China’s influence in Latin America grows as a new mega-port opens in Peru. Chancay Port, a $3 billion investment, creates a direct route across the Pacific Ocean.
This project highlights China’s growing reach in a region traditionally associated with the United States. The port boasts automated cranes from Shanghai Zhenhua Heavy Industries.
The investigation by the US Congress qualifies this company as a security risk for US ports. Driverless electric trucks from Chinese firms will handle containers and cargo in Chancay.
China’s involvement in Chancay has raised US concerns about possible military use. Laura J. Richardson, former head of the US Southern Command, suggested that Chinese warships could use Peru as a base in the Americas.
Beijing denies any military motive. Ryan Berg, an American expert at think tanks, notes that China appreciates the option to use the port, even if not immediately.
Peruvian and Chinese officials celebrate the project as a game changer for Peru’s trade with its largest partner. President Dina Boluarte calls Chancay a potential “nerve center” connecting South America and Asia.
A geopolitical and economic milestone in Peru
The port promises 8,000 jobs and $4.5 billion in annual economic activity. It underscores the strengthening of Latin American ties with China.
Chinese interests in the region now extend beyond mining to ground stations and satellite technology. US concerns about military use have not resonated in Peru, which welcomes the promise of investment.
When completed, Chancay’s 15 docks will be the first South American port for very large vessels for the Panama Canal. Chinese researchers claim the road will cut transport times by 10 to 20 days.
The port could attract Chinese companies looking for new export markets or manufacturing sites in America. Boluarte cited Chancay as a reason for Chinese electric car giant BYD to consider an assembly plant in Peru.
Chancay’s acquisition from China was met with some controversy in Peru. A dispute over Cosco’s 30-year exclusive operating rights was settled before Boluarte’s visit to China. Chancay joins China’s global network of over 40 ports under the Belt and Road Initiative.
Despite claims of purely commercial activities, Chinese foreign policy experts see Chancay as a geopolitical victory. They warn of inevitable US efforts to weaken Chinese control once the project is completed.
Xi and Boluarte are expected to sign an expanded free trade agreement. China has been Peru’s largest trading partner for a decade, with $36 billion in goods exchanged last year.
For Beijing, the port connects existing investments in Peru and neighboring countries. China intends to build a railway connecting Chancay with Brazil, Latin America’s largest trading partner. Chinese firms are also taking over electricity distribution for Lima.
Chinese investment in Peru’s mining sector totals $11.4 billion, focused primarily on copper access. As the world’s copper refining hub, China will use Chancay to improve access to South America’s second-largest producer of crude copper.
