The United States has warned that Peru risks compromising its sovereignty through Chinese ownership of the Chancay port, intensifying focus on Beijing’s economic influence in Latin America. The U.S. State Department’s Bureau of Western Hemisphere Affairs expressed concern that the facility, controlled by China’s Cosco Shipping, represents “predatory Chinese” investment, echoing a broader Trump administration strategy to counter Chinese presence in the Western Hemisphere.
Chancay, Peru’s fourth-largest port, is operated by Cosco’s local subsidiary following a $1.3 billion acquisition of a 60% stake in 2019. The port operates as a private facility for public use rather than a state concession. The warning followed a Peruvian court decision temporarily restricting the state regulator Ositran from supervising the port after Cosco filed a constitutional complaint. The firm argued Ositran overstepped by applying concession-specific fees, and a judge ruled in its favour. Cosco stated the ruling “in no way involves aspects of sovereignty.”
The U.S. assertion aligns with its National Security Strategy, which seeks to prevent non-Western competitors from controlling critical infrastructure in the Americas. For over a decade, China has been Peru’s top trading partner, and its loans and investments have expanded across the region. Critics note the U.S. has concurrently applied economic and military pressure, such as sanctions on Venezuela that restrict its oil trade with Chinese and Russian firms, while advocating for regional sovereignty.
This incident reflects recurring friction. Last year, former President Donald Trumpclaimed China “operated” the Panama Canal and threatened to “take it back,” although Chinese firm CK Hutchison only held port concessions at canal entrances. Under U.S. pressure, the firm agreed to sell its stake to an American consortium, though Panama’s Supreme Court later annulled the concessions.
Beijing rejected the U.S. allegations as “false accusation and disinformation,” maintaining its investments adhere to market principles and mutual benefit. The Chancay dispute underscores the growing geopolitical contest over infrastructure and trade routes in Latin America, where nations balance commercial ties with China against U.S. warnings about strategic dependency. Observers note that as Chinese capital flows into ports and energy projects, debates over national sovereignty and foreign control are likely to intensify, with significant implications for regional autonomy and hemispheric relations.
