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Chile’s Plan for a 20,000 km Undersea Cable to Hong Kong Halted by U.S. Pressure, Highlighting the Silent Data Control Battle in Latin America

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Written by Carla Teles Publicado em 23/06/2026 at 18:20 Atualizado em 23/06/2026 at 18:21
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The Chilean submarine cable promised to connect the Chilean coast to Hong Kong via China without passing through North America, but pressure from the United States turned it into a diplomatic crisis, annulled the concession, canceled visas, and exposed a dispute over data, regional security, and digital dependency in Latin America in critical regional infrastructure.

The submarine cable that would link Chile to Hong Kong became the center of a diplomatic dispute between the United States and China in 2026. The proposal, presented by the state-owned China Mobile, envisioned a connection of about 20,000 kilometers between the Chilean coast and Asia.

According to Xataka, in June 2026, the case gained momentum after Chilean authorities approved the concession, but the process was annulled a few days later amid pressure from Washington. The dispute involves telecommunications infrastructure, data control, regional security, and Chile’s attempt to reduce its digital dependency on North America.

Chile sought a direct route to Asia

Submarine cable in Chile exposes dispute between China and the United States over data and influence in Latin America.
Image: Reproduction/AI

For years, Chile has tried to reduce its dependency on digital routes that pass through North America. Much of the country’s international connectivity depends on submarine cables linked to American territory or U.S. technology companies.

In this scenario, a direct connection with Asia appeared as a strategic alternative. The idea was to create a data route that would bring Latin America closer to the Asia-Pacific axis without relying on North American infrastructure.

The proposal from China Mobile was named Chile-China Express. The project envisioned a submarine cable of approximately 20,000 kilometers, connecting the region of Concón, in Chile, to Hong Kong.

The estimated investment was US$ 500 million. If advanced, the connection could become the first direct transpacific data connection between Latin America and Asia without passing through North America.

Approval turned into crisis in a few days

The Ministry of Telecommunications of Chile approved the proposal in January, according to the source cited by Xataka. However, two days after the signing of the concession decree, the process was annulled on the grounds of a technical error.

The turnaround drew attention because it occurred amid the reaction of the United States. What seemed like an infrastructure procedure began to be treated as an episode of regional security and geopolitical dispute.

Chilean authorities were summoned to the American embassy in Santiago, according to reports cited by the article. After that, the U.S. Department of State revoked visas of Chilean government members linked to the transport and telecommunications sector.

Among them was Juan Carlos Muñoz, then Minister of Transport and Telecommunications. The American notification claimed that actions related to the case compromised critical telecommunications infrastructure and affected regional security.

Washington saw risk in critical infrastructure

For the United States, the problem was not just the submarine cable itself, but the involvement of a Chinese state-owned company in an infrastructure capable of transporting strategic data between continents.

Submarine cables are the invisible backbone of the global internet. Through them pass business, financial, governmental, and personal communications. Whoever controls the physical infrastructure also influences routes, dependencies, and points of vulnerability.

The American concern fits into a broader dispute with China. In recent years, Washington has begun to treat 5G networks, data centers, semiconductors, and submarine cables as parts of the same battle for technological security.

In the Chilean case, the reaction was considered harsh because it directly affected authorities of an allied country. The revocation of visas turned a technical discussion into an open diplomatic crisis.

Chile defended redundancy and digital sovereignty

From the Chilean point of view, the proposal also had strategic logic. The country sought alternatives to avoid relying on a single zone of influence in the international transport of data.

Experts cited by the source argue that redundancy is important. In telecommunications, having more than one route reduces risks of interruption, increases resilience, and allows alternatives in case of conflict, technical failure, or political pressure.

For Chile, the submarine cable could represent digital autonomy; for the United States, it could open a sensitive door for Chinese influence. This difference in interpretation explains why the project became so delicate.

The debate also highlights a recurring dilemma in Latin America. Countries in the region need robust digital infrastructure but often rely on capital, technology, and routes controlled by external powers.

Google Cable Does Not End the Dispute

The Chilean government is also connected to the Humboldt project, developed with Google to connect Chile to Australia. This route was presented as an alternative to the Chinese cable, especially because it also brings South America closer to the Asia-Pacific region.

Even so, the Humboldt does not eliminate all doubts. As the connection passes through the axis of U.S. allies, critics claim that dependence on American oversight would continue in another form.

The central point is not just reaching Asia, but deciding through which networks, companies, and countries South American data will circulate. This is the less visible layer of the dispute.

Therefore, the comparison between the Chinese cable and the Google cable goes beyond cost or engineering. It is about knowing who defines the paths of digital infrastructure and what interests weigh on these decisions.

Latin America Has Become a Data Chessboard

Chinese digital presence in Latin America is growing. Companies like Huawei, ZTE, China Telecom, and Alibaba Cloud appear in networks, data centers, and technological projects in countries in the region.

At the same time, American companies like Google, Meta, and Amazon also control a significant part of the infrastructure and digital services used on the continent. The dispute, therefore, is not between dependence and independence, but between different forms of dependence.

The case of Chile shows how a submarine cable can become a piece of a silent war. There are no tanks, military borders, or visible battles, but there is diplomatic pressure, annulled concessions, and concern over the flow of information.

This infrastructure defines who can connect markets, host services, protect data, and expand political influence. Therefore, a technical telecommunications project ended up gaining international dimension.

Government Change Inherited a Sensitive Problem

The change of government in Chile further complicated the case. The project passed from one administration to another amid pressure from the United States, the commercial weight of China, and the need to preserve relations with both sides.

The country has China as an essential commercial partner, especially because of commodity exports. At the same time, the United States remains a significant investor and a historical actor in hemispheric politics.

Any decision regarding the submarine cable, therefore, has diplomatic costs. Moving forward with China may irritate Washington; abandoning the project may reinforce the perception of U.S. dependence.

Government sources cited in the report indicated that the Chinese proposal could still be under evaluation. This shows that, even after the pressure, the issue has not completely disappeared from the agenda.

Brazil and other countries face the same dilemma

The Chilean case is not isolated. The source itself mentions that Brazil is promoting a proposal for a 35,000-kilometer cable to connect with China, India, Russia, and South Africa, within a logic of diversification.

This type of project reveals a greater quest for digital autonomy in the Global South. Latin American countries want more routes, more capacity, and less dependence on bottlenecks controlled by a few external actors.

But building their own infrastructure requires investment, regional coordination, and technical capacity. Without this, the region remains trapped in the choice between American, Chinese, or other bloc networks.

The challenge, therefore, is not just deciding which power will be a partner. It is to develop enough local capacity to negotiate better and reduce vulnerabilities.

Cable became a symbol of an invisible dispute

The submarine cable between Chile and Hong Kong promised to be a direct 20,000-kilometer route to bring Latin America closer to Asia. But the pressure from the United States, the canceled visas, and the annulment of the process turned the project into a symbol of a larger dispute.

At its core, the case reveals that data also crosses geopolitical borders. The question now is whether Latin American countries will be able to build real digital autonomy or if they will continue choosing between external dependencies. Do you think Chile should insist on its own route to Asia, even under US pressure, or does the security risk justify blocking the project? Leave your opinion in the comments.

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Carla Teles

I produce daily content on economics, diverse topics, the automotive sector, technology, innovation, construction, and the oil and gas sector, with a focus on what truly matters to the Brazilian market. Here, you will find updated job opportunities and key industry developments. Have a content suggestion or want to advertise your job opening? Contact me: carlatdl016@gmail.com

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