China's megaport in Peru could trigger resource conflict with US: Report

China's efforts to extend its global influence have led to the construction of a major port in South America, potentially exacerbating tensions with the United States. 

According to The Wall Street Journal, Beijing is developing a deep-water port in Chancay, Peru, which is expected to be inaugurated by Chinese President Xi Jinping later this year.

The $3.5 billion port, being built by China's Cosco Shipping, is set to enhance trade between Asia and South America and open new markets for Chinese electric vehicles and other exports. Notably, it will be the first port on South America's Pacific coast capable of accommodating mega ships, thanks to its nearly 60-foot depth.

However, this development poses a strategic challenge for the US, which aims to curb China's growing influence in Latin America. The US is concerned that China's control over the port will strengthen Beijing's grip on South American resources.

"This will further make it easier for the Chinese to extract all of these resources from the region, so that should be concerning," Army Gen Laura Richardson, head of the US Southern Command, told The Wall Street Journal.

US-China relations have deteriorated significantly in recent decades, though both nations have recently sought to reengage diplomatically at high levels.

"Peru port will be a window into Asia"

Daniel Bustamante, a blueberry and avocado farmer on Peru's coast, expressed optimism about the new port, telling the WSJ that it will open Asian markets for his produce, which he currently ships mostly to Europe and the US.

"This will be a window into Asia," Bustamante said.

Currently, shipping routes between Peru and China take about 35 days, which is too long for most perishable foods. The port in Chancay is expected to cut this time by a third, significantly reducing business costs, according to the WSJ.

The port is approximately 70% complete and is slated for inauguration during the Asia-Pacific Economic Cooperation (APEC) leaders' summit in November, with Xi Jinping expected to attend.

Additional Chinese investment in Peruvian ports

In another development, a subsidiary of Chinese firm Jinzhao has been awarded a contract to construct a port in southern Peru, requiring $405 million in investments. 

Construction is expected to begin by the end of 2025. Jinzhao Peru will receive a 30-year concession to operate the port, which will handle bulk goods including iron concentrate and copper, reactivating mining projects worth $15 billion, as reported by Reuters.

Peru is among several South American nations participating in China's Belt and Road Initiative infrastructure project.

Peru president to visit China

Peruvian President Dina Boluarte is scheduled to visit China later this month to meet with President Xi Jinping on 28 June. 

During her visit, she will also meet with executives from Cosco Shipping Ports, Chinese telecom giant Huawei, and electric carmaker BYD, as well as Jinzhao Mining and China Railway Construction Corporation (CRCC).