China is poised to strengthen its role in South American trade with the launch of the new Chancay port in Peru, which Chinese President Xi Jinping is expected to inaugurate next week. This major Chinese-funded infrastructure project, built by China’s state-owned COSCO Shipping, aims to streamline trade routes between South America and Asia.
Once fully operational, the port is expected to establish a direct trade corridor to Chinese ports, creating faster access for Peruvian and Brazilian exports.
#Peru‘s #Chancay Port, South America-Asia ‘nerve center’, to open #APEC2024 https://t.co/DSetjoe0i8 pic.twitter.com/Dzs4DecG02
— CGTN (@CGTNOfficial) November 11, 2024
Chancay reflects China’s growing influence in Latin America. Since surpassing the United States as Peru’s top trading partner in 2015, China has increased its investment in Peru’s copper and lithium industries and has widened its trade lead in the region. According to U.N. data, Chinese trade with Peru outpaced U.S. trade by $16.3 billion last year.
China’s deepening economic ties with South America have raised concerns in the United States, where officials view the growing Chinese presence in Latin America as a challenge to regional security.
While the United States has voiced concerns about China’s intentions in the region, Peruvian officials say they welcome investments from multiple international partners.
Mario de las Casas, a spokesperson for COSCO Shipping, emphasized that Peru’s decision to work with China on the Chancay project is focused on economic opportunity rather than politics. The port is part of Peru’s broader plan to position itself as a trade hub, with officials envisioning Chancay as a key link in the Pacific trade network similar to Singapore in Asia.
