U.S. Warns Peru Over Sovereignty Risks Amid China’s Control of Chancay Port
LIMA, Peru — The United States government has issued a stark warning to Peru regarding the growing influence of China over the strategically important Chancay port, a $1.3 billion deep-water facility north of Lima. U.S. officials caution that China’s tightening grip on the port could undermine Peru’s sovereignty and hamper its ability to regulate critical infrastructure within its own borders.
The State Department’s Bureau of Western Hemisphere Affairs expressed concern over a recent Peruvian court ruling that curtailed government oversight of the port project, which is under the control of Chinese entities. In a statement posted on social media, the bureau emphasized support for Peru’s sovereign rights, stating, “We support Peru’s sovereign right to oversee critical infrastructure in its own territory. Let this be a cautionary tale for the region and the world: cheap Chinese money costs sovereignty.”
Chancay port, designed to be one of Peru’s largest maritime gateways, is a linchpin in Beijing’s broader strategy to expand its footprint in Latin America. The port’s development aligns with China’s Belt and Road Initiative, which has seen the country invest heavily in infrastructure projects across the globe. However, U.S. officials and lawmakers have raised alarms about the potential military and geopolitical implications of such investments. The U.S.-China Economic and Security Review Commission has previously warned that Chinese-funded infrastructure, especially in strategic locations like ports, could facilitate future military access and undermine regional security.
Relations between Washington and Beijing have become increasingly fraught, with Latin America emerging as a critical arena for influence. The U.S. government views China’s expanding presence in the region as a challenge to democratic governance and economic independence. The warning to Peru underscores these tensions, highlighting concerns that Beijing’s investments come with strings attached that may compromise national autonomy.
Peru finds itself at a crossroads, balancing the economic benefits of Chinese capital against the risks posed by diminished regulatory control. The port’s Chinese operators reportedly enjoy protections that limit the Peruvian government’s ability to intervene, a situation that has drawn criticism from U.S. officials and regional observers alike. The Bureau of Western Hemisphere Affairs has been vocal in advocating for stronger oversight mechanisms to safeguard sovereignty.
Experts note that the Chancay port controversy is emblematic of a broader pattern in which Chinese investments in Latin America come with geopolitical strings. The U.S. government has been actively promoting alternative investment frameworks to counterbalance Beijing’s influence, emphasizing transparency and respect for national governance.
As the dispute unfolds, it adds to a growing list of flashpoints where U.S. and Chinese interests collide. The Biden administration has reinforced its commitment to supporting allies and partners in the Western Hemisphere, ensuring that infrastructure projects do not compromise security or democratic values. The U.S. Department of State continues to engage with Latin American nations to promote sustainable development and protect sovereignty.
With the Chancay port at the center of this geopolitical tug-of-war, Peru’s decisions in the coming months will be closely watched by Washington, Beijing, and regional governments. The outcome may well influence the future trajectory of Chinese investment and U.S. engagement across Latin America, shaping the balance of power in a region long considered within America’s sphere of influence.
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