El Salvador’s change will likely contribute to the sense of urgency of the remaining states that recognize Taiwan to follow the Salvadoran example and close a deal with the PRC before the opportunities for negotiating compensation for doing so dry up.
Many Latin American states recognize the appeal of national space programs, even if they lack the capital and material capacity to develop them. For many, space represents yet another tool for development.
Chinese investment and lending in the region declined last year, in part reflecting skittishness over the deteriorating situation in Venezuela. Despite the drop, Chinese state-to-state finance continues to outstrip the World Bank, IDB and CAF.