US House Foreign Affairs chair warns of China role in Argentina contract bid
US House Foreign Affairs Committee chair Brian Mast has warned Argentina that participation by Chinese state-linked firms in a strategic infrastructure tender could affect US security interests. The Milei government pledged tender transparency and said it would not jeopardise its IMF programme.
In an exclusive statement to Reuters, US House Foreign Affairs Committee chair Brian Mast warned that the participation of a China Railway Construction Corporation subsidiary in Argentina's Buenos Aires–Bahía Blanca rail modernisation tender could damage US security interests. Mast's letter targeted the reported $2.4 billion contract, due to be signed by the end of June.
In a written reply, Argentine Economy Minister Luis Caputo said 'the tender process is being conducted in full compliance with international standards' and reminded counterparts that the Milei administration has not renegotiated the existing currency-swap line with China. Goldman Sachs Latin America economist Alberto Ramos said the third review of Argentina's $22 billion IMF arrangement is scheduled for mid-June and that the tender could feature in talks.
The MERVAL index slipped 0.4 percent after the news and the Argentine government's 2030 dollar bond widened by 2 basis points. The US Treasury confirmed it is tracking the procurement timeline, while Chinese Foreign Ministry spokesperson Lin Jian rejected the framing and said 'third-country commercial relationships should not be interfered with'. Bloomberg reported that similar US scrutiny could touch parallel infrastructure tenders in Brazil and Chile.
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