In blunt warning, the US says Peru could lose its sovereignty to China
LIMA, Peru (AP) — The Trump administration on Wednesday expressed concerns that China is costing Peru its sovereignty in consolidating its control over the South American country’s critical infrastructure; It was a clear warning after a Peruvian court restricted a local regulator’s control over a Chinese-built megaport.
$1.3 billion deep water port in ChancayThe city, north of Peru’s capital Lima, has become a symbol of China’s foothold in Latin America and a lightning rod in tensions with Washington.
The U.S. State Department’s Bureau of Western Hemisphere Affairs said on social media it was “concerned by recent reports that Peru may be powerless to police Chancay, one of its largest ports under the jurisdiction of its marauding Chinese owners.”
The statement added: “We support Peru’s sovereign right to control critical infrastructure within its territory. Let this be a cautionary tale for the region and the world: Cheap Chinese money costs sovereignty.”
The concern comes as the Trump administration seeks to dominate the Western Hemisphere. China has long had influence through large loans and high trading volumes.
The Chinese government on Thursday strongly rejected the US comments.
“China firmly opposes and strongly regrets the US’s blatant rumor spreading and slander against the Chancay port,” Foreign Ministry spokesman Lin Jian said at a daily briefing in Beijing.
Chancay, on the Pacific coast, is part of Beijing’s Belt and Road initiative, an infrastructure program in which Chinese state banks offer large loans or financial guarantees to build ports, airports and highways, among other projects, on many continents.
As Latin America’s deepest port, Chancay has the capacity to dock some of the world’s largest cargo ships traveling between Asia and South America. China has been Peru’s largest trading partner for more than a decade.
Cosco, China’s state-owned shipping and logistics company, which is the majority shareholder of the port, denied the US allegations.
In response to questions from The Associated Press, he said the court decision “in no way involves elements of sovereignty” and insisted that the port remains “under the jurisdiction, sovereignty and control of Peruvian authorities, subject to all Peruvian regulations.”
He added that there are numerous Peruvian officials monitoring the port’s activities, including police forces, environmental regulators and customs officials.
A lower court judge’s Jan. 29 ruling orders Peruvian authorities to refrain from exercising “regulatory, supervisory, surveillance and enforcement powers” over the port of Chancay.
Regulator Ositran, which oversees all the country’s other major ports, said it would appeal the decision, arguing there was no reason to exempt Cosco Shipping from the agency’s oversight.
“(Cosco Shipping) will be the only company offering unmonitored services to the public,” Ositran president Verónica Zambrano told a local radio station on Wednesday.
Although privately owned, the Port of Chancay covers 180 hectares (about 445 acres) of Peruvian territory, making it subject to government efforts to monitor and enforce compliance with local user protection standards, Zambrano added.
