It seems that two different forces are colliding in Latin America, trying to reshape the region’s power politics, socio-economic prosperity and trans-regional connectivity.
The Trump Administration is exerting geo-political and diplomatic pressure to reclaim its influence, while China is advancing beyond power politics, transforming states, societies and systems through robust trans-regional connectivity, socio-economic integration and quality industrialization.
The inclusion of 22 out of 26 Latin American countries in the Chinese Belt and Road Initiative (BRI) has sparked displeasure within the US, disrupting its hegemonic plans.
The recent visit of Chinese President Xi Jinping to Brazil and Argentina to further strengthen bilateral ties under BRI is a testament to this growing influence.
The signing of over 100 memorandums of understanding (MOUs) with Latin American countries since the BRI’s inception is a positive sign.
From Peru to Brazil and Argentina, the footprints of BRI are visible, accelerating progress, prosperity, integration and connectivity.
This expansion has helped China solidify its position as South America’s top trading partner, demonstrating the tangible benefits of the initiative in the region.
Since its operationalization, the Chancay Port in Peru has significantly reduced the transportation time of goods exported from South America to the Asian market, from about 35 days to 25 days.
This project benefits various industries and businesses in Peru and beyond, serving as a prime example of cooperation between China and Latin America under the Belt and Road Initiative (BRI).
The Chancay Port has become the only smart, green, and deep port in South America, making a significant impact not only on Peru but also on its neighbors and the region as a whole, which has, unfortunately, displeased the US.
The US has been involved in the Chancay Port issue, from proposing a 60-percent tariff on goods entering the US through the port to President Trump’s inaugural speech claiming that China controlled the Panama Canal.
These actions have caused unease among some South American countries.
The US political narrative also propagates the false claim that the Chancay Port poses a military threat to Peru, suggesting economic coercion—rumors that have been widely repeated since the project’s construction began in 2021.
These claims are unfounded and entirely untrue.
Additionally, the emerging Panama Canal issue reflects the US government’s intention to limit China’s BRI cooperation in Latin America, with concerns that further actions may follow.
As a result, the Chancay Port could become the next target of US pressure on China.
However, political smears and diplomatic pressure surrounding the Chancay Port cannot overshadow the tangible benefits it has already delivered to Peru and other countries in the region.
Official reports from Peru demonstrate that this Chinese-invested project has been, and will continue to be, highly beneficial for Latin America and its people.
Currently, the “Chancay-Shanghai” shipping route operates two regular weekly services between Chancay and Shanghai carrying products from China and Peru on a regular basis and efficiently reaching each other’s markets through this new route.
Since the launch of this new shipping route, Shanghai Customs has supervised the import and export of 22,000 tons of goods valued at 610 million yuan (US$84.2).
The Chancay Port has reduced logistics costs for shipping from Peru to China by over 20 percent.
Various official reports vividly reflect how trade between China and Peru has further flourished through the Chancay Port.
According to statistics from Shanghai Customs, in December 2024, the first month following the launch of the direct shipping route from Chancay to Shanghai, the total import and export value at the Shanghai ports with Peru reached 4.68 billion yuan, marking a year-on-year increase of 46.1 percent.
In the whole year of 2024, the total import and export value between the Shanghai ports and Peru amounted to 51.5 billion yuan, a 23-percent increase compared to the previous year.
Peru is one of the first Latin American countries to participate in the BRI.
China is also Latin America’s second-largest trading partner, with trade volume reaching US$427.4 billion with this region in the first three quarters of 2024.
After its operationalization and channelization, the Chancay places Peru as one of the main players in Latin America, becoming the most important hub, and will definitely contribute greatly to the economy of Peru.
On the other hand, the US politicians and policy makers have dubbed the US security and economic interests in Latin America which have no economic reliability or relevance.
It has serious consequences that the US Administration has been hyping smears against the project since the construction of the Chancay Port began.
Furthermore, in recent months, it has intensified their efforts in continuously reviving false narratives such as military use and economic coercion of the port, intentionally projecting China’s expansion of influence in Latin America.
Ironically, former US Southern Command’s commander Laura Richardson told the US House Armed Services Committee in March, hinted that Chancay could be used by Beijing’s navy.
In summary, US geopolitics are increasingly harming its allies and the international community due to the relentless imposition of tariffs and sanctions on countries like China, Canada, and Mexico.
Many prominent Latin American experts believe that the US government may open a “Pandora’s box,” potentially leading to surgical strikes or even full-fledged war against any China-aligned ally in the region.
The US propaganda that the Chancay Port is being used as a military base is a baseless claim.
It is clear that the Chancay project follows the common Build-Operate-Transfer (BOT) model, widely used for large-scale infrastructure projects, demonstrating the openness and transparency of both China and Peru.
Despite the ongoing US hype, the Chancay Port promises substantial economic benefits for Peru.
It is expected to generate US$4.5 billion annually for the country, equivalent to 1.8 percent of its GDP.
The construction of the port has created 2,000 direct jobs and around 8,000 indirect jobs, further boosting the economic dynamics in the region.
Additionally, the BRI cooperation attracts significant investment in key sectors, fostering economic development and job creation.
The signing of over 20 cooperation agreements by Latin American countries under the BRI highlights its strategic importance, utility, and the potential for expanding trans-regional connectivity and infrastructure.
China’s commitment to economic globalization and international cooperation remains firm, with the country welcoming increased investment and collaboration in Latin America from all nations, including the US.
This cooperative approach aims to jointly promote prosperity and development across the region.
The Chinese government has consistently pursued constructive competition and cooperation with the US, emphasizing the importance of avoiding politically motivated hype and media smoldering targeting Chinese BRI projects in Latin America.
These projects should not be misrepresented as military threats or debt traps, as some claim.
Ultimately, these BRI projects are open, transparent, financially viable, and economically valuable, offering immense stability, social sustainability, and technological advancement.
They are designed to benefit all participating countries by fostering greater connectivity, infrastructure development, and socio-economic integration, while also contributing to long-term regional prosperity.
