The US has warned that Peru risks losing its sovereignty due to Chinese ownership of a major port, following restrictions placed on the local regulator overseeing it.
The US State Department has issued a warning regarding Peru's potential loss of sovereignty over the Chancay port, which is owned by a subsidiary of China's Cosco shipping company. This warning follows a decision by a Peruvian court that temporarily restricts the state regulator, Ositran, from supervising the port's operations. The US claims that such foreign ownership can lead to predatory practices, suggesting that China's financial involvement in the region jeopardizes national sovereignty.
The Chancay port is significant as it stands as Peru's fourth-largest port, strategically positioned to enhance China's influence in South America through trade and infrastructure investment. The port was purchased in 2019 for $1.3 billion, with Cosco obtaining a 60% stake. The US has been vocal about its concerns regarding China's expanding presence in Latin America and is attempting to reassert its influence in a region that has seen increased Chinese economic investments over the years.
In response to the US claims, Beijing has strongly denied the allegations, describing them as false accusations and a form of disinformation. This ongoing dispute highlights the tensions between the US and China, as both nations vie for influence in Latin America, particularly regarding critical infrastructure projects that can have far-reaching implications for sovereignty and regional stability.
