← Back to Latin America News

In March, a single undersea cable took over Chile’s political transition. Over the Hong Kong–Valparaíso fiber line planned by Chinese state telecom China Mobile (the “Chile–China Express”), the U.S. revoked the visas of Chilean officials, and the handover talk between outgoing president Boric and incoming president Kast collapsed in just 22 minutes.

What a $500-million cable means

The cable runs about 20,000 km. It would be the first South America–Asia undersea cable to link Hong Kong and Valparaíso directly. If built, it would connect South America to China without routing through North America, as data must today. For China it carries geopolitical weight, sharply reducing reliance on U.S.-managed networks. China–Latin America trade reached $518 billion in 2024, and China is already among South America’s top trading partners. When infrastructure and trade are fused, a communications “route” is not just equipment but a diplomatic asset.

A visa revocation as a “threat”

The U.S. State Department revoked the visas of three Chilean officials involved in approving the cable, citing that they had “endangered critical communications infrastructure and undermined regional security.” The U.S. worry is that a Hong Kong route could give Beijing access to data. China countered that it “harms no third country’s interests,” accusing Washington of trying to preserve a monopoly over international communications. The visa pressure drew charges of “a violation of sovereignty” inside Chile too.

A 22-minute talk and a position that cannot choose

Boric and Kast clashed over sharing cable-related information and the approval process, and a handover meeting that normally runs as a formality ended in 22 minutes. The Kast government inherited the issue unresolved. Chile is a pro-U.S. trading nation with a free-trade agreement, yet China is inseparable as a top buyer of its copper and farm goods. “China or the U.S.” is a politically impossible binary for an export-dependent small state. The cable dispute is a miniature of a larger question: which communications backbone South America will build around next.

In an age when undersea cables move geopolitics, where is the room for a small state to stay “neutral”?

References

※ This article is the author’s commentary based on public information. Please confirm the latest figures, dates and procedures with governments and primary sources. Quotations are kept minimal and sources are cited.