US casts Cuba as China-linked threat while Latin America shifts alliances

In May 2026, US-China competition in Latin America intensified. The US indicted former Cuban leader Raul Castro for the 1996 downing of civilian aircraft, while President Trump and Secretary Rubio framed Cuba as a growing national security threat linked to China and Russia—despite still advocating for a negotiated political transition. Meanwhile, Panama's President Jose Raul Mulino rejected claims of US pressure shaping his handling of a dispute over ports near the Panama Canal, as the country sought to stabilize relations with Beijing and renew a key maritime agreement.

Argentina is on the verge of settling its debt with China's central bank, effectively ending a $5 billion currency swap lifeline that sustained the nation through years of financial turmoil. The winding down of this lifeline places Argentina at the center of a geopolitical tug-of-war between Washington and Beijing, with implications for Latin America's economic alignment. These developments highlight a shifting regional dynamic where smaller nations navigate between superpower interests.