A $3.5 billion deep-water port in Chancay, Peru, primarily owned by China’s state-owned Cosco Shipping and part of China’s Belt and Road Initiative, is expected to be completed by the end of 2024. The port will facilitate direct shipping routes between South America and Asia, significantly reducing transit times for commodities like soy, corn and copper to China.
The U.S. is worried the port’s ability to handle megaships directly between Peru and China could shift trade dynamics, making it easier for China to extract and control South American resources. The U.S. is also concerned about China’s growing economic leverage in the region.
There are also fears the port could be used for military purposes. General Laura Richardson of the U.S. Southern Command has highlighted concerns about the dual-use nature of such infrastructure, where commercial ports could potentially serve military functions. This includes worries about data security and the control over cargo scanning and logistics.
The Chancay port is expected to transform Peru into a strategic commercial hub, facilitating the export of commodities not only from Peru but also from other South American countries like Brazil. This development is seen as a significant step in China’s strategy to deepen its economic ties with Latin America, which has become a new battleground for resources among global powers.
Peruvian officials have downplayed U.S. concerns, suggesting that if the U.S. is worried about China’s growing presence, it should increase its own investments in the region. This stance reflects a broader trend in Latin America, where countries are increasingly looking to China for financing and development projects due to a significant gap in infrastructure funding.
