U.S. Warns Peru Risks Losing Sovereignty To China

The Trump administration on Wednesday raised concerns that China’s growing control over key infrastructure projects in Peru could threaten the South American nation’s sovereignty. The warning followed a Peruvian court ruling that limited the authority of a local regulator over a major Chinese-built port.

At the center of the dispute is the $1.3 billion deepwater port in Chancay, located north of Lima. The project has become a powerful symbol of China’s expanding presence in Latin America and a focal point of rising tensions between Washington and Beijing.

The U.S. State Department’s Bureau of Western Hemisphere Affairs voiced its concerns on social media, stating it was “concerned about latest reports that Peru could be powerless to oversee Chancay, one of its largest ports, which is under the jurisdiction of predatory Chinese owners.”

It further emphasized: “We support Peru’s sovereign right to oversee critical infrastructure in its own territory. Let this be a cautionary tale for the region and the world: cheap Chinese money costs sovereignty.”

The remarks come as the Trump administration seeks to reinforce U.S. influence in the Western Hemisphere, where China has steadily expanded its footprint through infrastructure financing, large-scale loans and growing trade relationships.

Chancay Port, situated along Peru’s Pacific coastline, forms part of China’s Belt and Road Initiative — a global infrastructure strategy through which Chinese state-owned banks finance major projects such as ports, highways and airports worldwide. As the deepest port in Latin America, Chancay can accommodate some of the largest cargo ships operating between Asia and South America. China has also been Peru’s largest trading partner for more than a decade.

Cosco Shipping, China’s state-owned shipping and logistics giant and the majority stakeholder in the port, rejected the U.S. claims. In a statement to The Associated Press, the company said the court’s decision “in no way involves aspects of sovereignty” and maintained that the port remains “under the jurisdiction, sovereignty and control of Peruvian authorities, subject to all Peruvian regulations.”

Cosco also noted that multiple Peruvian agencies including police, environmental regulators and customs authorities continue to oversee port operations.

The controversy stems from a Jan. 29 ruling by a lower court judge that directed Peruvian authorities to refrain from exercising “powers of regulation, supervision, oversight and sanction” over the Chancay port.

Ositran, Peru’s transportation infrastructure regulator responsible for supervising the country’s other major ports, announced plans to appeal the decision.

“(Cosco Shipping) would be the only company providing services to the public that could not be supervised,” said Verónica Zambrano, president of Ositran, in an interview with a local radio station.

Zambrano added that although the port is privately owned, it occupies approximately 180 hectares (445 acres) of Peruvian territory, placing it within the government’s responsibility to ensure compliance with national standards and consumer protections.

Peru’s Foreign Ministry declined to comment on the matter, and China’s Embassy in Peru did not respond to media inquiries.

The dispute underscores the broader geopolitical rivalry between the U.S. and China, as Washington grows increasingly wary of Beijing’s expanding economic and strategic influence across Latin America.