China’s $1.3 billion investment in Peru’s Chancay Port has raised U.S. concerns over potential military and intelligence use by Beijing. The port, inaugurated by President Xi Jinping, is central to China’s efforts to expand trade and influence in Latin America.
Xi highlighted the Chancay Port as a gateway for a “21st-century maritime Silk Road,” part of the Belt and Road Initiative. The port is expected to generate $4.5 billion annually, create thousands of jobs, and lower Peru-China logistics costs by 20%.
Chancay’s strategic location connects Peru to Brazil via a planned $3.5 billion railway, enabling efficient export of soybeans and iron ore to China. The port aims to streamline shipping between Asia and South America, reducing costs and transit times.
Beijing’s growing presence in Latin America, including Chancay, reflects its broader strategy to secure resources and trade routes amid global tensions. U.S. officials remain wary of potential Chinese military ambitions tied to such infrastructure projects.
Chinese media dismissed U.S. accusations, labeling them geopolitical smears. Despite the controversies, Chancay symbolizes China’s deepening economic ties in the resource-rich region, challenging traditional U.S. influence.