The value of Cuba’s tourist industry has always been measured against the eventual opening of relations with the United States as well as the potentially large market created by U.S. travelers and trade. Any direct investment in Cuba has always been tempered by this reality, foreign investors such as China will now have to calculate whether to partner with state–owned enterprises or find other means.

Improving U.S.-Cuba Relations have implications for China, but there is no need for strategic competition in Cuba and Latin America at large while Washington and Beijing share common interests in the region.

China and Cuba are longtime economic, military and political allies and last week’s arrival of Chinese General Fan Changlong in Havana caused speculation about their relationship. More serious is Cuba’s public insistence during the negotiations that the United States return the naval base at Guantanamo Bay.

Obama’s announcement to restore diplomatic relations with Cuba is not an absolute opening of trade, which is still privileged to U.S. agro-export, telecommunication, and financial industries. China on the other hand is Cuba’s second largest importer, with investments in petroleum, tourism, nickel, and infrastructure – all of which could prove beneficial once American firms and consumers are allowed to enter the Cuban economy.