The US has expressed concern to Peru regarding China’s increasing control over critical infrastructure in the country. This includes electricity supply to the capital Lima and the construction of a new megaport on the Pacific coast. Chinese companies have been acquiring power, mining, and port assets across Latin America, but the scale and strategic position of their investments in Peru have raised particular alarms. A senior US official, speaking anonymously, stated that the Peruvian government needs to better analyze the potential benefits and threats to the country. Lima has not responded to requests for comment, but a source close to the government acknowledged the US concerns, stating that worries about Chinese capital acquiring crucial industries would be justified.
One example of these concerns is the sale of Enel’s Peruvian electricity business to China Southern Power Grid International for $2.9 billion. Another Chinese company, Three Gorges Corporation, owns the rest of Lima’s electricity supply as well as Chaglla, one of Peru’s biggest hydroelectric dams. Peru’s National Industries Society has voiced its complaint about the concentration of electricity distribution in Lima in the hands of China. Similarly, China’s state-owned shipping and logistics company Cosco is building a megaport at Chancay, which could have significant implications for maritime traffic in the region.
The US has suggested that Latin American countries create government committees to vet foreign investment in strategic sectors for national security reasons, similar to the Committee on Foreign Investment in the United States. China’s ambassador to Peru, Song Yang, has promoted the Chancay megaport project, likening it to Shanghai. However, concerns have been raised that these facilities could have dual military use and potentially be used for resupplying warships. Gonzálo Ríos Polastri, deputy general manager of Cosco Shipping Ports Chancay Peru, insists that the investment is purely commercial and poses no national security threat.
China sees Peru as an important source of minerals and imported $14 billion worth of copper ore from the country last year. The Chinese government claims that its overseas infrastructure projects prioritize mutual benefit, in contrast to what it believes is the US pursuit of hegemony in Latin America. Chinese companies have also invested in ports, 5G networks, and space monitoring stations across the region. The US has expressed concerns about China’s increasing influence in the Americas, while experts believe that China is focused on securing economic advantages through infrastructure development.
In terms of military implications, experts suspect that the Chinese may have considered the possibility of using Chancay for naval purposes. While its primary goal is to capture a larger share of the logistics trade, Chancay’s location and characteristics make it potentially viable for future naval facilities. Ellis added that China could use it to resupply naval vessels, similar to the Chinese-built Hambantota port in Sri Lanka.
Chinese investors previously attempted to secure a lease on almost half of El Salvador’s coastline for a port and free zones, which raised concerns in the US. The Salvadoran government was pressured to abandon the idea under US influence.
Additional reporting by Ryan McMorrow in Beijing
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
