US ambassador warns of 'espionage risks' from Chinese tech in Argentina's Vaca Muerta

U.S. Ambassador to Argentina Peter Lamelas has again voiced strong opposition to the use of Chinese technology, specifically from companies like Huawei and ZTE, in the Vaca Muerta region. Lamelas cited significant "espionage risks" associated with these firms, asserting they are ultimately controlled by the Chinese Communist Party.

In a post on X (formerly Twitter), Lamelas stated that the legislation in China compels high-risk technology providers to "cooperate with the intelligence services of Beijing." He warned that this mechanism creates vulnerabilities for "espionage, cyberattacks, and network disruptions." Lamelas urged U.S. partners in the Americas to "rapidly switch to trusted providers" to safeguard their citizens and national sovereignty.

This stance aligns with previous warnings from U.S. officials. Juan Segura, the U.S. Deputy Assistant Secretary of State for Western Hemisphere Affairs, echoed similar sentiments recently. Lamelas himself had previously raised concerns during an AmCham Energy summit, alleging that Huawei aimed to spy for the Chinese Communist Party. He argued that China demands its companies share any data processed through their technology and artificial intelligence networks, all under the control of the Communist Party.

Lamelas challenged the notion of using Chinese technology in free-market economies, rhetorically asking why U.S. companies do not use Huawei equipment. He highlighted that American firms are global leaders in security and transparency, which is why they avoid Chinese technology deemed critical.

The conflict initially surfaced after WhatsApp messages revealed Lamelas urging a manager at CALF (Cooperativa Provincial de Servicios Públicos y Comunitarios de Neuquén Limitada) to abandon negotiations with Huawei for a data center in Vaca Muerta. He also warned of potential visa restrictions for executives proceeding with the Chinese tech company. CALF reportedly described the incident as undue pressure and escalated the matter.