Reporter’s Notebook: Peru Unveils Chancay Port at APEC Summit … With A Little Help From China

A significant development in Sino-Latin American trade took place with the inauguration of the $1.3 billion Chancay Port Project during the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru. This summit serves as a vital forum for leaders to navigate global trade issues amidst economic and geopolitical challenges [para. 1][para. 2]. Hosting the APEC for the third time, Peru is showcasing its influence in the region, and the Chancay Port project highlights China's role in reshaping the supply chain of Latin America’s fourth-largest country [para. 3].

Key figures from major economies like China, the United States, and Japan attended the summit to discuss essential themes such as sustainability and economic inclusiveness, although notable absentees like Russia reflected ongoing geopolitical rifts [para. 4]. Lima, a city with 11 million residents, faces challenges such as traffic congestion and neglected infrastructure, pointing to a pressing need for investment, a sentiment echoed by locals hoping for greater global recognition of Peru’s potential [para. 5][para. 6].

Peru, categorized as a middle-income country with a GDP per capita of $8,000, is striving to diversify its economy beyond traditional agriculture and mining by attracting foreign investments. China plays a crucial role as Peru's largest trade partner, accounting for a significant portion of Peruvian exports, primarily in minerals and agricultural products, as well as imports of machinery and electronics [para. 7][para. 8]. The two nations solidified their economic relationship through a 2009 free trade agreement, which was reinforced in 2019 by Peru joining China’s Belt and Road Initiative, with a fresh trade agreement announced in 2024 [para. 9].

The Chancay Port is a pivotal project symbolizing the deepening Sino-Peruvian ties. The infrastructure, heavily backed by China COSCO Shipping Corp. Ltd., aims to streamline shipments to Asia, enhancing Peru’s position as a logistical hub with a capacity to handle 1 million TEU containers annually. This groundbreaking project is projected to advance Peru’s economy significantly, accounting for 1.8% of its GDP according to the transportation minister, and create thousands of jobs while strengthening regional connectivity [para. 10][para. 11][para. 12][para. 13].

Despite the port's economic advantages, COSCO’s project faced hurdles, including a resolved dispute over operating rights, environmental concerns, and local community disruption. Speculations of dual-use for military purposes were firmly denied by COSCO’s management [para. 14][para. 15]. The project's promise to facilitate economic exchange between China and Latin America resonates positively with many Peruvians, with the APEC summit being viewed as an opportunity to spotlight Peru's economic and cultural strengths [para. 16][para. 17][para. 18].

The summit also underscores socio-economic challenges, such as crime, linked to the influx of Venezuelan migrants since 2014, which has strained Peru’s public services and social cohesion [para. 19][para. 20]. In response, Peru's government advised against public unrest during the summit to ensure a positive international image, as President Boluarte navigates security and social issues during her tenure as Peru’s first female president [para. 21][para. 22].