Chile said Wednesday it was reviewing an agreement to construct a Chinese astronomical observatory on its soil. The project has drawn criticism from Washington as it jostles with Beijing for influence in Latin America.
Under an agreement signed by President Xi Jinping in 2016 with Chile’s Catholic University of the North (UCN), the Ventarrones Astronomical Park was to be built in the Atacama desert, home to the world’s darkest skies and numerous other observatories.
The foreign ministry in Santiago said in a statement, “The project is under review; it is not canceled.” It did not provide reasons.
The ministry said its legal department was studying the agreement and had contacted the UCN and the Chinese embassy for more information.
It complained, however, that “certain countries (that) maintain hundreds of military bases abroad with tens of thousands of stationed troops… allow themselves to criticize and interfere in legitimate technological cooperations between other nations.”
Without referring to the project, the US embassy in Santiago said Washington “has long been clear in expressing its concern about China’s Civilian-Military Fusion Strategy and the links it creates between the People’s Liberation Army, China’s civilian space programs, and Chinese academic and scientific organizations.”
The embassy’s press section underlined that “we cannot live in a world where China has more influence and presence than we do in our region.”
It added: “The growing role of the Chinese Communist Party (CCP) in the Western Hemisphere threatens the interests of the United States.”
For two centuries, the United States claimed Latin America as part of its sphere of influence. China has, however, been making inroads.
Two-thirds of Latin American countries have joined Xi’s trillion-dollar Belt and Road Initiative infrastructure program, and China has surpassed the United States as Brazil, Peru, Chile, and several other countries’ biggest trading partners.
Chile’s Entry Into The BRI
Chile became the first South American nation to formally join the BRI when it signed a Memorandum of Understanding (MoU) with China on November 2, 2018. The agreement was inked during Chile’s then-Foreign Minister Roberto Ampuero’s visit to Beijing, where he met with He Lifeng, head of China’s National Development and Reform Commission.
Ampuero emphasized that the BRI would position Chile as a gateway for Chinese investments in Latin America while addressing the country’s pressing need for modern infrastructure, such as roads, ports, and railways.
This move was built on decades of strong bilateral relations. Chile was the first South American country to recognize the People’s Republic of China in 1970 and later signed a Free Trade Agreement (FTA) with China in 2005, which boosted economic exchanges.
By 2018, China had already surpassed the United States as Chile’s top trading partner, particularly in copper exports, a cornerstone of Chile’s economy.
The BRI has significantly expanded China’s economic footprint in Chile. According to InvestChile, a government agency promoting foreign investment, China invested nearly $8 billion in projects in 2021 alone, outpacing the United States by $3 billion. These investments have targeted sectors such as renewable energy, public utilities, mining, and transportation infrastructure.
Despite its successes, the BRI in Chile faces challenges. Critics globally have raised concerns about the initiative’s potential to create debt traps for developing nations despite Chile’s relatively stable economy.
However, China’s entry and dominance of Latin America has really worried the US. Chile’s growing reliance on China has sparked debate amid U.S.-China tensions. While Chile maintains strong ties with the United States, its alignment with the BRI has led some politicians to weigh the merits of balancing relations between the two powers.
With Inputs from AFP
