UncategorizedWhy Chile is the latest LATAM country to be caught in a...

Why Chile is the latest LATAM country to be caught in a U.S.-China power struggle

View of the city of Santiago and the Andes Mountains, taken from the Metropolitan Park on July 2, 2024.

Rodrigo Arangua | Afp | Getty Images

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Chile is the latest Latin American country to have become embroiled in a U.S.-China power struggle.

The country, which counts Washington as its top foreign investor and Beijing as its largest trading partner, is facing pressure from the White House over a subsea cable project with links to China.

In a surprise move, U.S. Secretary of State Marco Rubio said late last week that the Trump administration would impose visa restrictions on three Chilean officials tied to a digital cable project proposed by Chinese firms, alleging a security threat.

Chilean President Gabriel Boric, who will leave office on March 11, condemned the visa sanctions and rejected the notion that the country “promotes any action that threatens our security or that of the region.”

Chile’s outgoing left-wing government later said one of the sanctioned officials was the country’s Minister of Transport and Telecommunications Juan Carlos Muñoz, without commenting on the identities of the other two.

The U.S. ambassador to Chile, Brandon Judd, defended the visa restrictions on Monday, telling reporters that it is Washington’s “sovereign right to take actions when we feel that the region’s security is being threatened,” according to The Associated Press.

The spat comes just days before a Latin American leader’s summit in Miami, Florida — and two weeks before Chile’s incoming right-wing government takes over in Santiago.

Chile’s President-elect Jose Antonio Kast speaks to journalists after meeting with the Italian Prime Minister at Palazzo Chigi in Rome on Febuary 5, 2026.

Filippo Monteforte | Afp | Getty Images

It also represents a major test for José Antonio Kast’s administration, following the right-wing candidate’s election victory late last year.

Analysts say U.S. President Donald Trump, who is seeking to counter China’s strategic influence in the region, is sending an unequivocal message to Latin American countries.

‘A calibrated warning’

The U.S.-Chile tensions were, above all, “a calibrated warning” to the Kast administration that strategic infrastructure decisions will be treated as geopolitical alignment choices — rather than neutral tenders, according to Mariano Machado, Americas principal analyst at risk intelligence company Verisk Maplecroft.

To be sure, digital undersea cables are the backbone of the world’s internet and telecommunications infrastructure, enabling everything from international phone calls to financial transactions. By some estimates, as much as 95% of international traffic passes through these largely unseen data super-highways.

A map of the world’s undersea communication cables.

CNBC | Jason Reginato

“The near-term external consequence is that Kast’s upcoming Washington engagements – chief among them, in the Shield of the Americas summit – will become early tests of how Chile balances partners under pressure,” Machado said.

“As US-China competition intensifies in the region,

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