USA and China at war over Vaca Muerta, Hidrovía and Patagonia

The ongoing conflict between the United States and China has spilled over into Argentina, as both nations vie for global technological influence. Three key areas of Argentina's economy are being targeted by this struggle: Vaca Muerta, the Hidrovía waterway, and Patagonia. These sectors are essential to the country's economy and generate significant revenue.

The United States is keen to become Argentina's primary partner in these areas, while China has a temporary foothold in Argentina, supported by its digital infrastructure.

The issue intensified when it was revealed that Huawei would supply the CALF (Cooperativa de Agua, Luz y Fuerza) electricity provider in Patagonia, which is the largest in Argentina. CALF has been working with Huawei for years, utilizing their technology in Calfibra, its connectivity unit. Now, CALF is exploring the integration of Huawei's technology for a data center in the Neuquén Technological Park, including the deployment of a 6,600 km fiber optic network and 3,300 km of ducts.

This move has raised concerns in the United States, as they view this infrastructure as not just a technological development, but a critical component of a region with some of the world's largest unconventional fossil fuel reserves.

US Ambassador Peter Lamelas emphasized the importance of data security in national security during the Energy Forum 2026, warning that China demands its companies to provide state access to all data passing through their technology and AI networks. However, Beijing denies these allegations, accusing the United States of reviving the "Chinese menace" theory and calling its actions "grave disrespect towards [Argentine] sovereignty."

Huawei, for its part, insists that it is a private company operating in Argentina since 2001 and complies with the laws of the countries where it operates.

Another aspect of the dispute is the Hidrovía Paraná-Paraguay waterway, which handles around 80% of Argentina's exports. The Brazilian-Japanese company Jan De Nul won a 25-year concession for this project, but faced accusations from DEME, a Belgian company associated with US companies, of having ties to Chinese entities, including Huawei.

This controversy was brought to the attention of the US Congress, with Republican Brian Mast alerting State Secretary Marco Rubio about alleged connections between Jan De Nul and Chinese state entities. Jan De Nul reassured that its operation would not involve Chinese companies or foreign state interference and would prioritize Western suppliers, primarily US companies. However, Huawei remains on standby for now.

The conflict also extends to Bariloche, where US-backed Artificial Intelligence mega-projects could be implemented. The CEB (Cooperativa de Electricidad Bariloche) operates with connections to Chinese companies, including Huawei, which has displayed its solutions in smart lighting, electric networks, sanitation, and urban monitoring at an Expo Smart City event.

The alternative for AI projects is Neuquén, where CALF is involved. The broader dispute goes beyond the selection of a technological provider, as the United States is promising investments but has set conditions that include not depending on China for handling data from Argentine companies and other strategic projects arriving in the country.