China has opened a major deep-water port in Chancay, Peru, marking a significant expansion of its influence in Latin America. The $3.5 billion project, developed by China’s state-owned COSCO Shipping, is poised to become a pivotal hub for trade between South America and Asia, with the capacity to handle some of the world’s largest container ships.
The Chancay port, located just 80 kilometres north of Lima, is expected to slash shipping times for key commodities such as copper and soybeans by up to ten days. This development is a cornerstone of China’s Belt and Road Initiative, aiming to enhance global trade connectivity and solidify Beijing’s economic partnerships in the region.
While Peru anticipates substantial economic benefits, including job creation and improved infrastructure, the port’s inauguration has sparked unease in Washington. U.S. officials, including General Laura Richardson, have expressed concerns that the port could serve dual purposes, potentially accommodating Chinese naval vessels. “This is part of a broader playbook we’ve seen elsewhere,” Richardson noted, highlighting the strategic implications of China’s growing footprint.
The port’s unveiling coincided with the Asia-Pacific Economic Cooperation (APEC) summit in Lima, where Chinese President Xi Jinping met with U.S. President Joe Biden. The two leaders emphasised the importance of maintaining cooperative ties, but the port underscores rising competition between the two global powers in Latin America.
As China cements its presence in the region, the Chancay port is a stark reminder of the shifting geopolitical dynamics reshaping South America’s economic and strategic landscape.
