Chile’s Bold Move Towards Digital Independence
For decades, Chile has sought to alleviate its digital dependence on North America. The introduction of China Mobile as an alternative to US-based tech giants promised a solution through the construction of an underwater cable from Valparaíso to Hong Kong. However, this plan has triggered a significant diplomatic unrest, notably with the United States, which viewed the decision unfavorably.
The Existing Dependency
Nearly all submarine cable infrastructure connecting Chile to the rest of the globe relies on US territory or falls under the control of North American companies such as Google, Meta, and Amazon. When Chile pursued a direct route to Asia, it found that the only feasible option passed through China, prompting alarm bells in Washington.
Negotiations and Approvals
China Mobile, a state telecommunication company of China, put forth a $500 million proposal for a 20,000-kilometer underwater cable linking Concón in Chile to Hong Kong. Dubbed the Chile-China Express, this project would be the first direct transpacific data link from Latin America to Asia without traversing North America. The Chilean Ministry of Telecommunications granted approval for this proposal in January.
Reaction from Washington
Just two days after Chile signed the concession decree, the Ministry retracted its approval, citing “a technical error.” Reports reveal that Chilean officials were urgently summoned to the US embassy in Santiago, leading to the revocation of visas for Chile’s Minister of Transportation and two senior officials. The State Department’s official statement indicated that their actions “compromised critical telecommunications infrastructure” and jeopardized regional security.
Defending the Decision
Chile’s representatives contended that the evaluations performed on the project were standard procedure. Jorge Heine, a former diplomat, emphasized the necessity of diversifying communication sources to mitigate potential outages stemming from geopolitical tensions. He criticized the US sanctions as an unprecedented overreach into Chile’s legal operations.
The Political Landscape Changes
The political shift in Chile on March 11 further complicated the issue. Former President Gabriel Boric revealed that he had withdrawn approval for the project due to US threats about possible long-term repercussions. His successor, right-wing José Antonio Kast, faced the arduous task of balancing relations with China, a key trade partner, and not antagonizing the US, the main foreign investor.
Nuanced Official Position
While the Kast administration initially relied on Google’s Humboldt cable, aiming for a 2027 connection between Chile and Australia, executive sources have since indicated that the China Mobile project remains “under evaluation.” Pedro Huichalaf, a former telecommunications secretary, highlighted that establishing redundancy in routes to Asia is still a priority for Chile.
The Broader Geopolitical Landscape
China has been enhancing its digital footprint in Latin America, establishing 5G networks and data centers in several countries, including Chile. Meanwhile, Brazil is advancing its own 35,000-kilometer cable project, creating links with China, India, Russia, and South Africa. Washington perceives these strategies as challenges to its dominance within the region.
A Long-Term Vision for Independence
Ultimately, both Chile and Latin America as a whole may find that a balanced approach—reducing dependency on either Washington or Beijing—is the most effective path forward. As Aisén Etcheverry, a former Minister of Science and Technology, noted, while building relationships with diverse partners enhances resilience, it is critical for the region to cultivate its own technological capabilities.