US Ambassador Warns Against Huawei Technology in Argentina's Energy Sector

United States Ambassador to Argentina Peter Lamelas urged local companies to exclude Huawei from strategic projects, asserting that the Chinese technology firm spies for the Chinese Communist Party. Speaking at the AmCham Energy summit, Lamelas stated that China requires its companies to provide the state with access to any data passing through their technology and artificial intelligence networks. He argued that this lack of security would hinder foreign investment in Vaca Muerta, noting that US companies avoid Huawei equipment due to security and transparency concerns.

The warnings follow a diplomatic dispute involving the Neuquén electricity distributor CALF. The cooperative had been negotiating a data center contract with Huawei when a US embassy official reportedly requested the termination of the deal and warned of potential visa restrictions for executives. CALF described this as undue pressure and filed a complaint with the Ministry of Foreign Affairs. The Chinese embassy responded by accusing the US of arrogance and a lack of respect for sovereignty, stating that Argentina has the right to choose its providers autonomously.

Beyond the dispute with Huawei, Lamelas highlighted the administration of Javier Milei as creating a favorable environment for foreign capital through economic freedom and reduced bureaucracy. He confirmed that the US is evaluating financing for the AMBA I electrical transmission project, which has a budget of 800 million dollars. The tender for that project includes limits on the participation of state controlled companies. Lamelas concluded by encouraging Argentine businesses to seize the current investment moment, using the phrase "cocodrilo que se duerme, es cartera" to warn against complacency.