Chinese President Xi Jinping recently inaugurated the first Chinese-funded port in South America, located in Chancay, Peru. This port, with an investment of US$3.5 billion, is a significant symbol of China’s increasing influence in the region. The inauguration took place virtually, with President Xi and Peruvian President Dina Boluarte overseeing the ceremony from Lima during the Asia-Pacific Economic Cooperation (APEC) summit.
The port in Chancay, situated about 50 miles north of Lima, is strategically positioned to serve as a vital hub for Chinese trade in the region. With the looming threat of potential tariff hikes under a new Donald Trump administration, this port is crucial for facilitating trade between China and South America.
President Boluarte emphasized the importance of China’s role in Peru’s economic growth, acknowledging the positive impact of Chinese investments. However, a US official cautioned Latin American countries to be cautious about Chinese investments, stressing the need to ensure that economic activities align with local laws and uphold human rights and environmental protections.
President Xi highlighted the port’s significance in promoting connectivity between South America and China, referring to it as a new gateway for trade between the two regions. The port is expected to benefit not only Peru but also neighboring countries like Chile, Colombia, and Ecuador, enabling them to bypass ports in Mexico and the United States when conducting trade with Asia.
Chancay port is part of China’s ambitious Belt and Road Initiative, a global infrastructure development strategy aimed at enhancing trade and strengthening Beijing’s political influence. This initiative includes a network of railways, highways, and other projects designed to facilitate economic cooperation and connectivity between regions.
Cosco Shipping Ports, a subsidiary of China’s COSCO Shipping Corporation, holds a majority stake in the port and has a 30-year concession to operate the terminal. The port’s strategic location and deep waters, with a maximum depth of 17.8 meters, make it capable of accommodating the world’s largest container ships.
Chancay, a town with a population of around 50,000, is poised to become a significant trade hub for importing Asian goods and exporting minerals like lithium and copper. President Xi emphasized the port’s smart and green features, highlighting its efficiency in reducing transit time and logistics costs between China and Peru.
As global leaders, including US President Joe Biden, gather for the APEC summit in Peru, the inauguration of the Chancay port underscores China’s expanding presence in Latin America. The port’s strategic importance in enhancing trade and connectivity between South America and China reflects the growing economic ties between the two regions.
