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China deepens regional foothold in Latin America

Chinese controlled port in Peru

Important Takeaways:

  • The new Chinese-controlled port in Peru is part of Chinese leader Xi Jinping’s strategy to outflank the United States by establishing a maritime and land corridor linking China to Latin America.
  • As the Biden administration winds to a close, the Chinese Communist Party (CCP) is aggressively expanding its influence in South America. On Nov. 14, Xi Jinping and Peruvian President Dina Boluarte inaugurated a $3.6 billion port in Chancay, Peru, marking another major step in China’s economic foothold in the region.
  • Earlier this year, Boluarte traveled to Beijing to strengthen Sino–Peruvian ties, cementing Peru’s position as the second-largest recipient of Chinese foreign direct investment in Latin America. Notably, this includes China Southern Power Grid’s acquisition of Peru’s electricity distribution, placing 100 percent of this critical infrastructure under CCP control.
  • In stark contrast, the White House failed to engage Boluarte during her 2023 visit to Washington, missing a key opportunity to counter Beijing’s growing influence. The port inauguration coincided with the Asia-Pacific Economic Cooperation (APEC) summit in Lima, where U.S. President Joe Biden and leaders from 21 member economies convened. The timing underscores a stark reality: while the United States watched from the sidelines, the CCP was actively drawing Latin America deeper into its orbit, delivering a clear and humiliating message to the United States about its waning influence in the region.
  • The Chinese shipping giant COSCO owns a 60 percent stake in Peru’s Chancay port, which will serve as a critical node in China’s Belt and Road Initiative and its first logistics hub in the Americas. Strategically positioned, the port grants China access to Peru’s abundant copper reserves—essential for dominating global markets in electric vehicles and data centers. Equipped with cutting-edge technology, including automated cranes and driverless electric trucks, the port’s scale and proximity to the United States have raised serious concerns about potential military use by the Chinese People’s Liberation Navy.

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