Chinese leader Xi Jinping arrived in the Peruvian capital of Lima on Thursday (14th) to attend the Asia-Pacific Economic Cooperation (APEC) Leaders Meeting. Despite local protests, he participated in the opening ceremony of the “Chancay Port”, a major project under Peru’s participation in the Belt and Road Initiative, through a video call with President Dina Boluarte.
The Chancay Port, costing $1.3 billion and operated exclusively by China’s shipping giant COSCO, is set to become the largest deepwater port in South America. It will accommodate large container ships of up to 18,000 TEUs (20-foot equivalent units) and handle an annual container volume of one million units.
During his visit, Xi Jinping was expected to attend the port opening ceremony with President Boluarte, but due to ongoing protests by local residents, concerns over potential disruptions led to their decision to join the event remotely.
The surrounding area of Chancay Port is a small fishing village with a population of 60,000, primarily reliant on fisheries and tourism. The government’s decision to push forward with the construction of the port under the Belt and Road Initiative without consulting local residents has sparked discontent among the community.
Reports from sources in national security indicate that over the past five years, the Chinese construction activities have caused severe damage to local homes using explosives, disrupting the livelihood of local fishermen and ecosystems. The construction teams have allegedly threatened residents and collaborated with Peruvian officials to conceal damages incurred.
Local residents had planned to voice their protests directly to President Boluarte and Xi Jinping during the port’s inauguration ceremony. Despite not being fully operational, the fishing resources have already started dwindling, impacting the local economy as evident by the deserted seafood restaurants in the area.
Fishermen living around the port have expressed frustration over the disruptions to fishing grounds caused by the port construction, leading to significant losses in their catch. The impact has forced them to venture further out to sea using larger and more expensive vessels, adding pressure on their livelihoods.
The Belt and Road projects have a history of stalled progress or turning into white elephants, leading to limited economic benefits and debt crises for host countries, as seen in Sri Lanka and Pakistan. The completion of the Chancay Port in Peru could potentially result in a similar fate, with concerns of debt crises and political consequences looming over the country due to the extended involvement of China in the port’s operations.
Rumors of corruption within President Boluarte’s administration, including allegations of compromising national interests, have further fueled discontent. Past incidents involving luxury items found in her possession, raising questions on the source of these assets, have drawn attention to potential ties with Chinese investors linked to the exclusive operation rights of Chancay Port.
Reports from the Central News Agency have raised concerns about the potential military use of Chancay Port by China, with sightings of Chinese military personnel engaging in activities beyond commercial operations at the facility. While the direct impact on Taiwan seems limited given the distance, China’s expansion of its presence in ports around the world signals broader strategic ambitions that warrant vigilance.
As the Chancay Port becomes operational, Chinese coast guard ships may extend their reach to Antarctica, showcasing China’s military expansion under the Belt and Road Initiative. Reports suggest that China aims to leverage its influence at the APEC summit in Peru to secure hosting rights in 2026, oppose Taiwan’s participation in APEC, and block Taiwan’s accession to the CPTPP, potentially hindering Taiwan’s international integration.
Amid rumors of diplomatic pressure, Taiwan’s efforts to participate in APEC through academic representative Chen Jianren were reportedly thwarted by Peru under Chinese influence. The Taiwanese government has expressed disappointment at the developments, highlighting the challenges faced due to external pressures on Taiwan’s international engagements.