Argentina caught in US-China row over Huawei visa threat claims

Buenosaires,UPDATED: Aug 7, 2026 04:46 IST

China and the United States have entered a diplomatic dispute in Argentina as President Javier Milei tries to keep close political ties with Washington while expanding economic links with Beijing. The latest flashpoint centres on claims that executives of an electricity cooperative in Argentina were threatened with US visa action over a deal with Chinese telecom company Huawei.

The row comes at a time when Argentina has renewed a bilateral currency swap agreement with China for five more years, and Foreign Minister Pablo Quirno is expected to visit China in the coming months to strengthen economic and commercial ties. Quirno's office declined to comment.

China's embassy in Buenos Aires on Thursday accused the United States of hypocrisy after CALF, the biggest electricity distributor in southern Argentina, said the US Embassy had threatened to revoke visas of its executives. In a statement, the Chinese embassy said, "These actions fully reflect the arrogance and prejudice of the United States. They constitute a serious lack of respect for the sovereignty of other countries and a serious infringement of the principles of the free market." It added that the United States should "correct its perception of China and put an end to its hegemonic practices and political manoeuvring".

Days earlier, CALF said its executives had been threatened with the loss of their US visas for negotiating with Huawei. The cooperative said one executive received WhatsApp messages warning that US visa restrictions could apply to those involved in expanding Huawei's operations in Argentina. CALF said it had formally raised the matter with the US Embassy and Argentina's Foreign Ministry to seek clarification.

In July, CALF announced that it was expanding its partnership with Huawei to build its first fibre-optic network and support other modernisation projects. US Ambassador to Argentina Peter Lamelas did not respond to a request for comment, but wrote on X, "Deciding who may enter the country and who may not is the responsibility of every sovereign nation. Denying or revoking a visa is not a punishment; it is a decision made to protect the country's security and interests."

The Argentine Federation of Electricity and Public Services Cooperatives, or FACE, said on Thursday that its members "do not respond to corporate interests or geopolitical strategies" and that any disputes should be resolved through "institutional, transparent and respectful dialogue". FACE also said it would formally seek a meeting with Lamelas.

The dispute has unfolded as the Trump administration increases its efforts to counter China's influence in Latin America, with officials invoking what they describe as a modern-day version of the Monroe Doctrine. The United States has revoked visas of three senior Chilean officials and threatened to reassert US control over the Panama Canal as part of the wider geopolitical contest.

Milei has emerged as one of Trump's closest allies in the region, despite having called China's Communist government "assassins" during his presidential campaign. Washington has supported his administration politically and financially, including with a USD 20 billion package aimed at boosting Milei's electoral prospects and stopping the peso's sharp slide. Even so, trade with China has continued to deepen, with Chinese goods gaining ground in Argentina, shopping apps such as Shein, Temu and AliExpress becoming highly popular, more than 20 Chinese carmakers selling over 60 models in the country, and China's Ganfeng Lithium investing billions of dollars in lithium deposits in the north.

Benjamin Gedan, senior fellow and director of the Latin America Programme at the Stimson Center, told The Associated Press, "In some ways, Trump has given Argentina breathing room." But, he added, deals with Huawei are often "a red line for the United States" because they can involve sensitive infrastructure and strategic assets. The latest clash underlines the pressure on Milei as he tries to manage Argentina's ties with both Washington and Beijing.

With PTI Inputs

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