Peru Rules to Regulate Chinese-Owned Port, Advancing U.S. Efforts to Curb China's Influence

LIMA, July 2 (CNA) -- A Peruvian court has ruled that the government can regulate a Chinese-owned port near Lima, a decision that could help the United States curb Beijing's growing influence in the region.

The ruling overturns a January decision that had declared the Chancay Port, located on the Pacific coast, exempt from some oversight by Peru's supervisory agency for public transport infrastructure investment (Ositran), according to Bloomberg.

Chancay Port, a private facility operated by China's COSCO Shipping Ports, is intended to shorten shipping times between Latin America and Asia. However, it has become a focal point of increasing competition between Washington and Beijing as the U.S. refocuses its attention on the region.

The previous ruling had alarmed the Trump administration, which warned that it would undermine Peru's sovereignty. Peru's infrastructure regulatory agency also criticized the decision, stating it would leave port users unprotected.

"Let the region and the world take note: Chinese investment may seem cheap, but the price is national sovereignty," the U.S. State Department's Bureau of Western Hemisphere Affairs posted on social media platform X last February.

U.S. Ambassador to Peru, Bernie Navarro, congratulated the ruling on social media. He visited Chancay Port for the first time last month and donated two scanners aimed at improving the efficiency of Peru's customs agencies.

The new ruling adopts the argument that although Chancay Port is privately owned, it is a port for public use. Therefore, according to Peruvian law, the port falls under the jurisdiction of the infrastructure regulatory agency, which has the authority to regulate, supervise, inspect, and sanction operators, the agency said in a statement.

The ruling can still be appealed. COSCO Shipping Ports did not respond to a request for comment. (Compiled by Chen Yu-ting) 1150702

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