Technology, Data, and Digital Sovereignty: China’s Growing Presence in Latin America

Across Latin America and the Caribbean, Chinese technology is becoming increasingly embedded in the systems that support everyday life and government operations. From telecommunications networks and video surveillance systems to cloud services and emerging artificial intelligence (AI) applications, Beijing’s growing presence in the digital domain is fueling a regional debate over digital sovereignty, cybersecurity, and technological dependence.

As governments modernize critical infrastructure and expand digital services, questions are increasingly shifting beyond the technology itself to who controls the networks, platforms, and data that support essential functions. Beijing has sought to expand its role in sectors tied to connectivity, data management, and digital infrastructure as part of broader national strategies focused on technological innovation and global competitiveness.

This expansion is not occurring in isolation. It reflects broader Chinese government priorities outlined in the 15th Five-Year Plan and the “New Quality Productive Forces” strategy, which seek to position China at the forefront of the technologies expected to shape the global economy and digital landscape. According to the Brookings Institution, Beijing is investing heavily in sectors such as semiconductors, AI, quantum computing, robotics, biotechnology, and biomanufacturing as it seeks to transition toward higher-value-added industries.

As governments and businesses across Latin America adopt digital technologies, the region is becoming increasingly reliant on platforms, infrastructure, and supply chains developed and managed by Chinese companies.

Strategic and technical analysis

China’s strategy is not limited to selling telecommunications equipment. The Council on Foreign Relations (CFR) argues that the Digital Silk Road seeks to position China in strategic sectors through 5G networks, data centers, cloud services, AI, and platforms connected to critical infrastructure. The debate has evolved beyond questions of who builds telecommunications networks. Increasingly, policymakers and experts are asking who controls the data, software, and digital platforms that support sensitive government functions, critical infrastructure, and public services.

Víctor Ruiz, founder of the SILIKN cybersecurity center in Mexico, summarizes the logic behind this expansion: “China has maintained a long-term technological strategy aimed at expanding its international presence through digital infrastructure and technology agreements.”

He also explains why these offerings often gain traction. “These offers are often attractive due to their lower costs, increasing dependence on platforms and services controlled by Chinese providers.”

The CFR warns that the expansion of the Digital Silk Road has fueled concerns about digital surveillance, data governance, and state control of information systems, noting that Chinese companies have collaborated on monitoring capabilities in third countries, where Beijing authorities have offered training on real-time internet surveillance and censorship. Another important consideration is the legal framework governing Chinese companies. Chinese laws governing national security, intelligence, and data management have raised concerns among governments and analysts about the extent to which companies are required to cooperate with state authorities.

Vulnerabilities are no longer limited to hardware. An analysis by the Center for Strategic and International Studies (CSIS) notes that exposure extends to the cloud, software, AI, and interoperability managed by third-party providers — dependencies that are difficult to replace during a crisis or geopolitical tension. “This situation amplifies risks related to technological control and access to strategic information,” notes Ruiz. Along the same lines, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) warns of the risks posed by global supply chains, remote access, and centralized digital services linked to critical infrastructure, where digital resilience has become key to protecting essential operations and sensitive data.

Concerns extend beyond cybersecurity. Communications networks, surveillance platforms, cloud services, and data-management systems increasingly support law enforcement, border security, emergency response, and critical infrastructure protection. As these systems become more interconnected, questions of resilience and control become increasingly relevant to national security planning.

Industrial and programmatic dimension

Several Chinese companies are playing a central role in this expansion. A report by the Atlantic Council notes that companies such as Huawei, ZTE, and SenseTime have expanded their involvement in telecommunications, fiber-optic, video surveillance, and AI projects linked to government digitization.

In several Latin American countries, Chinese firms have grown in telecommunications, video surveillance, and smart city projects, integrating into the digital infrastructure that supports everyday services. The CFR also notes that Beijing has strongly promoted technological cooperation while discussions on digital governance and data protection have received far less attention.

Cooperation and regional expansion

These implications are already translating into concrete decisions. In Costa Rica, the government effectively excluded Huawei from participating in the development of 5G networks through cybersecurity regulations that restrict suppliers from countries that are not parties to the Budapest Convention on Cybercrime. Officials argued the measures were intended to reduce risks associated with state access to sensitive data and critical communications infrastructure. Panama, for its part, moved forward with replacing Huawei equipment installed at several strategic telecommunications sites, amid concerns about network security and technological dependence.

Both cases reflect a regional trend: scrutinizing the role of Chinese technology providers in infrastructure considered strategic for communications, national security, and data management.

For Latin America and the Caribbean, the debate is no longer simply about telecommunications equipment or foreign investment. It is increasingly about resilience, governance, and control over the digital systems that support public services, critical infrastructure, and national security.

The networks, data centers, cloud platforms, and surveillance systems being adopted today will help shape how governments manage information, respond to crises, and protect sensitive data in the future. As countries continue modernizing their digital infrastructure, decisions about supplier diversity, cybersecurity standards, and data governance will play an increasingly important role in preserving operational flexibility and reducing strategic vulnerabilities.

As Ruiz notes, “Strengthening national capabilities and diversifying technology suppliers will be key to reducing vulnerabilities and preserving greater margins of digital autonomy.” For governments across the region, the challenge is not whether to adopt foreign technology, but how to do so while preserving resilience, maintaining operational flexibility, and avoiding dependencies that could limit future choices. As Chinese companies continue expanding their presence in telecommunications, cloud services, AI, and digital infrastructure, those decisions are likely to play an increasingly important role in shaping the region’s digital future.

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