Peru has annulled China’s exclusive control over its $3.5bn Chancay Port, amid concerns over Beijing’s grip on Latin American infrastructure

The Peruvian Government terminated the exclusive right of COSCO, the Chinese state-owned shipping company, to operate the Chancay megaport COSCO is currently building under China's Belt and Road Initiative (BRI). The BRI has enticed more than 150 countries worldwide to sign up for Chinese investment in key infrastructure; from pipelines, power plants and telecoms networks, to airports, roads, railways and ports.

In Peru, Beijing has focused heavily on exporting the country’s large commodities market, led by copper, gold, gas, and grapes.

While promoting Chinese aims – and trade – overseas remains the overarching goal of the BRI, Beijing’s strategy in Peru “has evolved over the last couple of years”, according to Rory Green, chief China economist and head of Asia research at TS Lombard.

“China’s BRI investment has moved away from unrestrained outbound investment to a much more strategic approach”, Green tells Ship Technology. “BRI and outward direct investment are now focused on a few core objectives; the supply of essential raw materials, access to major markets, acquisition of tech IP – and geopolitics.”

Some see the BRI, or so-called ‘New Silk Road’, as a harbinger of a new era of trade and growth for developing economies in Asia, Africa and Latin America.

Sceptics say China is using the BRI to lay a debt trap for borrowing governments – and use its right to retain the right to demand repayment at any time for geopolitical leverage over issues such as Taiwan’s sovereignty or the treatment of Uyghurs.