Steve Cortes, president and founder of the League of American Workers (LAW) said China’s use of Chile as a trade proxy for seafood imports into the U.S. compel’s “a firm response.”
“China’s aggressive takeover tactics in Latin America compel a firm response from the United States, especially when Beijing gains control over key Chilean industries like energy and fishing,” said Cortes. “The U.S. must not allow the Chinese Communist Party to circumvent America’s new trade agenda through use of intermediary countries.”
Cortes was a spokesman and advisor to President Donald Trump’s 2016 and 2020 campaigns, and previously traded global currencies and interest rates for 25 years for large international hedge funds.
His comments are in response to an April 22 Globe Banner report that China has been intensifying its investment in Chile, particularly in the country’s energy, mining and aquaculture sectors.
Analysts say the strategy helps Chinese companies reduce exposure to Western trade restrictions while expanding their global economic footprint, all while Trump works to make it harder for U.S. firms to trade with China.
In Chile’s energy sector, Chinese companies now control around two-thirds of the country’s transmission infrastructure. This control “gives Beijing significant economic leverage over the Andean nation” and “potentially threatens Chile’s national security,” reported The Diplomat.
The article points to China Southern Power Grid’s acquisition of major stakes in Chilean utilities as a key example.
Chinese companies have also made aggressive moves into Chile’s lithium industry. Chile holds one of the largest reserves of lithium in the world, and Chinese state-owned and private enterprises are acquiring production rights and forming joint ventures.
In 2018, Chinese-government owned Joyvio, a subsidiary of Legend Holdings, purchased one of Chile’s largest salmon producers, Australis, for $880 million.
Chile is the world’s third-largest salmon exporter and the U.S. second largest source of frozen salmon, behind Canada.
A report from China Hands Magazine said that U.S. President Donald Trump’s “tariff bullying” not only “strained hemispheric relations” but also “accelerated China’s role as a key partner for Latin America.”
“By establishing economic partnerships and infrastructure development projects, China is positioning itself as a pragmatic and cooperative actor in contrast to U.S. coercive tactics,” said the article.
These developments have drawn criticism from regional observers.
Euclides Tapia, a professor of international relations at the University of Panama, said “control of the Chilean energy sector is practically in Chinese hands.”
“It’s not just any area,” Tapia told Diálogo Américas. ”China does not direct its interest to minor sectors; it focuses its efforts on the critical infrastructure of the countries of the region.”
Environmental concerns are also growing. A report from Energy Transition said that “China’s strong influence and interest in the Latin American energy sector is undeniable.
“Investments flow mainly into energy infrastructure, raw material extraction, and renewable energies,” said the report, which added that this trend “undermines Latin America’s efforts to shift away from environmentally damaging extractive industry practices.”
Despite the scale of foreign control, Chile has not implemented major restrictions on investment. With U.S.-China tensions expected to persist, analysts suggest China will likely replicate its Chilean strategy in other parts of Latin America to secure trade resilience and critical resource access.