Chile, long regarded as one of Latin America’s most stable democracies, is entering a period of increasing geopolitical significance. At the center of this transformation are two converging forces: the rising political activism of its large Palestinian diaspora and the deepening economic entanglement with the People’s Republic of China. As Santiago tilts toward foreign influences that may be hostile to U.S. and Israeli interests, urgent strategic recalibration is required in Washington, Tel Aviv, and Buenos Aires.
The Power of Diaspora: Palestinian Political Reach in Chile
Chile is home to the largest Palestinian community outside the Middle East, numbering approximately 500,000. This community, well-integrated into Chilean society for over a century, has become an influential force in domestic politics. High-profile politicians such as Daniel Jadue (former presidential candidate), Francisco Chahuán (Senator), and Fuad Chahín (former party leader) exemplify the community’s political clout.
Recent foreign policy shifts reflect this influence. In 2023, President Gabriel Boric recalled Chile’s ambassador to Israel, criticizing Israeli military operations in Gaza. Boric’s administration has also announced plans to open an embassy in the Palestinian territories, an unprecedented move in the Americas.
While these actions are framed as expressions of Chilean sovereignty and human rights advocacy, they also align with positions that isolate Israel diplomatically and indirectly support the BDS (Boycott, Divestment, Sanctions) movement. The U.S. State Department has consistently opposed BDS, warning that it “delegitimizes Israel and pushes for unfair double standards.”
Israeli officials have voiced their concern about this trend. A senior Israeli diplomat speaking on condition of anonymity stated, “Chile’s recent moves signal a concerning shift that emboldens extremist narratives under the guise of solidarity.”
Beijing’s Footprint: Strategic Economic Influence
Concurrently, China has become Chile’s largest trading partner, with bilateral trade exceeding $65 billion annually. Through the Belt and Road Initiative (BRI), Beijing has invested in Chilean copper, lithium, ports, solar farms, and telecommunications infrastructure.
This expansion is not merely economic. U.S. Southern Command Commander General Laura Richardson has repeatedly warned about China’s dual-use infrastructure projects across the hemisphere:
“The PRC has expanded its ability to extract resources, establish ports, manipulate governments through predatory investment practices, and build potential dual-use space facilities.”
Chinese state-backed entities are funding Confucius Institutes, sponsoring media collaborations, and influencing local political narratives. These activities are not benign. They serve the long-term goal of eroding U.S. influence in Latin America and reshaping regional alliances.
The Regional Risk: Argentina, the U.S., and Israel
For Argentina, under President Javier Milei—a staunch ally of the U.S. and Israel—Chile’s strategic drift could complicate bilateral security coordination. Milei’s libertarian administration has aligned itself with Western democracies, and any ideological pivot in Santiago could open a flank to anti-Western sentiment in the Southern Cone.
For Washington, Chile’s openness to Chinese capital and Palestinian-aligned activism represents a two-front challenge: economic encroachment and ideological divergence. As the U.S. competes with China for influence in the Western Hemisphere, ignoring Chile’s internal political evolution would be a strategic misstep.
For Israel, the danger is diplomatic isolation and the normalization of anti-Zionist rhetoric in a region where it previously enjoyed strong ties.
Recommendations: A Call for Strategic Realignment
To counter these developments, policymakers must consider:
- Enhanced Diplomatic Outreach: The U.S. and Israel should deepen engagement with Chilean civil society and moderate political actors to rebuild trust and counter misinformation.
- Strategic Investment Alternatives: Offer infrastructure and energy investment packages as alternatives to Chinese-backed projects that come with political strings attached.
- Public Diplomacy Campaigns: Promote cultural and educational exchange programs that emphasize democratic values and historical U.S.-Chile and Israel-Chile partnerships.
- Multilateral Engagement: Work through regional organizations like the Organization of American States (OAS) to build consensus around the risks of authoritarian influence and extremism.
Chile is not lost. But it is in play.
A passive response to the shifting dynamics in Santiago would risk forfeiting a key ally and allowing authoritarian and radical actors to reshape South America’s strategic architecture. Washington and Jerusalem must act decisively to ensure that Chile remains a partner anchored in shared values—not a pawn on someone else’s chessboard.
