A national protest march against the construction of a transoceanic canal in Nicaragua.

Last week, Nicaragua canceled its deal with a Chinese company to build and manage a canal that stretches across Central America, ending a decade-long saga. Despite this development, China’s influence in Nicaragua has never been greater, in large part due to the diplomatic isolation of President Daniel Ortega’s autocratic government.

A man carries a portrait of President Daniel Ortega during a pro-government march in Managua, Nicaragua, Feb. 11, 2023.

In Nicaragua, the steady dismantling of democracy by President Daniel Ortega and his wife, Vice President Rosario Murillo, has been advancing for many years. But in the past couple of weeks, the Ortega-Murillo regime took control of the country’s Supreme Court, a dramatic move that arguably crossed the line into dictatorship.

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