Chile is the newest Latin America nation caught up in a U.S.-China power confrontation.

The nation, which recognizes Washington as its primary foreign investor and Beijing as its biggest trade partner, is under pressure from the U.S. regarding a subsea cable initiative that involves China.

In an unexpected announcement, U.S. Secretary of State Marco Rubio stated late last week that the Trump administration would enforce visa restrictions on three Chilean officials associated with a digital cable venture proposed by Chinese companies, citing security concerns.

Chilean President Gabriel Boric, set to leave his position on March 11, denounced the visa restrictions and dismissed claims that the nation “endorses actions that endanger our security or that of the region.”

Chile’s departing left-wing administration later indicated that one of the targeted officials was Minister of Transport and Telecommunications Juan Carlos Muñoz, declining to identify the other two.

The U.S. envoy to Chile, Brandon Judd, defended the visa measures on Monday, telling reporters that it is Washington’s “sovereign right to act when we sense that the security of the region is at risk,” as reported by The Associated Press.

This conflict arises just before a summit of Latin American leaders in Miami, Florida — and two weeks ahead of the new right-wing government taking charge in Chile.

This also signifies a significant challenge for José Antonio Kast‘s forthcoming administration, succeeding the victory of the right-wing candidate in last year’s elections.

Experts suggest U.S. President Donald Trump, aiming to counteract China’s regional influence, is delivering a clear message to Latin American nations.

The tensions between the U.S. and Chile were, primarily, “a measured alert” to the Kast administration that choices concerning strategic infrastructure will be regarded as geopolitical alignment decisions — not neutral bids, according to Mariano Machado, Americas principal analyst at risk intelligence firm Verisk Maplecroft.

Certainly, digital undersea cables constitute the foundation of the global internet and telecommunications framework, facilitating everything from international calls to financial operations. According to some estimates, around 95% of international communication traverses these mostly invisible data super-highways.

“The immediate external outcome is that Kast’s forthcoming diplomatic visits to Washington – particularly, in the Shield of the Americas summit – will serve as preliminary assessments of how Chile navigates partnerships under duress,” Machado stated.

“As competition between the U.S. and China escalates in the region, Chile’s goal of becoming a ‘digital hub’ will be viable only if geopolitical issues are addressed upfront, not rectified post-crisis,” he elaborated. “Successful arrangements will be those that establish transparent governance and reliable security assurances early enough to maintain financial viability.”

China’s diplomatic mission in Chile has allegedly accused the U.S. of “clear disregard for the sovereignty, dignity, and national interests of Chile” in light of the Trump administration’s visa restrictions against Chilean officials.

China’s economic and strategic sway in Latin America is firmly established, even though it is perceived to be the subject of Trump’s so-called “Donroe Doctrine” — a blend of Donald Trump and the Monroe Doctrine, which pertains to a 19th-century foreign policy stance asserting U.S. influence over the Western Hemisphere.

In recent weeks, for instance, Panama’s supreme court ruled against CK Hutchison, based in Hong Kong, declaring that a concession held by a subsidiary of the company to operate ports at either extremity of the Panama Canal was unconstitutional. This decision was widely perceived as a win for Trump’s regional security aspirations.

The U.S. has also intensified pressure on Cuba’s communist regime, threatening tariffs on any nation that supplies oil to Havana, and recently executed an extraordinary military operation to oust Venezuelan President Nicolás Maduro.

President Donald Trump presented a nearly two-hour State of the Union speech on Tuesday, placing significant emphasis on the economy, which he proclaimed was on the verge of thriving.

The president gave his hallmark annual address while observing his approval ratings on the economy decrease ahead of the 2026 midterm elections, which are less than nine months away. These elections pose a risk of transferring congressional power from Republicans and jeopardizing Trump’s influence in Washington.

Here are five key points from Trump’s State of the Union:

Trump advocated for the establishment of a government-supported 401(k)-like initiative for U.S. employees lacking a retirement matching program from their employers.

