BUENOS AIRES, Argentina (AP) — China and the United States are clashing diplomatically in Argentina as President Javier Milei seeks to preserve his close alliance with Washington while pursuing deeper economic ties with Beijing.

China’s embassy in Buenos Aires accused the United States of hypocrisy on Thursday after an electricity cooperative in Argentina’s Neuquén province said the U.S. Embassy threatened to revoke its executives’ visas over an agreement with Chinese telecommunications giant Huawei.

“These actions fully reflect the arrogance and prejudice of the United States. They constitute a serious lack of respect for the sovereignty of other countries and a serious infringement of the principles of the free market,” the embassy said in a statement.

It added that the United States should “correct its perception of China and put an end to its hegemonic practices and political maneuvering.”

The diplomatic clash comes as Milei walks a careful diplomatic line, remaining one of U.S. President Donald Trump’s closest allies in the region while deepening commercial ties with China, one of Argentina’s top trading partners.

On Wednesday, Argentina renewed its bilateral currency swap agreement with China for another five years, reinforcing financial cooperation between the two countries. Foreign Minister Pablo Quirno is also expected to visit China in the coming months to strengthen economic and commercial ties. Quirno’s office declined to comment.

China’s statement came days after CALF, the largest electricity distributor in southern Argentina, alleged that its executives had been threatened with the revocation of their U.S. visas for negotiating with Chinese technology giant Huawei. The cooperative said in a statement that an executive received messages through WhatsApp warning that U.S. visa restrictions could apply to those involved in expanding Huawei’s operations in Argentina.

In July, CALF announced it was expanding its partnership with Huawei to develop its first fiber-optic network and support other modernization projects.

U.S. Ambassador to Argentina, Peter Lamelas, did not respond to a request to comment but wrote on social platform X: “Deciding who may enter the country and who may not is the responsibility of every sovereign nation. Denying or revoking a visa is not a punishment; it is a decision made to protect the country’s security and interests.”

CALF said on Thursday that Lamelas had sent the cooperative a letter requesting a meeting and offering assistance in evaluating technological alternatives from U.S. companies. According to CALF, the ambassador also confirmed that the messages sent to one of its managers via WhatsApp reflected official U.S. policy.

The Argentine Federation of Electricity and Public Services Cooperatives (FACE), which represents electricity and public service cooperatives across the country, said on Thursday that its members “do not respond to corporate interests or geopolitical strategies” and that any disputes should be resolved through “institutional, transparent and respectful dialogue.”

FACE added that it would formally request a meeting with Lamelas.

Milei’s balancing act

The Trump administration has stepped up efforts to counter China’s growing influence in Latin America, increasingly invoking what officials describe as a modern-day version of the Monroe Doctrine — the 1823 policy warning European powers against interference in the Western Hemisphere.

The U.S. has revoked the visas of three senior Chilean officials and threatened to reassert U.S. control over the Panama Canal in the ongoing geopolitical dispute.

Milei has become one of Trump’s closest allies in the region and, during his presidential campaign, referred to China’s Communist government as “assassins.”

Washington has backed his administration with political and financial support, including a $20 billion financial package to boost Milei’s electoral prospects and halt the peso’s precipitous slide. Yet nearly three years into his presidency, Chinese goods have flooded Argentine markets and economic ties with Beijing have continued to deepen.

E-commerce platforms such as Shein, Temu and AliExpress have become some of the most popular shopping apps in Argentina, more than 20 Chinese automakers now sell over 60 models in the country, and China’s Ganfeng Lithium has poured billions of dollars into lithium deposits in the country’s north.

“In some ways, Trump has given Argentina breathing room,” Benjamin Gedan, senior fellow and director of the Latin America Program at the Stimson Center, told The Associated Press. “But deals with Huawei are often a red line for the United States” because they tend to involve sensitive infrastructure and strategic assets, he added.

Clara Preve, The Associated Press