Planned link to Brazil raises geopolitical stakes for China-funded port in Peru

President Xi Jinping is expected to inaugurate Chancay port when he visits Peru next week. The Chinese-funded megaport may reshape Pacific trade, but has also made the United States uneasy. In the second of a two-part series, Igor Patrick looks at the implications for the whole of South American continent.

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Erik Bethel, a former US representative at the World Bank during Donald Trump’s presidency, was speaking at a conference in Miami in May when he surprised the audience by interrupting his analysis of security in the Western Hemisphere to issue a warning.

“Wait until the port of Chancay in Peru gets connected to Brazil. That’s going to be a wake-up call for all of us,” Bethel said. “If you’re not tracking that, just Google it. It’s a big deal.”

While US policymakers have previously highlighted the potential security risks from the China-funded Chancay mega port – General Laura Richardson, commander of the US Southern Command, has been voicing concerns for years – Bethel’s statement stood out. It was one of the first warnings to emphasise the economic ramifications of the new port not just for Peru or Brazil, but for the entire South American continent.

Constructed at an estimated cost of US$3.5 billion, the mega port is poised to become a pivotal logistics hub in the region and a crucial connection point between South America and the Indo-Pacific.

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Funded primarily through China’s Belt and Road Initiative, the project represents one of the most significant investments in Latin America under the Beijing trade-driven strategy.

With China strategically positioning this project as a potential triumph to offset recent belt and road setbacks in South America, the stakes are high. Chinese diplomats are actively promoting its prospects, and President Xi Jinping is expected to attend the port’s inauguration in November, underscoring its significance.

  

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