The United States has issued a stark warning to Peru regarding potential sovereignty erosion in its oversight of a Chinese-constructed megaport, highlighting escalating geopolitical tensions in Latin America. The Trump administration expressed grave concerns following a Peruvian court decision that limited local regulatory authority over the $1.3 billion deepwater port facility in Chancay, located north of Lima.
This strategic port development has emerged as both a symbol of China’s expanding influence across Latin America and a focal point for Washington-Beijing rivalry in the Western Hemisphere. The U.S. State Department’s Bureau of Western Hemisphere Affairs publicly cautioned that Peru risked becoming ‘powerless to oversee’ one of its largest ports under ‘predatory Chinese ownership.’
The Chancay port represents a cornerstone of Beijing’s Belt and Road Initiative, through which Chinese state-owned financial institutions provide substantial loans for global infrastructure projects. As the deepest port in Latin America, Chancay possesses capacity to accommodate the world’s largest cargo vessels traveling between Asian and South American markets, solidifying China’s position as Peru’s dominant trading partner for over ten consecutive years.
China’s state-owned Cosco Shipping, which holds majority ownership in the port, vehemently rejected U.S. allegations. The company asserted that the court ruling ‘in no way involves aspects of sovereignty’ and maintained that Peruvian authorities retain full jurisdiction and control over the facility. Cosco emphasized that multiple Peruvian agencies—including police, environmental regulators, and customs officials—continue to monitor port operations.
The controversial January 29 court order restricts Peru’s national transport infrastructure regulator Ositran from exercising standard regulatory, supervisory, and sanctioning powers over Chancay port. Ositran President Verónica Zambrano announced plans to appeal the decision, noting that Cosco Shipping would become ‘the only company providing public services exempt from supervision’ despite occupying 445 acres of Peruvian territory.
Peru’s Foreign Ministry declined commentary, while Chinese officials did not respond to requests for statement. The diplomatic exchange occurs amid broader U.S. efforts to counter China’s growing hemispheric influence through substantial loans and trade relationships.