An economic crisis in Cuba’s communist-controlled economy is putting significant strain on relations with its ideological ally, China, prompting an unexpected and tense rift. Despite ongoing infrastructure issues and the impact of damaging U.S. embargoes, Cuba’s government stubbornly resists free market reforms, choosing instead to cling to its ideological stance.
China’s Patience Wears Thin
Cuba’s reluctance to embrace market-oriented changes has led to a noticeable drop in Chinese imports, falling from $1.7 billion in 2017 to $1.1 billion in 2022. According to the Financial Times, Chinese officials are increasingly “perplexed and frustrated” by Cuba’s refusal to modernize its struggling economy. Economists and diplomats familiar with the situation have noted China’s growing exasperation.
While China publicly supports Cuba’s commitment to a vertically planned economy, privately, Chinese officials have urged the Caribbean nation to take a page from their own book—adopting reforms that blend communist ideology with elements of free-market dynamics.
Economic Collapse and Blackouts
Cuba’s dire economic state has reached a new low. The country is now in its fourth consecutive day without power, affecting nearly 10 million residents. Government officials in Cuba have laid the blame on the U.S. embargo for the deteriorating energy situation.
A spokesperson for the White House National Security Council countered, stating, “The United States is not to blame for today’s blackout on the island, or the overall energy situation in Cuba.”
The lack of power has led to growing discontent among Cuban residents, with many protesting by banging pots and pans and obstructing traffic to express their frustration.
Government’s Hardline Stance
Despite public discontent, Cuban President Miguel Diaz-Canel has taken a hardline stance, warning that authorities will not tolerate disorder. “not going to allow acts of vandalism and much less alter the tranquility of our people,” he declared, indicating that the government would act decisively to quell further protests.
Adding to Cuba’s woes, Hurricane Oscar recently made landfall, which is expected to further compound the nation’s ongoing economic difficulties.
