AidData director discusses Taiwan's diplomatic struggles in Latin America

The U.S. Senate Committee on Foreign Relations convened a crucial subcommittee hearing on March 26, 2025, focusing on the growing influence of the People's Republic of China (PRC) and the precarious status of Taiwan's diplomatic allies in the Western Hemisphere. Central to the discussion was the urgent need for the U.S. to bolster its commitment to Taiwan amid increasing pressure from Beijing.

Samantha Custer, director of policy analysis for AidData, highlighted the strategic battleground that Latin America has become for both Taiwan and China. With Taiwan's diplomatic allies dwindling from 22 to just 12 over the past decade—seven of which are in Latin America—Custer emphasized the importance of U.S. support to prevent further defections. "Taiwan's economic statecraft has been outmatched in Latin America," she stated, pointing to China's extensive investment in the region, which has included nearly 2,500 development projects worth $300 billion.

Custer outlined three key strategies for the U.S. to assist Taiwan in retaining its allies: expanding and co-financing development efforts with Taiwan, renewing trade preferences that benefit Taiwan's allies, and promoting collaboration between American, Taiwanese, and Latin American firms to strengthen supply chains. She noted that countries like Paraguay and Guatemala still recognize Taiwan due to ideological affinities and potential economic opportunities, but they face significant pressure from China.

The hearing underscored the critical need for coordinated U.S. efforts to counteract China's influence and support Taiwan's diplomatic standing. As the geopolitical landscape shifts, the stakes for Taiwan and its remaining allies in the Western Hemisphere have never been higher.