US, China clash over Peru’s Chancay megaport after court bars regulator oversight
The US and China are clashing over Peru's Chancay megaport following a court ruling that limits regulatory oversight, as Washington warns of sovereignty risks and Beijing issues a rebuttal.
Tensions between the United States and China have escalated over the Chancay megaport in Peru after a court ruling limited the Peruvian government's regulatory oversight of the facility, which is majority-owned by China's Cosco Shipping Ports. The US State Department has raised concerns that the ruling could lead to a loss of sovereignty for Peru, insinuating that the Chinese control over the port poses a potential threat to the country's autonomy. This has provoked a sharp rebuttal from Beijing, indicating that the Chinese government perceives this warning as an unwarranted meddling in Peru's internal affairs.
The Chancay megaport, valued at $1.3 billion and situated about 80 kilometers north of Lima, is a deep-water facility that spans 180 hectares and aims to handle up to one million containers annually. The strategic location of the port on South America’s Pacific coast makes it an important asset in global supply chains, and it has become a focal point in the broader geopolitical competition between the US and China. Washington's intervention highlights its ongoing concerns regarding China’s expanding influence in Latin America.
The confrontation over the Chancay port reflects deepening geopolitical rivalries and poses significant implications for Peru, which must navigate its relationships with these two superpowers. The tensions also underscore the potential for increasing instability that could arise from foreign investments in critical infrastructure, as nations assess the balance between economic benefits and national security concerns in an increasingly multipolar world.