China is constructing a $3.5 billion deep water port in Peru’s Chancay, potentially inflaming U.S.-China relations.
The Wall Street Journal reports that this move aims to boost trade between Asia and South America and cater to the mega ships with their 60-foot depth. Cosco Shipping spearheads the project, emphasizing its strategic significance by involving Chinese President Xi Jinping in the upcoming inauguration. The port’s completion is 70% and will be featured in the Asia-Pacific Economic Cooperation (APEC) summit this November.
However, the U.S. views the endeavour as a power grab for regional resources, intensifying strategic competition in Latin America. Army General Laura Richardson expressed concerns about China’s expanding influence in the region, reflecting the tense diplomatic ties between the two superpowers.
This venture is also expected to expedite trade, cutting down transit times between Peru and China from 35 days, thereby reducing costs for perishable goods. Local farmers, like Daniel Bustamante, view the port as a gateway to Asian markets for their produce, which currently reaches predominantly European and American markets.
Additionally, the Peruvian government has contracted Jinzhao, a Chinese firm, to construct another port in southern Peru with an investment of $405 million. This project and the primary port will support major mining initiatives valued at approximately $15 billion.
As China strengthens its presence in South America through these projects and its Belt and Road Initiative, the geopolitical landscape is poised for significant shifts. Peru’s President Dina Boluarte is slated to meet Xi Jinping and discuss further collaborations, including potential partnerships with Chinese corporations like Huawei and BYD.
