President Javier Milei is considering inspecting a Chinese space facility for contract compliance, amid growing concerns about the Chinese government’s influence within Argentine territory. Beijing insists that its deep space station in Patagonia serves purely peaceful objectives, but doubt lingers about the possibility of military surveillance.
The Espacio Lejano Station began operating in 2018 in a remote area of Patagonia within the province of Neuquén after it was agreed upon in a deal between Beijing and Buenos Aires in 2012.
On April 2nd, Laura Richardson, the commander of United States Southern Command, visited Buenos Aires to meet Javier Milei and raised concerns about the deep space station, intended for radio astronomy, radar observations, and spacecraft missions of China.
In a statement before Congress last month, Ms. Richardson underscored the urgency of the situation, asserting that the US is “engaged in a geopolitical competition” with China and that the station provides the People’s Liberation Army (PLA) with global tracking and surveillance capabilities which “could translate into global military capabilities.”
The meeting, occurring only a few days after the visit of William Burns, the head of the Central Intelligence Agency (CIA), indicates a deepening of relations between the US and Argentina, both seeking to counter China’s influence in Latin America.
Demonstrating his commitment to bolstering the American-Argentine relationship, President Javier Milei is considering an inspection of the space facility in response to Richardson’s recent apprehensions.
Argentina banned in its own territory
Located on 200 hectares of land and surrounded by a 2‑meter high fence, the space station has triggered all kinds of speculation as it is not routinely inspected by Argentine authorities and access is severely restricted.
The agreement cited the Chinese National Agency for Satellite Launch, Tracking and General Control (CLTC) of the PLA as the sole operator of the station. It gave it jurisdiction over the area for 50 years, with tax and duty exemptions. Updated terms in 2014 reinforced Argentina’s inability to intervene, with interruptions mandated to be “duly anticipated.”
The lack of transparency and Argentine oversight within its territory has stirred unease among locals and sparked controversies domestically and internationally. Concerns have been raised about the possibility of China using the space station shrouded in secrecy to develop an alternative global positioning system, BeiDou, with dual applications for both civil and military ends.
Although amendments in 2016 aimed to address concerns about dual-use capabilities, emphasizing the station’s prohibition for military applications, the inadequate oversight makes it difficult to ensure that China is adhering to the contractual terms.
The Chinese Embassy in Argentina defended the station this weekend as a “space technological cooperation facility” that scientists from both Argentina and China have access to for scientific research. But the agreement between the countries stipulates that only 10% of the resources may be used by the Latin American country.
Why did Argentina accept these concessions?
The presence of a secret Chinese operation in the middle of Patagonia raises questions about the concessions made by Argentina.
The project began under the presidency of Cristina Elisabet Fernández de Kirchner, who formed a strategic partnership with Beijing at a time when Argentina was desperately seeking investment and therefore becoming involved in China’s Belt and Road Initiative.
The economic crisis that gripped the country after 2009 made Beijing’s invitation to form commercial ties appealing. Facing high inflation and billions of dollars in debt, Kirchner’s government accepted a 10.2 billion dollar currency swap to stabilize the peso, thus forming a new alliance that paved the way for China to begin plans for space exploration in Argentina at the Espacio Lejano Station.
However, enormous debts have accumulated across Latin American countries with China issuing a total of 136 billion dollars of loans to financially stressed countries in the region between 2005 and 2022 through foreign domestic investment (FDI), according to Bloomberg. Argentina, faced with a debt of 17 billion dollars to China, had to turn to the IMF to repay part of its currency swap.
In a testament to the enduring bilateral relationship between the US and Argentina, a ceremony marking the transfer of the US’ donation of the C‑130 Hercules military transportation aircraft was also held during Ms. Richardson’s visit. This comes as a blow to China’s aspirations, as it had hoped to secure its influence in the region by providing the Latin American country with military equipment.
A fluctuating alliance
Javier Milei, president of Argentina since December 2023, initially projected a hardline approach towards China, claiming that he would not do business with China or “any communist country,” according to CNBC News.
However, it seems the president has now shifted gears and adopted a more pragmatic approach to relations with China, admitting in an interview with Bloomberg that “giving up China is difficult, even for the Argentine anarcho-capitalist.” Commercial ties with China have not changed significantly under Milei’s government for now, and it remains one of Argentina’s major trading partners.
Whether Mr. Milei will continue to allow China to conduct secretive space exploration in Neuquén remains uncertain.
