Located in the coastal town of Chancay on the Pacific coast of Peru, a large port was officially inaugurated on Thursday (November 14). Local residents expressed that the “Belt and Road” project funded by the Chinese Communist Party deprived them of their economic interests.
According to reports by the Associated Press, Chinese President Xi Jinping is set to attend the unveiling ceremony of the Chancay Port during the Asia-Pacific Economic Cooperation (APEC) summit in Peru.
Situated 78 kilometers north of Lima, the capital of Peru, the China Ocean Shipping Company (Cosco) invested 1.3 billion US dollars to build a large deep-water port – the Chancay Port.
Cosco plans to construct 15 docks and a large industrial park here, expecting to attract over 3.5 billion US dollars in investment over the next decade. However, the project faced opposition from local villagers. They stated that the development plan deprived them of their fishing waters and did not bring any economic benefits to the local residents.
“Our fishing area is no longer there, all destroyed by them,” said 78-year-old fisherman Julius Caesar, pointing to the crane next to the dock.
The Peruvian government aims to transform the Chancay Port into a strategic hub for this region, connecting a new route between South America and Asia to accelerate the export trade of Peruvian blueberries, Brazilian soybeans, Chilean copper, and other products.
Peruvian officials claim that this port could bring in millions of dollars in revenue for the country and turn coastal cities into “economic zones” with tax incentives to attract investments.
However, many of the 60,000 residents in Chancay do not agree with the official statements. They complain that the construction of the deep-water port has damaged the natural environment, causing them significant losses.
Locals state that the port’s breakwater has altered water flow, disrupted good surfing conditions, and impacted everyone from ice cream vendors and truck drivers to restaurant owners. The words “Reject the giant port” have been spray-painted on a wall overlooking the beach.
According to the Financial Times, experts believe that the Chancay Port construction project funded by Chinese state-owned enterprises actually represents a concession of port sovereignty by Peru.
Evan Ellis, a Latin America research professor at the U.S. Army War College, stated, “Peru faces multi-layered risks. The primary risk is that the country does not benefit from its rich resources and geographical location, but instead, the Chinese (Communists) reap those benefits.”
In May of this year, amidst disputes with Cosco, the Peruvian parliament passed legislation granting Cosco the exclusive operation rights of the Chancay Port.
Ellis noted, “This was previously unimaginable and goes against the essence of Peru’s port sovereignty because ports are the country’s window to the world.”
For the United States, China’s growing influence in Latin America poses strategic risks, and the U.S. has warned that this port could be used by China to berth warships.
The U.S. State Department stated that they have discussed the issues related to the Chancay Port with Peru and emphasized the importance of “full supervision, security, regulation, and fair competition for all critical infrastructure projects.”
The U.S. official mentioned that they are not asking partners to choose between the U.S. and China, “but we are showing the benefits of cooperating with the United States.”