China Opens $3.5B Megaport in Peru

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Facts

  • While visiting Peru for the annual Asia-Pacific Economic Co-operation Forum (APEC) this week, Chinese Pres. Xi Jinping and Peruvian Pres. Dina Boluarte attended the opening of China's $3.5B Chancay Port on the country's coast.[1]
  • 60% of the port is owned by Chinese company COSCO Shipping with the rest owned by Peruvian mining company Volcan. Located 80 km (50 miles) north of the capital Lima, it stands at 992 hectares (2.45K acres) large with a maximum depth of 17.8 meters (58 feet).[2]
  • Coming as Sino-Peruvian trade totaled $36B last year, the Chancay Port is projected to provide Peru $4.5B in annual revenue as well as 8K jobs. It's also expected to see exports from Brazil, Ecuador, Chile, and Colombia pass through to Asia.[1][2][3]
  • Local residents and fishermen have voiced concerns about the port's potential damage to fishing grounds and the prospect of pollution, oil spills, and the decline of their traditional livelihoods.[4]
  • COSCO completed its large container test runs last month, with the first official shipment — Peruvian fruit to China — expected to launch soon. Peru, whose number one trade partner is China, is also set to open another Chinese-funded port, the San Juan de Marcona port, next year.[5]
  • The megaport is part of China's Belt and Road Initiative, a global infrastructure development project that features 22 Latin American and Caribbean nations.[2][3]

Sources: [1]BBC News, [2]ABC, [3]China Daily, [4]Associated Press and [5]The Maritime Executive.

Narratives

  • Pro-China narrative, as provided by China Daily. The Chancay Port culminates a decade-long relationship between China and Peru, throughout which Beijing has been Lima's number one trading partner. Both countries believe in strengthening sustainable infrastructure, agriculture, and supply chains, as well as making advancements in digital technology and artificial intelligence. This is what the Belt and Road Initiative is all about: bringing countries together through mutual economic prosperity.
  • Anti-China narrative, as provided by WSJ. While no one can ignore the success China has had in Latin America, that doesn't mean the West, led by the US, should let it continue unchecked. China is using its positive talk about economic prosperity as a trojan horse to persuade Latin American nations to stop supporting Taiwan. Beijing will also pursue these geopolitical goals whether it benefits authoritarians or not. The West must reclaim its spot as Latin America's greatest ally before it's too late.

Predictions