Perus New Megaport reveals a refined belt and road

China should be extremely grateful to the Peruvian government of Dina Boluarte. Thanks to his congress, which rewrite The rules of foreign property to get there after a long dispute with the country Ports Authority, the giant of the Chinas Cosco of State Cosco wrapped an exclusive use of the brand new megaport in deep water of Chancay for 60 years.

Many other advantages come with the agreement. For a relatively low investment of approximately $ 1.6 billion, its share of the total cost of $ 3.6 billion Cosco has a 60%stake. China also gets a new important link between China and Latin America in the form of two new container shipping routes.

Simultaneously, the logistical costs of Chinese exports in the region will drop considerably and the operator's revenues, COSCO ports, will increase. There will also be other possibilities for Chinese connections in the region, while President Xi Jinping wanted to mention when he Officially open the port in mid-November.

The port is a conventional belt and road operation which takes more than it gives.

Again, the belt and road strategy of Chinas beat the United States in punch. Located 80 kilometers from the capital Lima, the port symbolizes the Americas that continue and the expensive negligence of Latin America. That said, Peru, a nation of 38 million, already has a significantly larger trade with China ($ 36 billion) than with the United States ($ 21 billion) when it should, of course, be the opposite.

American negligence

Outgoing President Joe Bidens visits Peru and Brazil in November is only his second in South America throughout his mandate. As a Atlantic Council underlines: At both judgments, he will seek to find ourselves a momentum, but without too much offering the losses of the Democratic Party last week. Donald Trump made only one visit to this region of 33 countries during his last mandate and it was in Argentina.

Meanwhile, the port is a conventional belt and road operation which takes more than it gives. Although it promises to increase perus exports in the Pacific, to deliver $ 4.5 billion a year of income and to create 8,000 jobs, its construction has been swarmed in controversy. Pierce Public eye poor notes This cosco and volcano, a local mining group that shared the construction, were able to seize a large maritime area which was to be assigned to La Défense, start working without any environmental studies (landslides during the construction of a 1 tunnel, 8 km), and bought public land within a dollar per square meter. Complaints for compensation for local protest groups were welcomed by indifference and harassment.

The higher American soldiers are also concerned. Last year, General Laura Richardson of US Southern Command warned that China is on the line of 20 yards of our homeland, citing potential chancellors to be a Double -use installationaccommodate military ships. If that were to happen, the Cosco ports would be in the middle.

If a conflict was to break out, for example, Taiwan or the Sea of ​​southern China, this global network of 38 ports exploited by Cosco could pose a serious logistical challenge for foreign soldiers who seek to move ships or supplies to Indo- Peaceful, warnings The Atlantic Council.

And its 39 ports. In October, Cosco bought substantial participation in the largest port of containers in Thailand, Laem Chabang, for 110 million US dollars, according to his website. Extremely profitable according to its latest accounts, Cosco claims a profit of 28% on rapid growth income, at around a quarter of its ports abroad. At the end of 2024, Cosco built and / or operating ports in strategic waterways from the Aegean Sea to the Panama Canal.

The problem may be that Western style capitalism cannot compete with the CHINA version managed by the State.

THE Atlantic Council believes that its high -time Western countries have intervened with their own fixed assets in order to counter the Chinese (and Russian) influence in Latin America and the Caribbean. These should be attractive and affordable alternatives for regional economic development which would be based on investments in projects that would serve as alternatives to initiatives supported by Beijing. The problem may be that Western style capitalism cannot compete with the CHINA version managed by the State. For example, no American company will offer the major expansion of the Colombias Bogota metro, while three Chinese companies have done so.

Meanwhile, like the low institutes the latest Pacific help card shows China refines its belt and road strategy in the Pacific thanks to a resurgence of new projects commitments [that] Report a revival in Beijing's commitment to the region. In concrete terms, target China of specific countries with large ticket subsidies rather than loans while distributing Smaller high frequency subsidies administered by its embassies. The Salomon Islands Development Fund has, for example, have banned a large -scale direct budget transfer from Beijing, while Kiribatis Social Stability Fund is a beneficiary of a substantial transfer, also graceful of Beijing. As the Institute explains, each of these loans is characterized by low mechanisms of responsibility. (No reference to these subsidies can be found on the two sites of the official government.)