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In a potential setback for China's growing influence in Latin America and its ambitions in space, the Chilean government is reviewing an agreement for a joint astronomical observatory in Chile following a Newsweek investigation of the deal.
"We are aware of it, so we are revising and analyzing it," a spokesperson for Chile's Ministry of Foreign Affairs told Newsweek via email after Chilean media reports said the project between the Chinese government and a Chilean private university had been canceled.
It comes amid a deepening geopolitical rivalry between the United States and China that has become clearly evident in Latin America, with President Donald Trump's administration putting Panama under pressure for a deal to allow an American company to regain control of the Panama Canal from Hong Kong's Hutchison Ports.
"The expanding role of the Chinese Communist Party in the Western Hemisphere threatens U.S. interests," the U.S. Department of State exclusively told Newsweek.
A spokesperson for Secretary of State Marco Rubio said in an email: "As stated by Secretary Rubio, we can't live in a world in which China has more influence and more presence than we do in our region."
Newsweek reported in December that the observatory at Cerro Ventarrones in Chile's Atacama Desert—a joint project of the Universidad Católica del Norte and China's National Astronomical Observatories of the Chinese Academy of Sciences, or NAOC—would monitor objects orbiting Earth and seek new stars, but that it could also conduct research for China's military space program, under an agreement that left Chilean counterparts largely in the dark. Work had begun on the 10 square-mile Ventarrones Astronomical Park beneath an 8,600-foot Andean peak.
UCN did not respond to a request for comment. The Chilean government spokesperson said that the project had not been canceled. "The Ministry of Foreign Affairs has contacted UCN authorities and the Chinese Embassy in Chile to gather detailed information about the initiative. Additionally, the legal department of the Chilean Ministry of Foreign Affairs is analyzing the agreement's nature. We should finalize the analysis before making any pronouncement," they said.
On March 6, AthenaLab, a Chilean security research center, published a report that cited Newsweek's investigation and said that such observatories typically track stars, but also "monitor satellites, gather intelligence and support military space operations."
Chilean media Ex-Ante, quoting unnamed "high-ranking government sources," reported that the project had generated strong concerns in the U.S., which were communicated to the Chilean government in January by the former ambassador, Bernadette Meehan.
"The Biden administration reportedly conveyed that the Cerro Ventarrones project was not simply an academic astronomy project, as had been publicly claimed, but rather an infrastructure capable of tracking satellites in orbit, which could have strategic and defense implications," Ex-Ante said.
The State Department referred Newsweek to the Chilean government regarding the status of the project, saying it did not disclose the contents of private diplomatic communications.
"The United States has long been clear about our concerns regarding China's Military-Civil Fusion Strategy and the links it creates between the People's Liberation Army, China's civil space programs, and China's academic and science organizations," it added.
Ex-Ante quoted China's ambassador Niu Qingbao, who said that the project was a "legitimate technological cooperation." The political section of China's embassy in Santiago referred Newsweek to the article when asked to comment.
"This exchange is carried out under the principles of mutual respect and benefit, equality, and friendly voluntariness, in strict compliance with Chilean laws and regulations, and with the support of the governments, universities, and research institutions of both countries," Niu told Ex-Ante.
"The binational astronomical facilities under construction operate with complete transparency in their purposes and operations, lacking any ulterior motives," the Chinese envoy said.
"It is worth highlighting the paradox that certain countries maintain hundreds of military bases abroad with tens of thousands of troops stationed there, while allowing themselves to criticize and interfere in legitimate technological cooperation between other nations. This attitude represents a typical example of hegemony and power politics, something the Chilean people clearly perceive. Any attempt to interfere with or obstruct legitimate astronomical cooperation between China and Chile will fail," Niu said.
The Chilean government spokesperson said: "We are not reviewing any other dimension of our bilateral relationship with China."
Newsweek reported that Western intelligence sources with direct knowledge of the deal warned that the Chinese partner could potentially deploy security measures that could exclude Chileans from part of the site, built and paid for by the Chinese state—which was initially investing $80 million in it.
Chile has grown closer to China; 60 percent of its electrical grid is owned by Chinese firms and 40 percent of its exports go to China. The spokesperson described "a positive and strong relationship with China as well as with all of our partners abroad," adding: "Our relationship has a framework defined by bilateral agreements and aligned with international law principles."
