Michael Cunningham
When U.S. officials are asked about China, the discussion usually defaults to Taiwan or tariffs. But another threat from Beijing has been growing for years, and it can be found much closer to home—in Latin America. Case in point: the deep-sea mega-port that just opened in Chancay, Peru.
A port opening hardly looks like something that should worry the United States. But this port is 60 percent-owned by the Chinese state-owned giant COSCO Shipping, which has exclusive operating rights.
Chancay Port is a huge win for Beijing. It’s expected to slash roughly 10 days off the time it takes to ship goods between China and South America, making it easier and more cost-effective for Beijing to exploit the continent’s resources and flood the region with its exports, from solar panels to electric vehicles. These benefits will further multiply after a planned rail link connects Chancay to Brazil, China’s biggest South American trading partner.
Peru’s government hopes the new port will enable it to capitalize on China’s increasing trade with the region and become, in the words of one Peruvian official, “the Singapore of Latin America.”
Argentina’s “Milei Miracle” Is Exposing Its Failing Socialist Neighbors
However, this gamble carries risks. Some in Peru fear their government gave China too much leverage. It’s unclear how COSCO managed to get exclusive operating rights in violation of Peru’s National Port System Law. Earlier this year, the law was amended to legalize the arrangement after Lima’s attempts to annul the exclusivity clause resulted in COSCO threatening to pull out of the nearly-completed project.
This isn’t good for Peru or for the United States, which is hemorrhaging influence in its own backyard. But it’s not like Washington gave Lima a better alternative. Peruvian officials reportedly spent years trying to procure financing for Chancay Port before a consortium of Chinese banks agreed to help in 2019. » Read More
https://www.heritage.org/china/commentary/wakeup-call-the-us-risks-losing-latin-america-china