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Latin America and the Caribbean have been a major battleground of the "foreign policy war" between Taiwan and the PRC over international legitimacy, and recognition. This paper analyzes the growing rivalry between China and Taiwan and its implications. The first part of the paper examines the importance of Latin America and the Caribbean for both Being and Taipei. The second section explores political aspects of their involvement in the region. The third part assesses how Being and Taipei use economic diplomacy to meet their diplomatic objectives in Latin America. The fourth section examines the implications of the increasing rivalry between Taipei and Being in the region. [ABSTRACT FROM AUTHOR]