China Mobile’s endeavor to collaborate with Chile on an undersea cable connecting South America and Asia has hit a snag after U.S. government intervention. On Thursday, June 18, “the Rest of World” magazine uncovered more details behind the project.
On the morning of February 20, 2026, Juan Carlos Muñoz, the then Chilean Minister of Transport and Telecommunications, woke up to an email from the U.S. State Department informing him that his diplomatic visa had been revoked. Muñoz and two other Chilean government officials’ visas were revoked due to activities deemed detrimental to critical telecommunications infrastructure and regional security in the Western Hemisphere.
At the time, these officials were evaluating a $500 million proposal by China Mobile to connect the Chilean city of Valparaíso with Hong Kong via an undersea cable. China Mobile aimed to construct the first cable linking Latin America and Asia.
Muñoz told “the Rest of World” that the U.S. visa sanctions had a significant impact on him, preventing him from visiting a country crucial to his work, which also serves as a key aviation hub. He expressed dismay over the damage to his reputation.
The robust development of artificial intelligence has increased the demand for undersea cables that carry a significant portion of global data. All coastal countries in South America have undersea cables linked to the United States. In recent years, U.S. tech giants including Alphabet, Meta, and Amazon have monopolized this market. Chile, like most other countries, relies on American companies for global connectivity.
About a decade ago, Chile expressed its desire to connect with the Asia-Pacific region. However, the Chilean government at that time sought to reduce its dependence on U.S. tech companies and turned to China in 2019 when Huawei proposed to build an undersea cable to Shanghai. Due to U.S. pressure to exclude companies with ties to the Chinese military from global telecom projects, the plan was ultimately shelved.
Subsequently, tensions between the U.S. and China have continued, with the U.S. banning Huawei from participating in global network construction and seeking to limit its influence in global networks.
Several Chinese companies, including China Telecom, Huawei, ZTE, and Alibaba Cloud, operate 5G networks and data centers in countries such as Mexico, Brazil, Chile, Peru, and Argentina.
In January 2026, the Chilean Ministry of Telecommunications initially approved China Mobile’s proposal to build a 20,000-kilometer (12,000-mile) high-speed undersea cable between Chile and China. Ministry officials were subsequently summoned to the U.S. Embassy in Santiago for a meeting. Two days later, the approval was revoked citing “technical errors.”
Former Chilean President Gabriel Boric stated that he withdrew the project due to long-term threats from the U.S., emphasizing the need for public debate on any decisions regarding the undersea cable.
President José Antonio Kast, who was sworn in on March 11, aims to deepen relations with the U.S. while maintaining friendly ties with China.
Shortly after Kast took office, the U.S. Ambassador to Chile declared the termination of China Mobile’s undersea cable project. The Kast government initially mentioned Google’s Humboldt undersea cable as rendering another Chinese cable unnecessary. However, recent rumors suggest that evaluation of China Mobile’s undersea cable project is still ongoing.