U.S. Expresses Concerns Over Chancay Port
The U.S. government has raised concerns that China's increasing control over Peru's critical infrastructure could impact the South American nation's sovereignty. This statement followed a Peruvian court ruling that limited a local regulator's oversight of the Chinese-built Chancay mega port.
Key Details of the Port
The $1.3 billion deepwater port in Chancay, located north of Lima, is seen as a significant Chinese investment in Latin America. It forms part of China's Belt and Road initiative, a global infrastructure program. As Latin America's deepest port, Chancay can accommodate large cargo ships for trade between Asia and South America. China has been Peru's largest trading partner for over a decade.
U.S. and Chinese Statements
The U.S. State Department's Bureau of Western Hemisphere Affairs stated via social media that it was "concerned about latest reports that Peru could be powerless to oversee Chancay."
The bureau emphasized support for Peru's sovereign right to oversee its critical infrastructure and warned other nations about potential sovereignty costs associated with Chinese investment.
This concern from the U.S. comes as it aims to strengthen its influence in the Western Hemisphere, a region where China has expanded its presence through extensive loans and trade.
Cosco, the Chinese state-owned shipping company and majority shareholder in the port, rejected the U.S. assertions.
Cosco stated to The Associated Press that the court ruling does not impact sovereignty and affirmed that the port operates under Peruvian jurisdiction, sovereignty, and regulations.
They also noted the presence of various Peruvian authorities monitoring port activities.
Court Ruling and Regulatory Oversight
A lower court ruling on January 29 instructed Peruvian authorities to refrain from regulating, supervising, overseeing, or sanctioning the Chancay port. Ositran, Peru's national port regulator, plans to appeal this decision, arguing that Cosco Shipping should not be exempt from its oversight.
Ositran President Verónica Zambrano stated that this ruling would make Cosco Shipping the only public service provider in Peru without supervision.
She added that despite private ownership, the Chancay Port occupies 180 hectares of Peruvian territory, necessitating government monitoring and enforcement of user protection standards.
Peru's Foreign Ministry and China's Embassy in Peru declined to comment on the matter.