Ventarrones Observatory Construction Site in Chile. An aerial image of the Ventarrones Astronomical Park rising in the Atacama Desert about 55 miles by road from the city of Antofagasta in northern Chile. The future observatory is a collaboration between the Chinese Academy of Sciences and Chile's Universidad Católica del Norte. October, 2024. Credit: via Didi Kirsten Tatlow
In a potential setback for China's growing influence in Latin America and its ambitions in space, the Chilean government is reviewing an agreement for a joint astronomical observatory in Chile following a Newsweek investigation of the deal.
"We are aware of it, so we are revising and analyzing it," Benjamin Aguirre Romero, the director of strategic communications of Chile's Ministry of Foreign Affairs, told Newsweek via email following Chilean media reports that the project between the Chinese government and a Chilean private university had been canceled.
The decision comes amid a deepening geopolitical rivalry between the United States and China that has become clearly evident in Latin America, with the administration of President Donald Trumpputting Panama under pressure for a deal to allow an American company to regain control of the Panama Canal from a Chinese company, Hong Kong's Hutchison Ports.
Newsweekreported last December that the observatory at Cerro Ventarrones in Chile's Atacama Desert-a joint project of the Universidad Católica del Norte (UCN) and China's National Astronomic Observatory of the Chinese Academy of Sciences (NAOC)-would monitor objects orbiting Earth and seek new stars-but that it could also conduct research for China's fast-growing military space program, under an agreement that left Chilean counterparts largely in the dark. Work had begun on the 10 square-mile Ventarrones Astronomical Park on a rocky plain beneath an 8,600-foot Andean peak.
Romero said that the project had not been canceled but that it was being analyzed by Foreign Ministry lawyers: "The Ministry of Foreign Affairs has contacted UCN authorities and the Chinese Embassy in Chile to gather detailed information about the initiative. Additionally, the legal department of the Chilean Ministry of Foreign Affairs is analyzing the agreement's nature."
"We should finalize the analysis before making any pronouncement," Romero said.
On March 6, AthenaLab, a Chilean security research center, published a report that cited Newsweek's investigation and said that such observatories typically track stars, but also "monitor satellites, gather intelligence, and support military space operations."
Chilean media Ex-Ante, quoting unnamed "high-ranking government sources," reported that the project had generated strong concerns in the United States, which were communicated to the Chilean government in January by the former ambassador, Bernadette Meehan. Representatives of the U.S. State Department did not immediately respond to Newsweek's request for comment.
"The Biden administration reportedly conveyed that
the Cerro Ventarrones project was not simply an academic astronomy project, as had been publicly claimed, but rather an infrastructure capable of tracking satellites in orbit, which could have strategic and defense implications," Ex-Ante said.
In an article in Ex-Ante published on Saturday, China's ambassador, Niu Qingbao, called the project a "legitimate technological cooperation." The political section of China's embassy in Santiago referred Newsweek to the article when asked to comment.
"This exchange is carried out under the principles of mutual respect and benefit, equality, and friendly voluntariness, in strict compliance with Chilean laws and regulations, and with the support of the governments, universities, and research institutions of both countries," Niu told Ex-Ante.
"The binational astronomical facilities under construction operate with complete transparency in their purposes and operations, lacking any ulterior motives," the Chinese envoy said.
"It is worth highlighting the paradox that certain countries maintain hundreds of military bases abroad with tens of thousands of troops stationed there, while allowing themselves to criticize and interfere in legitimate technological cooperation between other nations. This attitude represents a typical example of hegemony and power politics, something the Chilean people clearly perceive. Any attempt to interfere with or obstruct legitimate astronomical cooperation between China and Chile will fail," Niu said.
The Universidad Católica del Norte did not respond to a request for comment.
Romero, the Chilean government spokesperson, said: "We are not reviewing any other dimension of our bilateral relationship with China."
In December, Newsweek had reported that Western intelligence sources with direct knowledge of the agreement warned that the Chinese partner could potentially deploy special security measures that could exclude the Chileans from part of the site, which was being built and paid for by the Chinese state. China was initially investing $80 million in building and equipping the site.
Chile has grown increasingly close to China in recent years. Today, 60 percent of its electrical grid is owned by Chinese companies and 40 percent of its exports go to China.
"We have a positive and strong relationship with China as well as with all of our partners abroad. Our relationship has a framework defined by bilateral agreements and aligned with international law principles," Romero said.
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This story was originally published March 18, 2025 at 4:00 AM.