Navigating US-China technology competition among Middle Powers: study of Chilean response

Abstract

Amid intensifying US–China rivalry over digital governance, middle powers like Chile face growing pressure to navigate an increasingly fragmented global order. This article examines Chile’s response through expert interviews and analysis of three key technology cases involving Chinese firms. The findings show that Chile has adopted a Hedging Strategy, limiting involvement in sensitive tech projects aligned with US security concerns, while continuing to attract Chinese investment in areas like electromobility and renewables. The study underscores the combined impact of geopolitical tensions, domestic bureaucratic constraints, and the challenges of engaging with China, whose growing presence still requires a process of mutual adaptation. These dynamics raise questions about Chile’s priorities and the limits of its autonomy in this complex context.