China wants to lay a cable from Chile to Hong Kong. And in the process, it has put Chile in a storm against the US

Next March 11, Chile will have a new president. Gabriel Boric will no longer be in charge of the country and José Antonio Kast will land in the presidential chair. And he arrives just to take care of a morrocotudo mess: the submarine cable that China is deploying from Valparaíso to Hong Kong. And, evidently, the United States does not like this situation one bit. To the point that he considers it dangerous for his safety. In short. On February 20, the United States revoked the visas of three Chilean officials. The reason? Concern about an underwater cable that will connect Chile and Hong Kong. It’s not so much the cable, but who is ‘pulling’ it: China. As they point out in Mercopressit was the outgoing president who managed the agreement to deploy this cable through a concession decree signed on January 27, which allowed the company China Mobile to install, operate and exploit the cable. 48 hours later, that act was annulled citing “technical errors” and the Boric Administration commented that the project was in the evaluation process. The United States, however, wasted no time and banned the visas of the Minister of Transportation and Telecommunications, the Undersecretary of Telecommunications, and the Chief of Staff of Subtel (Chile’s Undersecretary of Telecommunications). The storm it had just started. political war. Marco Rubio is the Secretary of State of the United States and accused Chilean officials for having “knowingly directed, authorized, financed and supported activities that compromise critical telecommunications infrastructure.” You may be wondering what the United States cares about what Chile does, but Rubio continued by pointing out that this decision “undermines regional security in our hemisphere.” “Which hemisphere” is not the question, but what is happening now. Because Chile has responded that the accusation is “absolutely false” and describes the United States measure as “unilateral,” also pointing out that it is something that goes against Chile’s sovereignty. China has not stood by and, through its embassy in Santiago de Chile, accused the United States of acting in a hegemonic manner, ignoring Chile’s sovereignty to carry out these projects in its territory. If you look closely, the cables from the American continent pass through the US except for Google’s Halaihai, at least directly Cross-fire. Brandon Judd is the US ambassador to Chile and has sided with his government… going a little further in the accusations. Affirms which had already warned the Chilean authorities of what would happen, describing the agreement with China as an intrusion into Chilean telecommunications systems carried out by “malicious foreign actors.” And, as we said, it will be next March 11 when the new president will take office with a pending task: solving a monumental ballot. From the Foreign Relations Department of the incoming president, it has already been saying that “everything possible will be done to ensure that foreign policy allows for the best possible relations with all countries.” A 0º, neither cold nor hot. Influence. Leaving domestic and foreign politics aside, the cable is known as Chile-China Express and is estimated to measure almost 20,000 kilometers. It will link the Chilean city of Concón and reach Hong Kong. The budget is about 500 million dollars and its importance seems key because it would represent the first transpacific data route that would completely avoid routing through North America. From China Mobile it is pointed out that this cable will allow establish Chile as “the central node of the computing power network between China and Latin America.” Now we begin to understand what it is that “undermines regional security in our hemisphere” to which Marco Rubio referred. If completed, it will be a cable deployed by China and in which the United States will have no say, but which reaches the American continent. And we say that it is an important ballot for the new president because the United States injects a lot of money into Chile, being its main foreign investor, but China is the main trading partner of the country. A cable is going to put Kast between a rock and a hard place. Not only in telecommunications. In the background, we have a United States that is looking at the wolf’s ears. In recent months, and at an accelerated pace, China has been moving its chips. It has done this in developing countries on the African continent through energy deals, infrastructure construction, agreements to mine strategic elements and expand its automobile market. But he is also doing it in America. When the United States turned its back on Mexico with tariffs, China was there to offer to open factories. He is carrying out energy projects on American soil, he has interest in some of the strategic ports of the continent and is rolling out infrastructure, such as a railway line that, if completed, will link South America from east to west. The cable between Hong Kong and Chile is just one more piece of a puzzle that Beijing is weaving, which has already torn off with the works. And Washington only sees one thing: the wolf at the doors. In Xataka | The first great Atlantic submarine cable that connected us to the internet says goodbye for a simple reason: it was too expensive to repair it

China will premiere its new Hong Kong in December. And Europe is not prepared for what is coming

December will mark a turning point in the Chinese commercial strategy. The island of Hainan will launch its large -scale independent customs operation, becoming The new nerve center For international trade with China. A movement that arrives five years after Hong Kong lost his historical role as a bridge between the East and West. The western entrance door to China. Hong Kong has lost much of its appeal to Western companies since 2020, when Beijing The National Security Law imposed In the territory. This change in Hong Kong has been one of the ingredients that have contributed to the cooling of foreign investment in China, and that adds to a list that includes The growing geopolitical tensionsminor growth prospects and increased risk perceived after Trump’s return to power. The former British colony, which for more than two decades had worked as the privileged entrance door to China, no longer offers the predictable commercial environment sought by Western multinationals. A new commercial bridge. Hainan is presented as the “new and improved Hong Kong”, and The figures They support it more and more: 74% of Tariff lines They will have tariff -free products, compared to current 21%. Tax free items will go from 1,900 to 6,600. In addition, imported products that experience at least 30% added value when processing in Hainan will be able to enter Chinese continental territory without tariffs. That is, China is creating its freer economic zone just when the rest of the countries are fragmented in commercial blocks. Prepare, Europe. European companies now face a dilemma: maintain coherence with the geopolitical positions of their governments or take advantage of a real economic opportunity. While Europe debate A separation Of its financial connections on the country, Beijing is offering commercial conditions that will be difficult to reject for many multinationals. The Chinese strategy is clear: to turn Hainan into an irresistible magnet for foreign investment at a time when geopolitical tensions are at its highest point. The signals are already there. First semester data show that companies with foreign investment in China registered A 2.4% growth In its commercial value, reaching 751,720 million euros. The number of foreign companies with commercial activities in China amounted to 75,000, the highest figure for the same period since 2021. Switzerland, Japan, the United Kingdom and Germany increased their direct investment by 68.6%, 59.1%, 37.6% and 6.3% respectively. What comes now. Europe has not shown a clear strategy yet. While the United States maintains a more defined position in Its strategic competition with ChinaEuropean countries are debated among their economic ties with the Asian giant and pressures to align with Washington. Hainan represents the Chinese commitment to demonstrate that it can offer better conditions than any other emerging market, precisely when its economic model is most questioned. The countdown has begun. December 18China will officially open its new gateway to the world. Cover image | Denny Ryanto In Xataka | China has a prey capable of changing the rotation of the earth. Now they are building an even bigger

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