Tuesday, July 1, 2025

In the rural town of Jatibonico, Cuba, a microcosm of the island’s struggles with aging infrastructure and economic hardship, a small, defunct sugar mill once operated as the country’s largest employer, until it was left idle. Lacking fuel, electricity, and the necessary parts to revive it, the town of Jatibonico reflects the broader challenges that Cuba faces. Despite promises made by Russia two years ago, including the revitalization of the mill, residents have largely been left in limbo.

But beyond the dusty roads and decaying industrial sites, another project is quietly underway that could play a crucial role in Cuba’s future – a Chinese-financed solar park designed to provide 21 MW of electricity. This solar park is part of a broader series of initiatives funded by China to help the struggling island meet its energy needs. Once completed, the solar projects could provide Cuba with a much-needed energy boost, alleviating some of the strain from the country’s power grid, which has collapsed several times in the past year, leaving millions without electricity.

While Russia’s promises to aid Cuba have faltered in recent years, China has stepped up to fill the void, becoming Cuba’s leading benefactor and investor. A series of recent infrastructure projects in Cuba, many linked to the Belt and Road Initiative (BRI), have helped shore up the island’s crumbling infrastructure. From energy and telecoms to ports and transportation, Chinese investments have become a lifeline for the island, which is grappling with severe shortages in food, medicine, and fuel.

Cuba’s economic situation has become increasingly dire in recent years, exacerbated by the imposition of renewed U.S. sanctions during the Trump administration. Faced with food shortages, frequent blackouts, and a lack of resources, Cuba has turned to its long-time allies for support. While Russia has been a historic partner, its capacity to aid Cuba has been diminished due to its ongoing war in Ukraine and economic challenges of its own.

In contrast, China’s influence in Cuba has grown steadily since the island joined China’s Belt and Road Initiative in 2018. One of the most visible signs of China’s rising role in Cuba is its involvement in the energy sector. China has financed the development of multiple solar parks across the island. These solar parks are expected to produce significant energy to mitigate the country’s daytime energy shortfalls, offering an alternative to the country’s increasingly unreliable power grid.

Cuba’s first solar park, inaugurated in February 2025 in Cotorro, just outside the capital Havana, marks the beginning of a long-term partnership between the two countries. The park is a testament to the growing importance of China in Cuba’s infrastructure development. In the coming years, at least 55 additional solar parks are slated to be built by China, bringing Cuba’s total solar capacity to more than 1,100 MW by the end of the year, nearly covering the island’s daytime energy deficit.

In recent years, Russia’s promises to Cuba have often been more grandiose than their actual implementation. Russia’s efforts to revitalize Cuba’s steel mill, a major initiative in 2023, were touted as a significant step in Russian-Cuban cooperation. However, despite the opening of the plant, reports suggest that the mill’s output has been far below expectations, with Cuba producing only a fraction of the promised steel.

A resident of the mill’s neighboring community in Havana, Esperanza Perez, explained her disappointment: “Talk is cheap. When the mill was running, we heard the noise, saw the workers, but I haven’t seen any sign that it’s operating,” Perez said. “We’ve seen no benefits here.”

Most of the Russian-funded projects in Cuba, such as the reconstruction of Tarara beach homes and the establishment of the Rusmarket in Havana, have been delayed or stalled. Even though Russia has provided shipments of wheat and oil, its investments have largely failed to produce tangible, long-term results. A significant Russian investment plan to subsidize interest rates for businesses to invest in Cuba has yet to come to fruition, and experts have warned that such projects are unlikely to solve Cuba’s deep-rooted economic problems.

China’s growing economic footprint in Cuba comes at a time when the island is grappling with an unprecedented crisis. With skyrocketing energy demands, widespread food and medicine shortages, and increasing unemployment, Cuba is in desperate need of foreign investment. Although China’s contributions have been substantial, some experts caution that Cuba’s reliance on external help—especially from China—could have its own set of challenges.

Fulton Armstrong, a former U.S. National Intelligence Officer for Latin America, remarked, “China’s investments are a big benefit, but they won’t be enough to overcome the Trump administration’s renewed sanctions on the island.” He added that Cuba’s path forward would require more than just foreign capital and aid; it would need a comprehensive strategy for economic sustainability.

Despite this, China’s involvement continues to be a significant factor in Cuba’s recovery efforts. The solar parks, the modernized telecommunications infrastructure, and the construction of new ports are all examples of China’s growing commitment to the island’s development. The port of Mariel, located just west of Havana, is seeing increased traffic from China, with goods such as solar panels, steel, and tools arriving regularly.

While Russia’s historical influence in Cuba appears to be waning, China has quietly emerged as the island’s most important partner. From solar energy projects to port infrastructure and beyond, China’s investments are helping Cuba navigate one of the most challenging periods in its modern history. Yet, while these investments may provide a temporary respite, experts agree that Cuba’s future will depend not only on external assistance but also on significant internal reforms.

For now, the island’s residents and government continue to rely on the lifeline China has provided. But as Cuba faces mounting pressures, it is clear that only a combination of international partnerships, domestic reforms, and strategic investments will allow the island to overcome its economic crisis. With China continuing to play an instrumental role in Cuba’s infrastructure development, the two countries’ relationship will likely shape Cuba’s future for years to come.

(Source: Reuters, Cuban Government, Chinese Government)

«Enjoyed this post? Never miss out on future posts by following us»