China’s plan to build a radio telescope at the Félix Aguilar Astronomical Observatory in Argentina has been halted by President Javier Milei's government, coinciding with a major US financial bailout.

The Trump administration raised concerns about potential military use, a claim strongly denied by the University of San Juan, which emphasizes the telescope lacks radar capabilities and is designed for deep-space observation, not surveillance.

Despite geopolitical tensions, trade between Argentina and China is booming, with Chinese exports up 66% and electric vehicle brands like BYD gaining traction under Milei’s zero-tariff policy. Experts warn Argentina must balance its foreign policy to protect national interests while navigating US-China rivalry, as Beijing has already invested $24 million in the suspended project.