Article summary
This article asks how the United States applies economic statecraft—positive "carrots" versus negative "sticks"—in response to Latin American countries’ engagement with China and offers a conditional mechanism for when each mode is more likely. The authors argue that U.S. policy in the region tends to emphasize economic engagement instead of coercion, especially with countries that are politically and economically aligned with Washington. They test this claim using a mixed-methods design that combines a focused case study of U.S.–Panama ties with a statistical analysis of how engagement with China relates to U.S. foreign assistance allocations in Latin America.