England, Germany, Russia, France and japan won a fight against the boxers in China(AKA The boxer rebellion) which made the U.S to be afraid of the Europeans taking over because of their victory.
John Hay- Secretary of the state under president Mckinley (U.S)
We can create a policy that allows equal trade in China while it protects China from getting invaded by these foreign countries.
Open Door Policy (1899): Favored equal trading rights for all foreign nations in China/ permanent safety and peace in china/ preserve Chinese territory.
President William Taft
For the interest of The U.S we shall invest in foreign countries!
Dollar Diplomacy (1909) -A policy aimed at furthering the interest of the U.S abroad by encouraging the investment of the U.S capital in foreign countries and guarantees loans to foreign countries.
After the rebellion, Nicaragua was in debt so the U.S loaned them money. The U.S bankers got payed back by the taxed imported goods ,gained control of the state-owned railroad system, its national bank and Nicaragua was occupied for their military forces