Argentine President Javier Milei, regarded as South America's leading pro-Trump-leaning leader, has been put in a difficult position over a contract between a domestic corporations and Chinese telecom company Huawei.
On the 7th (local time), according to major foreign media, the United States launched all-out pressure after the Neuquén province power cooperative (CALF) in Argentina recently moved to sign a contract with Huawei to build a data center. CALF, the largest power supplier in southern Argentina, released last month that it would expand cooperation with Huawei to build its first fiber-optic network and jointly pursue a power grid modernization project.
◇ U.S. to restrict visas for executives at corporations that 'cooperate with Huawei'
On the 6th, CALF said in a statement that a U.S. Embassy official asked one of its executives whether there was a possibility of canceling the ongoing project with Huawei, and noted that "the U.S. government is implementing a policy of restricting or canceling visas for directors involved in Huawei-related projects."
The local daily Clarín reported that the United States conveyed its position that it could cancel U.S. visas for CALF's board members if CALF moves forward with the data center contract with Huawei. As a result, at least 18 people, including 16 CALF directors and two auditors, could be subject to visa cancellation. Although it has not been confirmed that the United States actually canceled the visas of CALF officials, it effectively put strong pressure on CALF, which is pursuing a contract with Huawei.
This is interpreted as a measure by the Trump administration to keep China's growing influence in Latin America in check. The Trump administration last year formalized the "Donroe Doctrine" (a portmanteau of Donald Trump and James Monroe) aimed at China through the 2025 National Security Strategy (NSS) report, a comprehensive strategic guideline for diplomacy, the economy, and the military.
U.S. Ambassador to Argentina Peter Lamellas said on social media platform X that "it is the right of every sovereign nation to decide who can enter its country," adding, "Visa refusals or cancellations are not punishment but decisions to protect national security and interests."
China immediately pushed back. The Chinese Embassy in Argentina said in a Spokesperson statement that the United States is exaggerating the "China threat theory," abusing the concept of national security, and obstructing normal cooperation between Argentine corporations and Huawei. It added, "Using visa cancellations as a weapon to block normal corporate activity is an act that shows U.S. arrogance and prejudice, disrespects Argentina's sovereignty, and seriously undermines the principles of the free market."
◇ Milei must find balance between the U.S. and China
Amid the U.S.-China war of nerves unfolding in Argentina, assessments say the Milei administration, a key ally of President Trump, is caught in a dilemma. President Trump has called President Milei a "friend," and when Argentina suffered an economic crisis last year ahead of the midterm elections, the U.S. Treasury unusually bought pesos directly and moved to provide $20 billion in financial support. This allowed the Milei administration, which had been plagued by lame-duck concerns before the election, to catch its breath.
From the U.S. perspective, President Milei is a key partner in checking China. U.S. Treasury Secretary Scott Bessent, after aiding Argentina, said in October last year, "President Milei is committed to driving out China's influence in Argentina."
However, the Milei administration also finds it hard to turn its back on China. China is a major creditor to Argentina's Central Bank and one of its largest export markets for agricultural products. For this reason, President Milei, who called the Chinese government "murderers" during the presidential campaign, refrained from public criticism of China, Argentina's second-largest trading partner, after taking office in 2023, and the following year even called China "a great partner."
China's economic influence is also growing. According to the AP, Chinese e-commerce platforms such as Shein, Temu, and AliExpress have become among the most popular shopping apps in Argentina, and more than 20 Chinese automakers are selling over 60 models. China's Ganfeng Lithium is also continuing large-scale investment in lithium development in northern Argentina.
For this reason, President Milei has so far remained silent on the controversy over the contract between CALF and Huawei. The Financial Times (FT) of the United Kingdom said, "This incident shows the conflicting pressures President Javier Milei, a strong ally of President Trump, faces between the United States and China."
In the end, President Milei must find a solution that protects the national interest without greatly provoking either the United States or China. Benjamin Gedan, a senior fellow and director of the Latin America program at the U.S. Stimson Center, said in an interview with the AP, "In some ways, President Trump gave Argentina breathing room," but added, "Deals with Huawei often involve sensitive infrastructure and strategic asset, which fall under a 'red line' that the United States will never concede."