Chile’s new president, far-right leader Jose Antonio Kast, faces from the start of his term a geopolitical challenge that goes beyond domestic politics: Redefining his country’s place in the growing strategic competition between United States and China.
In Washington, there is an expectation that the new Chilean government will once again draw Santiago closer to the U.S. orbit, after years in which different administrations tried to diversify economic and technological partners, with a growing role for the Asian giant.
One of the clearest symbols of this geopolitical tug-of-war is the debate surrounding the submarine cables that carry data between continents. Chile aspires to become a key digital node between South America and Asia, but that technological ambition has become caught up in the rivalry between the world’s two largest powers, which compete for influence over the critical infrastructures of the future.
Kast and the challenge of returning Chile to the US orbit
Since the return to democracy in 1990, Chile has developed a foreign policy based on commercial pragmatism. Successive governments sought to sign free-trade agreements with multiple partners to avoid dependence on a single market and maintain broad room for maneuver on the international stage.
That approach allowed the country to cultivate strong relations with both the United States and China. With Washington, it maintained close political and economic cooperation, reinforced by a free-trade agreement that entered into force in 2004. At the same time, the rapid growth of the Chinese economy transformed Beijing into the main destination for Chilean exports, especially copper, lithium, and other strategic minerals.
The result was a dual relationship that for years functioned without major tensions: China as the main trading partner and the United States as a political ally and one of the largest investors in the Chilean economy. However, that balance has become increasingly fragile as the rivalry between the two powers intensifies.
Digital infrastructure has become one of the fields where that competition is most visible. More than 95% of global internet traffic travels through fiber-optic submarine cables, making these networks strategic assets for governments.
Chile is seeking to take advantage of its Pacific location to transform itself into a digital hub connecting South America with the Asia-Pacific region. One of the most ambitious projects is the transoceanic cable known as the Humboldt Cable, which aims to link the Chilean coast with Oceania and facilitate a direct connection with Asia.
But the debate intensified when the possibility emerged of a cable that would directly connect Chile with Hong Kong, with the participation of Chinese companies. The initiative raised concern in Washington, where U.S. officials warned about possible security risks associated with control of critical infrastructure by companies linked to Beijing.
The episode reflected the extent to which technological decisions can become matters of international politics. What initially appeared to be a connectivity project ended up turning into a subject of diplomatic debate between governments.
El Presidente de la República, José Antonio Kast, junto a su gabinete de ministros y subsecretarios.
Estamos #TrabajandoParaUsted 🇨🇱 pic.twitter.com/QwWZeUiZYw
— Gobierno de Chile (@GobiernodeChile) March 12, 2026
Washington’s expectations
The arrival of Jose Antonio Kast in power has generated expectations in certain political sectors of the United States. His ultraconservative profile and his affinity with leaders of the international right have been interpreted by some analysts as a sign that the new government could show greater closeness to Washington.
For the White House, Chile occupies a strategic position in Latin America. The country stands out not only for its institutional stability and its economic weight in the region, but also for its role in key sectors such as copper and lithium mining, resources that are essential for the technological and energy industries of the future.
In that regard, the U.S. ambassador today was very emphatic about Chile’s ties with China. Brandon Judd, who represents the government of Donald Trump in Santiago, said the submarine cable project “is over.” Judd told the press that “Chile can choose what it wants to do, but the point is that if Chile wants to be our partner, and if we want to be Chile’s partner, we have to learn what is best for both countries.”
The U.S. ambassador ultimately issued a clear warning about the controversial project. “The owner of this cable is not Chile, it is another country. So sovereignty will be taken away. We will never be able to work together when we have to worry about the security of the information we share,” he concluded.
In that context, cooperation in areas such as critical minerals, technology, and digital infrastructure is emerging as one of the central pillars of the bilateral relationship in the coming years.
Limited room for maneuver in the Pacific
However, the possibility of a clear shift toward Washington faces evident limits. The Chilean economy depends deeply on trade with China, which absorbs a significant share of its exports. Any attempt at distancing could have important economic consequences for the country.
In addition, Chile’s diplomatic tradition has been characterized by avoiding rigid alignments and favoring an open and diversified foreign policy. Maintaining that balance becomes more difficult in an international environment marked by growing rivalry between major powers.
The challenge for the government of Jose Antonio Kast will be to navigate that environment without sacrificing the country’s economic interests or damaging relations with any of its main partners.
The dispute over submarine cables and digital infrastructure is only one example of a much broader competition that extends to sectors such as technology, energy, and global supply chains.
On that geopolitical chessboard, Chile occupies an increasingly relevant position because of its strategic location in the Pacific and its abundant natural resources. That importance explains why both the United States and China are seeking to strengthen their presence in the country.
For the new Chilean government, the challenge will be to turn that competition into an opportunity without becoming trapped by it. The way President Kast manages that delicate equation will determine not only the direction of Chilean foreign policy but also the role the country will play in the new geopolitical map of the Pacific.