Since slightly more than half of those countries that recognize Taiwan are located in Latin America and the Caribbean –LAC–, Taipei and Beijing have been striving to achieve diplomatic recognition in the region, using development aid as a foreign policy tool to gain diplomatic partners. This article analyzes statements by governmental officers and previous literature, as well as quantitative development aid data, in order to assess the impact of Taiwanese aid program in LAC. It concludes that Taipei has indeed some leverage to contain China’s advancement in the region, due to its status of democratic country, its history of successful development and especially its strong ties with Washington. Nevertheless, in the face of China’s renewed efforts in imposing its “One China Policy”, Taiwan’s possibilities to avoid diplomatic isolation remain uncertain.
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