The opening up of the Chancay Port in Peru and its role in the Chinese Maritime Silk Road

Xi Jinping's visit to Peru in Latin America to inaugurate the new Chinese port project in Chansai, north of Lima, Peru, coincided with the visit of outgoing US President Joe Biden as part of the APEC summit.

Chinese President Xi Jinping’s visit to Peru in Latin America to inaugurate the new Chinese port project in Chansai, north of Lima, Peru, coincided with the visit of outgoing US President Joe Biden as part of the APEC summit. This Chinese port in Peru is the first Chinese-funded port in South America, at a Chinese cost estimated at $3.5 billion. Its location and design were strategically chosen by the Chinese in Chansai, north of Lima, to be a regional trade center to serve China’s projects and link them to Latin America and around the world. The most prominent benefit of this port for the Chinese is that it allows South American countries to bypass ports in Mexico and the United States when dealing commercially with Asian countries.  The opening of the new (Chancai Port) by the Chinese in Peru will greatly contribute to strengthening Peru’s position as a gateway linking land and sea, as well as between Asia and Latin America, with the importance of the “New Chinese Chancai Port” as the first smart port and green port in South America, which upon completion will also generate huge revenues and create a large number of job opportunities for the Peruvian people. It is also expected that in the coming period, China will build a new land-sea corridor in Peru specifically, to directly link China to all Latin American countries, and consider the “Chancai Port in Peru” as its starting point. The Chinese assurances also came that this corridor, which will link the (Inca Path with the Chinese Maritime Silk Road) for the 21st century, will open a path of shared prosperity and shared happiness for Peru and its partners in the Latin region and all other countries in Latin America and the Caribbean region. This Chinese move can be analyzed as a new Chinese attempt to undermine American influence through Washington’s backyard, specifically in Latin and South American countries, as the United States of America considers various Latin American countries to be within its direct circle of interest, and always warns of the increasing Chinese competition around the world, especially in Latin America, especially in the economic aspect by China.

  As for China’s goal of penetrating the Latin American region and opening the new port in Peru, it comes as a Chinese attempt to link Peru and various Latin American countries to its initiative and projects for the Belt and Road, through China’s planning to create a new land-sea corridor that links Asia and Latin American countries, during the opening of the Chinese side of the huge “Shankai” port and harbor that China is financing near Lima in Peru in Latin America, and the integration of this new Chinese port into the Silk Road Initiative, in addition to helping Latin American countries link them to the Chinese Belt and Road Initiative by building infrastructure and developing navigation networks, roads and railways, with the aim of linking Latin American countries to global trade and maritime navigation corridors, and employing them in the service of China’s development projects, and thus restricting American influence around the world.  The US reaction to Chinese investments in Latin American countries, especially the new port project in Peru, came quickly through the US warning Latin American countries to be cautious of Chinese investments, and Washington expressing its concerns about the visit of Chinese President Xi Jinping to Peru and his inauguration of the main Chinese port project there. In addition, the US administration announced its intention to correct the position and policy of the United States in the Latin America and Caribbean region, by making radical and comprehensive changes to the US Development Finance Corporation, which is the agency concerned with the development of low- and middle-income countries, such as the Caribbean and Latin America. 

  In addition to the United States of America issuing warnings to Peru and Latin American countries about China’s growing activities on their lands, and the American claim that it is doing so and issuing these warnings under the pretext of fearing for the interests of Latin American countries, due to China’s lack of respect for local laws, human rights and the environment. Prior to that, the official website of the American Council on Foreign Affairs published an article on June 15, 2023, entitled: “China’s Growing Influence in Latin America”, which stated that “Beijing’s growing influence in the region raises concerns in Washington and beyond”. Here, the United States of America and its allies fear that Beijing will use these relations to achieve its geopolitical goals, according to accusations by American officials against Beijing, especially after the step of opening the new port in Peru.  As for the position of Peru and all Latin American and Caribbean countries themselves regarding the American policy in confronting them, it came through their confirmation that despite these American attempts over many years to increase its influence in Latin American countries, Latin American countries have not been able to achieve the desired political stability and economic development due to the hostile American intervention policy. Also, now with the United States of America shifting to a protectionist position, Latin America’s trade development opportunities have eroded, to the point that some of them are facing multiple crises due to the irresponsible monetary policy pursued by the US Federal Reserve.  The Chinese response to these American allegations regarding the development of its relations with Latin American and Caribbean countries, through various media outlets in China and its official newspapers affiliated with the ruling Communist Party in China, was to praise the determinants of China’s relationship with Latin American and Caribbean countries, which the Chinese media summarized as: Despite the distance between China and Latin American and Caribbean countries, they share broad common interests and support and help each other constantly, as a model of cooperation between (South-South countries),which is characterized by mutual benefit and win-win results. From this, China will focus in the coming period on deepening practical cooperation in various fields and pushing relations with Latin American and Caribbean countries to a higher level, while the Chinese refute and invalidate and oppose the stubborn Cold War mentality of some countries, in reference to the United States of America and its attempts to divide the international community through ideological confrontation.  China emphasizes that cooperation between China and Latin America is based on equality and mutual benefit without any geopolitical considerations and does not target any third party or seek to replace one party with another, and must be free from the interference of third parties, such as the United States in particular.

  Accordingly, there are positive trends towards rapprochement with China by Peru and various Latin American and Caribbean countries, as well as a growing perception of China as a reliable partner in the Latin American and Caribbean region. The Southern Common Market, known as (Mercosur), has already shown great interest in seeking to expand cooperation with China, which is based on mutual benefits and the broad potential for cooperation with China, and win-win cooperation.

Dr.Nadia Helmy
Dr.Nadia Helmy
Associate Professor of Political Science, Faculty of Politics and Economics / Beni Suef University- Egypt. An Expert in Chinese Politics, Sino-Israeli relationships, and Asian affairs- Visiting Senior Researcher at the Centre for Middle Eastern Studies (CMES)/ Lund University, Sweden- Director of the South and East Asia Studies Unit