23 December 2024

Wakeup Call: The U.S. Risks Losing Latin America to China

Michael Cunningham

When U.S. officials are asked about China, the discussion usually defaults to Taiwan or tariffs. But another threat from Beijing has been growing for years, and it can be found much closer to home—in Latin America. Case in point: the deep-sea mega-port that just opened in Chancay, Peru.

A port opening hardly looks like something that should worry the United States. But this port is 60 percent-owned by the Chinese state-owned giant COSCO Shipping, which has exclusive operating rights.

Chancay Port is a huge win for Beijing. It’s expected to slash roughly 10 days off the time it takes to ship goods between China and South America, making it easier and more cost-effective for Beijing to exploit the continent’s resources and flood the region with its exports, from solar panels to electric vehicles. These benefits will further multiply after a planned rail link connects Chancay to Brazil, China’s biggest South American trading partner.

Peru’s government hopes the new port will enable it to capitalize on China’s increasing trade with the region and become, in the words of one Peruvian official, “the Singapore of Latin America.”

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