The United States is warning Peru that China’s growing control over a major Pacific port could threaten the country’s sovereignty, escalating tensions over Beijing’s growing footprint in Latin America.
Concerns center on the $1.3 billion deepwater port in Chancay, north of Lima, which has become a flashpoint between Washington and Beijing after a Peruvian court ruled that government oversight of the project was limited.
The State Department’s Bureau of Western Hemisphere Affairs said on social media that it was “concerned by latest reports that Peru may be powerless to monitor Chancay, one of its largest ports, which is under the jurisdiction of predatory Chinese owners.”
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A drone shot shows cranes and containers at the new megaport being built by Chinese state-owned company Cosco Shipping, promising to shorten sea routes to Asia for Peruvian and some Brazilian goods, in Chancay, Peru, October 24, 2024. (Angela Ponce/Reuters)
China’s Foreign Ministry dismissed the comments as “rumormongering and slander” and stressed that the project remains under Peruvian authority, the Associate Press report said.
“In times of war, China will not allow its port operations to load, unload or serve American ships or ships coming to or from American ports,” he warned.
Jack Burnham, senior analyst with the China program at the Foundation for Defense of Democracies, said the port reflects a broader strategic push by Beijing in the region.
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Workers stand next to cranes at the new megaport being built by Chinese state-owned company Cosco Shipping, promising to shorten sea routes to Asia for Peruvian and some Brazilian goods in Chancay, Peru. October 24, 2024. (Angela Ponce/Reuters)
“The Port of Chancay is a cornerstone of Chinese investment in Latin America – its size and proximity provide a bridge across the Pacific and access to another market to fuel Beijing’s export-driven economic engine,” Burnham said.
“China’s investment in Peru is predicated on Beijing using the power of Lima’s critical infrastructure to gain influence. With effective control over the port provisionally strengthened by a lower Peruvian court ruling, China gains access to one of the largest critical infrastructure projects in the region, a position from which it could exercise significant control.”
The dispute comes as Washington and Beijing compete for influence across Latin America, where China has expanded investment through infrastructure projects and trade, analysts say.
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Fishing boats anchor in the bay and near the new mega port being built by Chinese state-owned company Cosco Shipping, promising to shorten sea routes to Asia for Peruvian and some Brazilian goods, in Chancay, Peru, October 24, 2024. (Angela Ponce/Reuters)
Chinese state-owned shipping giant COSCO, which has a majority stake in the project, dismissed U.S. concerns, saying the court ruling “does not involve any aspects of sovereignty in any way,” adding that Peruvian authorities still oversee safety, environmental compliance and customs, according to the Associated Press.
Peru’s transport infrastructure regulator Ositran has said it plans to appeal the ruling, arguing that the port should not be exempt from the same oversight as other major facilities.
The Chinese embassy in Washington DC did not comment in time for publication.
The Associated Press contributed to this report.
