This is potentially a significant development. Venezuela has always looked to China for politically-based support in the country's efforts to construct an anti-U.S. alliance in the region, and has hoped for unconditional support in this cause. China's decision to base financial aid on strictly economic criteria indicates that China does not wish to be seen as a generous financier of anti-American political intrigue, but simply as a solid economic partner for mutual benefit. China does not seem anxious to counter politically the recent efforts of the Obama administration to reach out to the countries to the south, culminating in the long-awaited decision to normalize relations with Cuba after more than fifty years. The implication is that China is prepared to leave the southern half of the continent in the American sphere of influence, counting on economic links to preserve her own interests there. The hint behind this is that the United States ought to do likewise and cease any political meddling in East Asia.

In this context it will be interesting to watch the progress of the proposed Chinese-led construction of a canal in Nicaragua, which has been seen as a potential threat to American interests in the Panama Canal further south. Coincidentally, it will be in Panama that the next Summit of the Americas will be held, to be attended for the first time by Cuban President Raul Castro. There we will learn what the United States has to offer Central and South America in the spheres of economic partnership and political and security cooperation. This could introduce a new era in relations between North and South, provided that President Obama can get his plans endorsed by a fundamentally hostile Congress.

My conclusion is that China does not wish to involve itself in intrigues in Latin America; it has economic interests there, largely connected to raw materials, and can represent a plausible alternative trading partner for these countries, should the United States begin to impose unbearable trading conditions on the region. But China's security concerns remain irrevocably fixed on Asia, and if the appearance of a Chinese challenge in South America inspires present and future U.S. administrations to concentrate more on their own continent, the Chinese will not mind at all.

The writer is a columnist with China.org.cn. For more information please visit: http://www.ccgp-fushun.com/opinion/timcollard.htm

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