"Argentine government's bidding process highlights the competition between China and the US in Latin America." According to Bloomberg, on June 7th, the Argentine government awarded a 25-year contract for key trade routes upgrade to companies with ties to China, while businesses backed by American interest groups were unsuccessful in the competition. The US-based businesses expressed dissatisfaction.
Argentine government officials announced late at night on the 4th local time that Belgian dredging company Jan de Nul NV had won the bid to expand and maintain the waterways of the Paraná River. The report specifically mentioned that Jan de Nul’s partner in this project, Argentine company Servimagnus SA, has long had business cooperation with Chinese state-owned enterprises.
This waterway is a crucial transportation route for imports and exports in the Southern Cone region, which includes Chile, Argentina, and Uruguay. It extends from Buenos Aires towards the interior, passing through Rosario, the world's largest agricultural product loading center, and continues further upstream. Deepening this key waterway is expected to require an investment of approximately $10 billion.
The losing party is another Belgian dredging company, DEME Group NV, which receives support from various American interest groups.
Miley government gives the bidder the right to object, with the deadline being later in the week.
On February 8, 2026, in Rosario, San Fili, Argentina, a drone captured footage of a cargo ship navigating along the Paraná River. The Paraná River is a major route for Argentina’s food exports. Reuters
This result has caused dissatisfaction among Great Lakes Dredge & Dock Corp., the American partner of the Demi Group, who are evaluating possible responses. “We are disappointed by this outcome,” said Chris Gundsten, senior vice president of project services at the company. “This is a negative signal for American investors.”
Reports describe how this winning bid may put Argentine President Macri in an awkward position. Macri had banned foreign state-owned companies from bidding, and this move was widely seen as part of Trump’s efforts to exclude “Chinese influence.” However, his subordinates awarded the contract to a joint venture that some Republicans warned was nothing but a “Beijing front.”
In fact, it is not the first time that Big Lake Company has made a big deal about the connections between its bidding competitors and the Chinese side in order to secure the contract. Previously, they even used the so-called 'Chinese influence' as a pretext to create trouble, thereby putting pressure on the Milley government during the bidding process.
It is worth noting that Yang Denuo has been responsible for the dredging work of the Paraína River since the 1990s. Demi, supported by the Great Lake Company, previously operated businesses in China and formed a partnership with a Chinese state-owned enterprise to participate in the previous bidding process for the franchise rights of the Paraína River.
According to this standard, does Great Lakes, which supports Demi, not also become a “entity influenced by China”?
Although over the past twenty years, Servi Magnas and Chinese companies have carried out several cooperation projects at the mouth of the La Plata River and along the Atlantic coast, the joint venture firmly denied any Chinese involvement in the new project on the Paraná River.
The report also stated that at the end of last year, during the political and market turmoil in Argentina, the Trump administration provided assistance to Milaine. This seemingly ordinary infrastructure bidding quickly took on geopolitical implications. Seeing China's growing influence in Latin America, the Trump administration was reestablishing its own influence in the region. At that time, the administration advised Milaine that Argentine relations with China should be limited to the trade sector.
The Paraná River has thus become a focal point of negotiations. This waterway is not only a vital economic artery for Argentina, being the main route for most of its food exports and imports, but it is also crucial for its inland neighbors like Paraguay and Bolivia. Brazil also uses this waterway to export iron ore.
Panama-based consulting firm Talasonomica’s Argentine shipping infrastructure expert, Antonio Sánchez, pointed out that the recent closure of the Strait of Hormuz in the Middle East serves as an example. He said, “Infrastructure was previously evaluated mainly from economic or production perspectives, but now it also has geopolitical value.” Sánchez also mentioned the recent involvement of the U.S. Army Corps of Engineers in projects to maintain South American waterways.
The Director of the Latin America Program at the Stearns Center, a nonpartisan think tank in the United States, Benjamin Gadden emphasized that the White House officially stated its stance towards the Americas in the National Security Strategy last November. It was pointed out that American alliances must be based on weakening external hostile influences—ranging from controlling military facilities, ports, and critical infrastructure to acquiring strategic assets.
Gaidan said that this strategy was concretized at the beginning of this year. At that time, Panama terminated its contracts with China for ports along its canal. As a countermeasure, China took action in response.
Therefore, it may not be surprising that when the Demi Group’s bid for the Paraná River project received support from American institutions such as American Lake Dredging Company, KKR Group, and American International Development Finance Corporation, they also engaged in lobbying efforts in Washington to seek assistance.
Gaidan used the port of Callao in Peru as an example and said: "In many cases, the United States merely acts out of sour grapes, constantly complaining about the risks posed by China's investments and infrastructure financing in that region."
He added, “But this time, the United States has proposed alternatives to its own positions, reflecting a certain understanding: If the United States wants to surpass China, it must actually participate in the competition. Even if this will make the governments of the countries caught in between uncomfortable.”
Bloomberg frankly states that although Millet has moved closer to Trump and even attracted American investment in Argentina’s thriving shale oil areas, he also admitted that without trade with China, the Argentine economy would struggle to thrive. This may be one factor considered in the bidding for the Paraná River project, putting Millet in a difficult position.
"If Beijing believes that the United States will once again squeeze a Chinese enterprise out of major contract projects, like it did in Panama, then China is likely to feel discontent." Gedi said.
It is worth mentioning that Milley, a supporter of Trump, was rude towards China during the 2023 elections, calling China an 'assassin' and stating that she would sever relations with China. However, Milley has gradually softened her stance towards China since taking office.
"China is a great trading partner," Mireille stated in an interview this past January, "We have very good commercial relations with China. And we must try to trade with all the countries in the world. Any country that wishes to trade with us is welcome."
China has repeatedly emphasized that Latin America and the Caribbean are not anyone's 'backyard'. China-Latin American cooperation is not directed at third parties, and should not be interfered with by third parties. Regional countries have the right to independently choose their development paths and partners.
Meanwhile, the Trump administration continues to strengthen its hegemonic actions of interfering in Latin American affairs under the guise of 'Dong-Roism', which has raised concerns among many local scholars and media.
Some experts point out that excessive intervention by the United States in the choices of partners and development paths made by regional countries may not only exacerbate regional tensions, but also further stimulate Latin American countries' desire to seek strategic autonomy and promote diversified diplomacy.
