China’s Foreign Policy Toward Latin America: Context, Decision, Implementation

China’s policy toward Latin America and the Caribbean (LAC) has become more comprehensive and assertive since 2014. At the same time, the political situation has become tenser and more uncertain at the regional and global levels. Our primary goal in this article is to understand how these two dynamics intertwine. First, we discuss China’s grand strategy and how Latin America fits in. Second, we examine the institutional setting in which foreign policy is decided. Finally, we combine the contextual analysis with a principal-agent model to analyze implementation costs. In particular, the challenges to implementing the CELAC-China Joint Plan of Action for Cooperation on Priority Areas (2019–2021). When feasible, we considered the interests, capabilities, and attitudes (opinions and values) of Brazil, Mexico, Colombia, and Argentina. China has already begun to adapt its policies toward LAC. Whether or not the Latin American countries will be able to revitalize regional multilateral institutions remains uncertain. To achieve the agreed collective objectives expressed in the 2018 Santiago Declaration, China and CELAC members, specially in the context of the COVID-19 pandemic, need to address current challenges with strategic vision and close cooperation.