The announcement set off alarm bells in Washington and other Western capitals. Credit: David Monniaux / Creative Commons
China is determined to expand its influence over the world’s digital infrastructure, and Latin America has become one of its most strategic targets. Through a new generation of submarine internet cables, the Chinese government aims to strengthen connectivity between Asia and the region and reshape the balance of power in global communications. But for many Latin American countries, this ambition comes at a time when faster, cheaper and more reliable digital connections are desperately needed.
In an increasingly digital world, controlling critical infrastructure is no longer just an economic issue, but a geopolitical one. Often referred to as the hidden highways of the digital economy, undersea internet cables power nearly every online activity, from video calling and online shopping to social media and cloud computing. Those who build and manage these networks have influence over data flows, costs, and technology development.
The invisible backbone of the internet
Submarine cables are fiber optic systems installed on the ocean floor that connect continents and allow vast amounts of data to be transmitted at incredible speeds. Despite the public interest in satellites, about 99 percent of international data traffic relies on these undersea cables, according to the International Telecommunication Union.
Although its importance is rarely noticed by the public, its influence is constant. The speed, stability, and price of the Internet all depend on the quality and capacity of these cables, making them essential to the modern economy and daily life.
Strategic agreement with Chile
China’s latest move in the region focuses on a proposed undersea cable linking Chile directly to Hong Kong, dubbed the “Chile-China Express.” The project, which has been agreed in principle with Chilean authorities, aims to improve connectivity between Latin America and Asia and reduce dependence on routes dominated by Europe and the United States.
However, the initiative has raised concerns due to a lack of transparency. So far, there has been little public information regarding schedule, budget, and technical details. Critics say this lack of transparency is fueling suspicion, but supporters say similar secrecy surrounds projects led by American and European companies.
Western concerns and double standards
The announcement set off alarm bells in Washington and other Western capitals. A key concern is the close relationship between Chinese companies and the state, particularly regarding data access and information cooperation. Under Chinese law, companies may be required to share data with government authorities even when operating overseas.
However, this criticism is often accused of hypocrisy. The United States and several large European countries also exercise significant control over the data handled by companies under their jurisdiction. For Latin America, this debate highlights the longstanding dilemma of choosing between competing world powers while pursuing the best economic and technological outcomes.
Digital power and geopolitical influence
Control of submarine cables has increasingly geopolitical implications. These networks have digital governance, data privacy, and national security implications, not just for the countries that host the cables, but for the entire region they connect to.
For Latin America, which has until now relied on infrastructure built by American and European companies, China’s entry will bring about diversification. At the same time, questions arise about long-term dependence and strategic autonomy in the digital sphere.
Expanding China’s technological footprint
Chinese companies have spent years building expertise in designing, manufacturing and installing submarine cable systems. According to a report by the China Academy of Information and Communication Technology, Chinese companies have already laid more than 70,000 kilometers of submarine cables across the Atlantic, Pacific and Indian Oceans.
By the end of 2024, China had invested in 17 international submarine cable systems already in operation and was involved in several more under construction. This rapid expansion has established Chinese companies as major global players in fields once dominated by Western companies.
Reduce costs and development opportunities
Supporters of China’s involvement argue that it has helped expand global production capacity and reduce network costs, especially in developing countries. Increased connectivity can attract investment in areas such as artificial intelligence and cloud computing, while enabling business models based on e-commerce, telemedicine, and remote services.
Seen from this perspective, submarine cables are comparable to historic trade arteries like the Suez Canal, shared infrastructure that supports global economic growth rather than serving the interests of a single nation.
Global contractors and regional projects
Companies such as HMN Tech and FiberHome Marine Network Equipment are leading international contractors delivering and upgrading cable systems throughout Asia, Africa and island nations. HMN Tech alone has supplied more than 100,000 kilometers of submarine cable systems to more than 70 countries.
Recent projects such as a cable network linking the islands of the Maldives have been hailed locally as improving high-speed coverage and strengthening digital resilience, a key element of economic development in vulnerable regions.
Latin America’s delicate balance
As data traffic continues to proliferate around the world, the need for resilient and diverse cable networks has become urgent. For Latin America, Chinese investment offers the promise of faster connections to Asia and technological growth.
But the challenge lies in balancing opportunity with prudence. Submarine cables may be invisible on the ocean floor, but their influence runs deep into national economies, political relations, and the digital lives of millions of people.
