The United States’ top representative in Argentina on Thursday issued a strong warning to President Javier Milei’s government, stating the involvement of Chinese companies in strategic sectors of the economy could hinder the arrival of new foreign investment.
Speaking at the AmCham Energy Forum 2026 in Buenos Aires, US Ambassador to Argentina Peter Lamelas raised concerns over Chinese technology and infrastructure in and around Vaca Muerta, Argentina’s vast shale oil and gas formation in the south.
The remarks were the latest example of pressure from Washington on Buenos Aires to limit Beijing’s role in strategic sectors of Argentina’s economy.
“China requires companies to give the Chinese state access to any data that passes through its technology and AI networks. Everything is controlled by the Chinese Communist Party. That is not acceptable, and it will not help attract foreign investors to Vaca Muerta either,” said Ambassador Lamelas.
The remarks, delivered before an audience of investors, business leaders and politicians, underscored Washington’s growing concern over Chinese involvement in Argentina’s strategic infrastructure.
“Data security is a matter of national security,” Lamelas said, arguing that international companies looking to invest in Argentina need guarantees that their information will be protected and that they will operate on trusted networks.
“Energy data security is national security, the national security of both countries,” Lamelas continued. “US and companies from around the world want to enter Argentina,” but need to operate on “trusted networks” that ensure the protection of their information, said the envoy.
The ambassador specifically targeted Chinese-based firms, alleging they were subject to requirements that could give the Chinese state access to data transmitted through their technology and networks.
He linked those concerns directly to Vaca Muerta, saying the issue went beyond commercial competition between technology providers and had become a strategic security concern for Washington.
“This will not help attract foreign investors to Vaca Muerta,” Lamelas warned
Lamelas went on to defend the role of US companies, describing them as world leaders in security and transparency. US firms were increasingly avoiding critical Chinese technology because of the risks it could pose to the protection of sensitive information, he argued.
The comments formed part of a broader presentation on Argentina’s energy potential. Lamelas said “energy will drive the world over the next three decades” and identified Vaca Muerta as a potential major source.
Huawei dispute
Lamelas’ intervention comes after he recently sent a letter to Neuquén electricity distributor CALF questioning its plans to reach a technology agreement with Chinese telecommunications giant Huawei.
CALF operates in Neuquén Province, home to Vaca Muerta and much of Argentina’s shale oil and gas production.
US officials have threatened to deny or revoke US visas for directors of CALF if the electricity distributor proceeds with the Huawei deal, according to reports by Bloomberg.
CALF made Lamelas’ request to halt the agreement public, prompting the ambassador to reiterate his concerns publicly.
The intervention drew a sharp response from China’s Embassy in Argentina, which accused Washington of interfering in Argentina’s affairs.
“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,” the Chinese Embassy said in a statement posted on social media.
The dispute highlights the delicate balancing act facing Milei’s government as it seeks closer ties with Washington while maintaining economic links with China, one of Argentina’s most important trading partners.
Milei has openly aligned his government with US President Donald Trump, but has also welcomed Chinese trade and investment, marking a shift from his fierce criticism of Beijing during his 2023 presidential campaign.
Vaca Muerta’s oil and gas development has accelerated under Milei, attracting fresh investment from US drilling companies and interest from a broader group of firms from Texas’ Permian Basin seeking to export their shale expertise to Argentina.
The strategic importance of Neuquén extends beyond energy. The province has long been home to a Chinese space facility, which has drawn concern from US officials over its potential military and intelligence applications, although Beijing and Argentina maintain that the station is used for civilian and scientific purposes.
Argentina also maintains a multi-billion-dollar currency swap arrangement with China, which was recently renewed for another three years. The agreement provides Buenos Aires with access to Chinese yuan and has been an important component of Argentina’s foreign-exchange reserves.
– TIMES/NA/BLOOMBERG