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.

As the White House said, the U.S. president’s Cuba policy “now allows us to more effectively improve the lives of the Cuban people, advance our interests and values, and build broader ties of cooperation across the Americas”. It’s a U.S. policy reversal that also serves to cement American influence across the region.

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.

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.