“My administration will provide these often-overlooked American workers—wonderful individuals, the backbone of our nation—access to the same retirement plans available to every federal worker,” Trump stated. “We will match your contribution with as much as $1,000 each year.”

He mentioned that the initiative would “guarantee that all Americans benefit from a rising stock market.”

Trump and his administration have often faced criticism for highlighting stock market achievements as proof of a thriving economy, while millions of Americans remain outside the market.

A White House official, who requested anonymity to address the initiative, indicated it would provide eligible employees access to savings options resembling the Thrift Savings Plan already available to federal employees, which they explained “offers an effective savings program that includes a government match and provides diversified, index-based investment choices and portfolio options.”

The initiative would utilize an existing program referred to as the “Savers Match” tax credit established under the 2022 Secure 2.0 law, designed to provide an annual match of up to $1,000 for low-income workers beginning in 2027.

The president reiterated his plea to Congress to enact laws prohibiting large institutional investors from purchasing single-family homes, requesting Congress to formalize an executive order he previously signed.

“I am urging Congress to make this restriction permanent, because homes are for people, and that’s what we truly desire,” Trump stated. “We want homes for individuals, not corporations; corporations are thriving.”

Trump’s appeal to restrict institutional buyers from acquiring homes aligns with populist proposals from the progressive left, which has criticized the president regarding affordability. Democrats unveiled another strategy earlier Tuesday to limit the capacity of larger investors to purchase homes, right before the State of the Union.

Trump asserted that the economy is “booming like never before,” although polls consistently indicate a decline in voter approval of his economic management, with Democrats criticizing him and Republicans regarding affordability.

The president also took credit for what he claimed was the reduction of inflation, the bane of his predecessor and rival, former President Joe Biden.

“Inflation is sinking,” Trump declared. “In just 12 months, my administration has lowered core inflation to its lowest point in over five years.”

The consumer price index, a crucial metric for inflation, increased by 2.4% in January compared to a year prior, according to the Bureau of Labor Statistics’ latest figures. This was down from 2.7% in December and lower than anticipated. Excluding volatile food and energy, the core CPI rose by 2.5%, marking the lowest figure since April 2021.

Democrats expressed their discontent with the president during certain sections of the speech but largely refrained from overtly disrupting his statements.

Trump challenged Democrats for remaining seated when he requested lawmakers to “stand up and show your support” if they concurred that the government’s primary obligation is “to safeguard American citizens, not illegal immigrants.”

This led to a brief exchange between Trump and Representatives Ilhan Omar, D-Minn., and Rashida Tlaib, D-Mich. Omar hails from Minnesota, where two U.S. citizens were fatally shot this year by federal immigration agents executing Trump’s deportation agenda.

Representative Al Green, D-Texas, was removed from the chamber for the second consecutive year during Trump’s speech after he displayed a sign reading “Black People Aren’t Apes.” Trump’s personal social media account recently shared an overtly racist video portraying the Obamas as apes.

Trump centered most of his speech on domestic policy and political matters, avoiding delving into his foreign endeavors.

Nevertheless, the president did briefly mention Iran, where he has initiated a substantial military buildup and hinted at a potential strike.

“We are in talks with them. They seek a deal, but we haven’t received those covert words: ‘We will never possess a nuclear weapon,'” Trump indicated regarding Iran. “I prefer to resolve this issue through diplomacy. However, one thing is sure, I will never permit the world’s leading supporter of terrorism, which they undeniably are, to attain a nuclear weapon.”

Trump’s focus on home affairs likely reflects the political landscape. Democrats have gained an early advantage in polling for the midterms and have largely won the 2025 off-year elections by concentrating on affordability and household matters.

Republicans seemed to welcome the lifeline.

“What I was hoping he’d discuss were the concerns that parents worry about when they lie down at night unable to sleep. And he did,” remarked Senator John Kennedy, R-La, following the address.

— CNBC’s Justin Papp and Eamon Javers contributed to this report.