Costa Rica Navigates a Tightrope: Balancing US and Chinese Influence

Costa Rica finds itself increasingly caught between the geopolitical currents of the United States and China. Once envisioning a balanced relationship with both powers, the nation now appears to be recalibrating, leaning more decisively toward Washington, particularly under the current administration. This shift is impacting everything from trade and investment to critical infrastructure projects like the rollout of 5G technology.

From Panda Diplomacy to Pragmatic Realities

In 2007, Costa Rica formally established diplomatic ties with China, a move heralded as a modern era of opportunity. The relationship initially sparked optimism, with discussions of increased trade and investment. However, expectations have largely gone unmet. Trade with China remains significantly skewed, with Costa Rica importing far more goods than it exports. Investments have remained modest, averaging less than three million dollars annually in recent years.

The initial enthusiasm, symbolized by a proposed panda exhibit, has faded. As one former diplomat noted, the relationship has cooled considerably. Costa Rica now faces the challenge of maintaining a relationship with China without appearing overly reliant on, or subservient to, the United States.

The 5G Dilemma: A Flashpoint in US-China Competition

The development of Costa Rica’s 5G network has develop into a key point of contention. The current government, seemingly responding to explicit messaging from US officials, has effectively excluded Chinese companies from participating in the rollout, citing concerns over cybersecurity and adherence to international standards. This decision, while aligning with US interests, has been criticized as a “self-inflicted wound” by some, potentially limiting access to competitive and affordable technology.

US officials, including former Secretary of State Mike Pompeo and General Laura Richardson, have consistently warned against relying on China for critical infrastructure, raising concerns about potential security risks and data exploitation. These warnings appear to have resonated with the Costa Rican government.

“Amor con Amor Se Paga”: A Shift in Priorities

President Rodrigo Chaves’s acceptance of flights from the US carrying deported migrants, described as “amor con amor se paga” (love begets love), exemplifies the growing alignment with Washington. This move, while controversial, signals a willingness to prioritize US concerns and cooperation.

The Limits of Hedging

The concept of “hedging” – maintaining relationships with multiple major powers without becoming overly dependent on any one – is proving difficult for Costa Rica to implement. Experts suggest that Central American nations have limited room to maneuver due to intense pressure from the United States. Costa Rica is likely to be constrained to a low-key relationship with China, focused primarily on trade of consumer goods, while avoiding large-scale projects that could draw US ire.

The situation is further complicated by the lack of significant economic leverage Costa Rica holds with China. Unlike nations with valuable natural resources or large export markets, Costa Rica’s economic offerings are less compelling.

The Future of US-Costa Rica Relations

Costa Rica is actively strengthening its ties with the United States, exemplified by the opening of a new commercial embassy in Silicon Valley. This move underscores a strategic focus on attracting US investment and technological expertise. The US generates approximately 47% of Costa Rica’s exports, significantly outweighing the 3% accounted for by China.

The long-term implications of this shift remain to be seen. While closer ties with the US may offer economic benefits and security assurances, it also risks further marginalizing China and potentially limiting Costa Rica’s options in the future.

FAQ

• What prompted the shift in Costa Rica’s foreign policy? Increased pressure from the United States and a reassessment of the economic benefits of closer ties with Washington.
• What is the status of the 5G rollout in Costa Rica? Chinese companies have been effectively excluded from participating in the development of the 5G network.
• What is Costa Rica’s trade relationship with China? Costa Rica imports significantly more goods from China than it exports.

Explore further: Read about Oscar Arias’s visa revocation and criticism of Trump on NPR.

What are your thoughts on Costa Rica’s evolving relationship with the US and China? Share your insights in the comments below!