Trump Administration Warns Peru of Sovereignty Loss to China Over Chancay Port

The Trump administration has issued a stark diplomatic warning to Peru, asserting that the massive Chancay port project represents a critical threat to the South American nation's sovereignty. Officials in Washington argue that the $1.3 billion deep-water terminal, majority-owned by a Chinese state enterprise, effectively cedes control of vital infrastructure to Beijing.

Located just north of Lima, the Chancay megaport is designed to serve as a primary trade hub connecting Latin America directly to Shanghai. While the Peruvian government touts the economic benefits of reduced shipping times, the White House views the facility as a strategic foothold for the Chinese Communist Party in the Western Hemisphere.

The primary concern articulated by U.S. intelligence involves the potential for the port to serve dual-use purposes, blending commercial logistics with military capabilities. Defense analysts warn that the deep-water drafts required for massive container ships could easily accommodate Chinese naval vessels in a future conflict scenario.

Beyond military implications, the administration's advisory highlights the risk of economic coercion where debt or logistical dependence forces political alignment with China. This narrative aligns with the broader "America First" foreign policy, which seeks to dismantle Beijing's Belt and Road Initiative influence throughout the Americas.

This escalation marks a significant pivot in U.S.-Latin American relations, as Washington demands that its neighbors choose between traditional alliances and Chinese investment. Peru now finds itself in a precarious diplomatic position, balancing its longstanding trade partnership with the United States against its deepening financial ties to Asia.

Peruvian authorities have previously defended the project as a purely commercial enterprise intended to modernize the country's aging export infrastructure. However, the renewed pressure from the Trump White House suggests that future trade agreements or security cooperation with the U.S. could be contingent on limiting China's operational control.

The warning serves as a litmus test for the administration's aggressive strategy to reclaim influence in a region that has increasingly looked east for capital. By framing the port as a sovereignty issue rather than just economic competition, the United States is raising the stakes for all nations currently entertaining Chinese infrastructure bids.

As tensions mount, the State Department has indicated that further diplomatic measures may follow if security protocols at the terminal are not revised to exclude foreign military access. The outcome of this standoff will likely define the geopolitical landscape of the Pacific coast for decades to come.