China alleges US meddling as Huawei courts Argentina oil region

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China alleges US meddling as Huawei courts Argentina oil region

China alleged the Untied States was meddling in Argentina after American embassy officials opposed a contract that would expand the footprint of Chinese telecommunications giant Huawei Technologies Co.

US officials threatened to deny or revoke US visas for directors of power distributor CALF in Neuquén Province, home to Argentina’s shale oil fields, if they went ahead with the Huawei deal. 

“These practices fully reflect the arrogance and prejudices of the US, constituting a significant disrespect of the sovereignty of other countries to the detriment of free-market values,” China’s Embassy in Argentina wrote on X.

CALF issued a statement saying that the threat was sent to one of its managers via text message and that it had requested the US embassy use a more formal channel for talks. Huawei already has contracts with CALF, but the companies have been in talks to grow the relationship.

“CALF will continue to evaluate proposals from suppliers around the world – American, European and Asian alike – using the same criteria it has always applied: quality, price and financing,” the statement said. CALF operates a “multi-vendor network” with Huawei featuring alongside US and European providers. 

US Ambassador Peter Lamelas rejected the idea that visa measures amounted to punishment. 

“Every country protects its house, the United States isn’t the exception,” Lamelas posted on X Thursday afternoon. “Denying or revoking a visa isn’t a punishment, it’s a decision to protect the nation’s security and interests.” 

Argentina’s Foreign Ministry didn’t immediately respond to a request for comment. Neuquén Province declined to comment. CALF is owned by a cooperative, not the province itself.

President Javier Milei has openly allied with US President Donald Trump, but he’s also welcomed more trade and investment from China in a pivot from his fierce criticism of Beijing as a candidate three years ago. 

Development of Neuquén’s oil and gas basin has supercharged under Milei, drawing new investments from US drillers including Chevron Corp and Continental Resources Inc, as well as interest from a broader set of companies in the Permian Basin in Texas looking to export their shale expertise.

As well as the vast shale resources, Neuquén has long been home to a Chinese space station that the US has expressed concern over in the past.

by Jonathan Gilbert, Bloomberg

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