US and China clash over risks of Chinese technology in Latin America

US and Chinese diplomats have publicly exchanged accusations over potential espionage risks linked to Chinese technology companies in Latin America. US Assistant Secretary of State for Western Hemisphere Affairs Juan Pablo Segura urged Washington’s partners in the region to switch to products from trusted suppliers. This was reported by the South China Morning Post .

Segura named the telecommunications companies Huawei Technologies, ZTE and Hytera, surveillance equipment manufacturers Hikvision and Dahua, as well as drone maker DJI. According to him, Chinese legislation obliges these suppliers to cooperate with Beijing’s intelligence services, allegedly creating risks of espionage, hacking attacks and network shutdowns.

The US official described these products as high-risk technologies. His post was almost immediately shared by the US Embassy in Panama. Over the weekend, the statement was also shared by the US Embassy in the Dominican Republic and Peter Lamelas, Washington’s chief representative in Buenos Aires.

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The Chinese Embassy in Panama rejected Washington’s accusations, stating that they have no factual basis. The Chinese diplomatic mission also accused the United States of global espionage and technological pressure on countries in the region through a broad interpretation of national security issues.

Chinese Foreign Ministry spokesperson Lin Jian called Segura’s claims fabrications that distort the facts and urged the United States to stop political manipulation and interference with the right of sovereign states to independently choose cooperation partners. The Chinese Embassy in Argentina separately stated that the Chinese government does not and will not require companies to transfer, collect or store data in violation of local legislation.

The dispute comes amid strategic rivalry between the United States and China in Latin America, including a struggle for influence around the Panama Canal. In a White House report published on August 13, Panama, the Dominican Republic and Argentina were named as part of the so-called shadow transshipment network. According to the US side, this network enables Chinese goods to enter the US market under a new national identity.