US Calls for Caution as Chinese Companies Open Megaport in Peru

November 17, 2024 TruthUSA

The Chinese Communist Party could potentially exploit the Peruvian port to spy on U.S. naval and commercial ships, according to U.S. officials and researchers.

Brian Nichols, the top U.S. diplomat for Latin America, has warned countries in the Western hemisphere to remain vigilant about Chinese investments following the opening of a large deep-water port in Peru by Beijing.

“We believe it is crucial for countries in the hemisphere to ensure that economic activities by the People’s Republic of China (PRC) comply with local laws, respect human rights, and protect the environment,” Nichols stated to reporters on Nov. 14.

Nichols emphasized that the United States is working closely with Peru to ensure that deals with other investors are handled with caution.

These remarks were made in reference to the China-owned Chancay port located north of Lima, which was inaugurated on Nov. 14 where Xi Jinping and Peruvian President Dina Boluarte were in attendance virtually. Xi described the port as the first smart port in South America and a flagship project of the Belt and Road Initiative.

The opening of Chancay port is expected to reduce shipping times to China from Peru to 23 days, cutting logistics costs by 20 percent, generating $4.5 billion in annual revenue, creating over 8,000 direct jobs, and benefiting the local economy.

Local Protests

Despite Xi’s optimistic projections, there is growing discontent among local residents due to the negative impact of port construction on the fishing village and nearby homes. The Chinese construction team has reportedly intimidated residents and colluded with officials to keep the damage under wraps.

Concerns have been raised by researchers and officials in Washington about Chinese ownership of the port, fearing it could be used by the Chinese Communist Party to spy on U.S. ships. In addition, there are worries about the security of data generated by the port’s extensive operations.

General Laura Richardson also expressed concerns about the potential exploitation of resources from Latin America by the CCP through the Chancay port. She emphasized the need for the U.S. and other democracies to provide alternatives for Latin American nations to consider.

Furthermore, Richardson highlighted the significance of paying attention to the region, particularly with the construction of another Chinese mega-port south of Lima and the development of iron mine projects in Peru by Chinese companies.

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