US, China clash over Peru’s Chancay megaport after court bars regulator oversight

The US and China are in disagreement over the Chancay megaport in Peru. The US expressed concern that a court ruling limiting Peruvian state oversight of the Chinese-controlled port could erode Peru's sovereignty. The port, majority-owned by China's Cosco Shipping Ports, is a $1.3 billion deep-water facility located north of Lima. Inaugurated in November 2024, the port has reduced shipping times between China and Peru and cut logistics costs. The US State Department warned that Peru might be powerless to oversee the port due to "predatory Chinese owners," prompting a sharp rebuke from Beijing and escalating geopolitical tensions surrounding the strategic South American port.

The U.S. government is warning Peru that China's increasing control over the Chancay deep-water port could threaten Peruvian sovereignty. This concern stems from a Peruvian court ruling that limits government oversight of the $1.3 billion project, located north of Lima. U.S. officials expressed worry that Peru may be powerless to oversee the port, which they claim is under the control of "predatory Chinese owners." China's foreign ministry dismissed these concerns as rumor-mongering, asserting that the project remains under Peruvian authority. Analysts suggest the port is a key component of China's strategic investment in Latin America, providing a bridge across the Pacific and access to new markets, while also potentially posing a military threat in times of war.