US warns Peru risks losing sovereignty to growing Chinese influence
Washington raises alarm after court curbs regulator’s oversight of Chancay port Beijing backed firm rejects concerns.
US, Feb 12 : The United States has warned that Peru could risk compromising its sovereignty amid growing Chinese control over key infrastructure, following a court decision that limited regulatory oversight of the Chinese built Chancay deepwater port.
Valued at $1.3 billion and located north of Lima, the Chancay port has emerged as a strategic gateway on South America’s Pacific coast and a focal point in the geopolitical rivalry between Washington and Beijing. The facility forms part of China’s Belt and Road initiative, which finances major infrastructure projects worldwide.
The US State Department’s Bureau of Western Hemisphere Affairs said it was concerned by reports suggesting Peru may be unable to supervise one of its largest ports. Calling the development a “cautionary tale,” the bureau warned that reliance on “cheap Chinese money” could come at the cost of national sovereignty while reaffirming support for Peru’s right to control critical infrastructure.
The warning comes as the Trump administration intensifies efforts to counter China’s expanding economic footprint across Latin America, where Beijing has built strong trade ties and extended significant loans for development projects.
China’s state-owned shipping giant Cosco, the majority stakeholder in the port, dismissed the US claims, asserting that the court ruling does not affect Peru’s sovereignty. The company maintained that the port remains under Peruvian jurisdiction and is monitored by multiple authorities, including customs, environmental agencies, and law enforcement.
However, the regulator Ositran responsible for supervising the country’s major ports—plans to appeal the January 29 ruling. Its president, Veronica Zambrano, argued that exempting Cosco from oversight would make it the only public service provider in Peru not subject to regulatory scrutiny.
Spanning nearly 180 hectares, the Chancay facility is Latin America’s deepest port and capable of accommodating some of the world’s largest cargo vessels operating between Asia and South America. China has also remained Peru’s largest trading partner for over a decade, underscoring the economic stakes tied to the project.
