China Steps In as Cuba’s Main Backer, Overtaking Russia and Shifting Power Near U.S. Shores

(Analysis) Cuba faces its worst economic crisis in decades. The country suffers from food, fuel, and medicine shortages, long blackouts, and a collapse in tourism and exports.

U.S. sanctions, tightened in early 2025, have made things worse by cutting Cuba off from dollars and foreign investment. For years, Russia was Cuba’s main partner, promising big investments in energy, agriculture, and public works.

In 2023, Russia pledged over $1 billion in new projects, including a $100 million investment to restart Cuba’s largest steel plant. But most Russian projects have stalled or failed to deliver.

The steel plant produced only 4,200 metric tons of steel in 2024, far below the promised 62,000. Plans for new supermarkets, wheat shipments, and beachside housing have also seen delays or abandonment.

Russia’s war in Ukraine and worries about Cuba’s ability to repay debts have made Moscow cautious. China has now stepped in to fill the gap.

Since Cuba joined China’s Belt and Road Initiative in 2018, Beijing has invested in key infrastructure like ports, telecoms, and especially solar energy. In 2025, China is funding 55 new solar parks across Cuba, with another 37 planned by 2028.

These projects will add up to 2,000 megawatts to Cuba’s grid—almost two-thirds of the country’s current electricity needs. Already, new solar parks are producing about 400 megawatts, easing daytime blackouts and saving fuel for nighttime power.

Chinese shipments of solar panels, steel, and equipment now arrive regularly at Cuba’s main port. Tractors and trucks with Chinese brands are seen across the island.

China’s support also extends to biotechnology, medicine, and logistics, making it Cuba’s most reliable economic partner. Cuba’s leaders call China a “strategic partner” and highlight the “iron friendship” between the two countries.

Both governments have signed deals to deepen cooperation in energy, trade, and technology. Cuba also joined the BRICS+ group as a partner, aiming for closer integration with China and other major economies.

The growing Chinese presence in Cuba has drawn attention in Washington. Cuba sits less than 150 kilometers from Florida, closer to the U.S. than Taiwan is to China. U.S. officials have raised concerns about possible Chinese intelligence operations and military cooperation on the island.

Satellite images and expert reports show expanded Chinese facilities in Cuba, though both governments deny any foreign military bases. Despite China’s investments, Cuba’s crisis remains severe.

Experts warn that even large-scale Chinese aid may not be enough to overcome U.S. sanctions and deep economic problems. The details of China’s financial deals with Cuba are mostly secret, making it hard to know how Havana will repay its debts.

Still, China’s actions have shifted the balance of power in the Caribbean. As Russia’s promises fade, China has become Cuba’s main backer, securing influence just off the U.S. coast and reshaping regional dynamics.