardini
With the deepening Cuba-China relationship, Cuba is now importing a record number of consumer goods made in China. Trade between the two countries now total U.S. $777 million a year—$560 million being Chinese-made goods to Cuba. What this means is that Cuba does not need trade with the United States should the U.S. government finally lift economic sanctions with Cuba. Because China is the second largest economy now, this means that the Cuban government no longer has to rely on the U.S. government lifting sanctions from its trade with Cuba. The Cuban government can go through China for trade with the United States indirectly since China has extensive trade networks with the United States and all over the world. This means that if the Cuban government needs vital components for building computers, it need look no further than China. If ordinary Cubans need everyday consumer products like refrigerators, radios and TVs, cell phones and computers, toys and clothes, iPads and iPhones, then they need to look no further than China.
Since China has become one of the world’s factory facilities, Cuba and the Cuban people do not have to be as concerned about the U.S. government sanctions as before. There is no way for the U.S. government to penalize China—with 80 percent of everything in our major department stores being made in China as well, we would be crippling the U.S. economy. Along with China, consumer goods being made in Vietnam (which are even cheaper than those being produced in China) are also finding their way into Cuba. Add to this brisk trade with Brazil for raw and mineral resources and Venezuela for its oil and steel, and Cuba is not in any danger of an economic collapse. What the Cuban government is trying to do is reform its economy and to an extent society. This does not mean that the Communist Party of Cuba will give-up power. Far from it, it simply wants to change certain things to make its economy perform better and help make its society function more efficiently.
But the Cuban government’s core control will remain intact, and China will be leading the way. China is using Cuba as a far-off economic base for watching the United States. It is possible that the Chinese government may also use Cuba as a military base overlooking the United States. There is no question that the U.S. sanctions against Cuba have not only failed but means that the United States will have no influence or very little at best in Cuba. In my view, the window for American opportunity in Cuba is now closed, and the lifting of sanctions will not change it. China is on the ascendancy in Cuba, and China’s shadow is now being cast far into Latin America.
Cuba’s Cheap Goods Made in China
By: Daniel Nardini
Since China has become one of the world’s factory facilities, Cuba and the Cuban people do not have to be as concerned about the U.S. government sanctions as before. There is no way for the U.S. government to penalize China—with 80 percent of everything in our major department stores being made in China as well, we would be crippling the U.S. economy. Along with China, consumer goods being made in Vietnam (which are even cheaper than those being produced in China) are also finding their way into Cuba. Add to this brisk trade with Brazil for raw and mineral resources and Venezuela for its oil and steel, and Cuba is not in any danger of an economic collapse. What the Cuban government is trying to do is reform its economy and to an extent society. This does not mean that the Communist Party of Cuba will give-up power. Far from it, it simply wants to change certain things to make its economy perform better and help make its society function more efficiently.
But the Cuban government’s core control will remain intact, and China will be leading the way. China is using Cuba as a far-off economic base for watching the United States. It is possible that the Chinese government may also use Cuba as a military base overlooking the United States. There is no question that the U.S. sanctions against Cuba have not only failed but means that the United States will have no influence or very little at best in Cuba. In my view, the window for American opportunity in Cuba is now closed, and the lifting of sanctions will not change it. China is on the ascendancy in Cuba, and China’s shadow is now being cast far into Latin America.