South Atlantic Stakes: U.S. Counters China at Argentina’s Ushuaia Naval Hub

(Analysis) The U.S. Southern Command Chief, Admiral Alvin Holsey, visited Argentina in late April 2025 to strengthen defense ties and review the Integrated Naval Base project in Ushuaia.

This visit, confirmed by official sources, highlights the growing competition between the United States and China for influence in southern South America and access to Antarctica.

Argentina has invested $8.3 million in the Ushuaia base so far, with total costs projected at $300 million. The base, started in 2022, will expand Argentina’s logistical and military presence in the South Atlantic and serve as a supply hub for Antarctic missions.

The project includes new port facilities, staff housing, and infrastructure improvements. The government plans to fund the works through the Public Works Ministry and the National Fund for Defense.

Argentina’s move responds to both commercial and strategic pressures. Ushuaia’s location, just 1,000 kilometers from Antarctica, gives it a logistical edge over Chile’s Punta Arenas and other southern ports.

The base aims to attract shipping, tourism, and supply contracts for Antarctic expeditions, sectors currently dominated by Chile. Argentine officials see this as a way to catch up with Chile’s more advanced Antarctic logistics industry.

Strategic Tensions in Ushuaia

The U.S. views the Ushuaia project as a counter to Chinese expansion in the region. China already operates four Antarctic bases and is building a fifth. Both China and Russia have shown interest in funding or participating in the Ushuaia base.

The U.S. Southern Command, not the commercial sector, brokered the current agreement with Argentina, signaling a focus on security and strategic control rather than trade alone.

U.S. officials worry about Chinese financing and possible operational control in a region they consider vital for maritime trade and resource access.

The U.S. has a long-standing policy of discouraging outside powers from gaining a foothold in Latin America, especially near sensitive trade routes like the Drake Passage and the Panama Canal.

Argentina’s current government, led by President Javier Milei, has shifted away from previous overtures to China. It now seeks closer alignment with the U.S.

This realignment has caused friction with some Argentine lawmakers and local officials, who fear foreign military presence could undermine national sovereignty or benefit rival interests, including the United Kingdom, which disputes the nearby Falkland Islands.

The rivalry over Ushuaia’s base reflects broader tensions as the U.S. and China compete for influence and trade in Latin America. Both powers seek to secure supply chains, control logistics, and shape future access to Antarctic resources.

Argentina’s investment in Ushuaia marks a significant step in this contest, with the outcome likely to affect regional trade flows and the balance of power in the South Atlantic for years to come. All details and figures in this report are based on official statements and public records.