Argentina’s new 25‑year Parana River deepening contract has become a flashpoint in US‑China rivalry. President Javier Milei’s administration awarded the $10 billion project to Belgium’s Jan de Nul NV, a dredger linked to China‑backed Servimagnus SA. The move follows a long‑running list of US‑backed bidders, notably DEME Group NV.

The contract’s value dwarfs the typical regional infrastructure spend and signals Milei’s willingness to sidestep his own anti‑state‑owned‑enterprise stance by opening the river to a Chinese‑affiliated vendor. Analysts note the decision could trigger legal challenges, as DEME’s US partner Great Lakes Dredge & Dock Corp. weighs options.

Washington’s push to limit Chinese influence in critical assets resurfaces after Panama rescinded a Chinese port contract. The National Security Strategy frames such infrastructure as strategic assets that must be free from external control. Milei’s concession may strain his alliance with Trump, who warned of China’s expanding footprint.

The Parana deal underscores how infrastructure financing now carries geopolitical weight. Investors eye the tender’s outcome to gauge US influence in Latin America and the potential for Chinese expansion. The contract’s finalization will set a precedent for future projects where strategic control and national interests collide.