Chile has put a planned Chinese astronomical observatory project under review, potentially dealing a blow to Beijing's scientific ambitions in Latin America. The Chilean foreign ministry on March 19 announced that the Ventarrones Astronomical Park, set to be built in the Atacama desert, is “under review, it is not cancelled,” without elaborating on the reasons, AFP reported.

The project, initially agreed upon during President Xi Jinping's visit in 2016 through an agreement with Chile's Catholic University of the North (UCN), would place a Chinese observatory in one of the world's premier astronomical sites. The Atacama desert is renowned for its exceptionally dark skies and already hosts numerous international observatories.

The US embassy in Santiago, without directly addressing the observatory, expressed concerns about China's Civilian-Military Fusion Strategy and the links that exist between the country’s military, civilian space programmes and academic and scientific organisations. In a statement to AFP, the US embassy stated that “we cannot live in a world where China has more influence and presence than we do in our region.”

Similar concerns have long been voiced by analysts in the West. “Beijing deliberately obscures these military applications behind a veneer of civilian research and international scientific cooperation, even keeping their own research partners in the dark about the true scope of their activities,” Liza Tobin, senior director for Economy at the Washington-based Special Competitive Studies Project and former China director at the US National Security Council, told Newsweek.

In response to the allegations, the Chinese embassy in Santiago said the observatory was "an open and transparent international initiative," as quoted by AFP.

It also pointed out, without specifically referring to the US, that "certain countries (that) maintain hundreds of military bases abroad with tens of thousands of stationed troops... allow themselves to criticise and interfere in legitimate technological cooperations between other nations."

This dispute over an astronomical facility underscores the intensifying geopolitical competition between Washington and Beijing for influence in Latin America, which the Trump administration sees as its "backyard" under a revamped Monroe Doctrine. While the US has historically considered the region within its sphere of influence, China has made significant inroads over the past decades, becoming the largest trading partner for several countries, including Chile, and recruiting two-thirds of Latin American nations into Xi's trademark Belt and Road Initiative.

Chile's reconsideration of this scientific project could signal shifting dynamics in the region's approach to navigating the US-China rivalry, with potential implications for future technological and scientific cooperation initiatives with Beijing. Given President Gabriel Boric’s recent support for Chile becoming more active on the geopolitical stage, the country’s review of the Chinese observatory project indicates progress in this regard.

Yet Chile has forged increasingly close relations with China in recent years, with Chinese companies now controlling 60% of the country's electrical grid, according to Newsweek. The deepening economic partnership is further evidenced by China's position as the destination for 40% of Chilean exports.

China, meanwhile, has set up space infrastructure across multiple countries beyond Chile, including Kiribati in the Pacific Ocean, Namibia, Pakistan and Venezuela, prompting international concern about potential dual-use capabilities, the Washington Post reported.

In Venezuela, Chinese-built ground stations support a satellite launched by Beijing, while Bolivia hosts the Amachuma Station, which operates round-the-clock monitoring satellites thousands of kilometres from mainland China.

The Asian superpower has also expanded its presence to Antarctica, where it has deployed the TianMu Time Domain Astronomical Observation Network – comprising 100 small telescopes – and maintains two research stations, according to Wired. Mobile spacecraft are reportedly utilised to track satellite launches and intercontinental ballistic missiles globally.

Analysts believe these stations form the backbone of China's space infrastructure network, performing essential functions including tracking, telemetry and command operations that enable satellite communications, data retrieval and trajectory control. The facilities also allegedly conduct space object surveillance, enhancing Beijing's ability to monitor orbital activities.