China megaport opens up Latin America as wary US looks on

An article by BBC delves into the growing influence of China in Latin America, particularly highlighted by the inauguration of the Chancay megaport in Peru, and the broader implications of China's expanding economic footprint in the region. The piece highlights the competitive tensions between China and the United States as China strengthens its presence in a region traditionally viewed as the US' sphere of influence.

The Chancay port is a critical symbol of China’s Belt and Road Initiative (BRI) in Latin America, underscoring China’s intent to establish economic and potentially military footholds in the region. The port, located in Peru, is a major infrastructure project that will facilitate trade not only for Peru but also for neighboring countries like Chile, Colombia, and Brazil, by significantly reducing shipping times to China. China's investment in such large-scale infrastructure projects indicates its long-term commitment to developing strategic trade routes that bypass North America entirely.

The Chancay port’s potential to host ultra-large container ships also fuels concerns that it could serve dual purposes, including military applications, which has raised alarms among US military officials.

The article highlights the growing anxiety in the US about China's activities in Latin America, especially with regard to military and strategic interests. Former US Southern Command Chief Gen. Laura Richardson has warned that China could use these new facilities for dual military and civilian purposes, positioning China to establish "multi-domain access" points that could strengthen its influence over key maritime chokepoints in the region. The US is also portrayed as having been neglectful or indifferent toward Latin America for years, allowing China to step in and fill the vacuum.

The piece touches upon the shifting geopolitical dynamics, with China capitalizing on US disengagement. Latin American countries, regardless of political leanings, have lowered their guard against China, viewing its offers of infrastructure and trade opportunities as essential for their economic development. Despite concerns about mounting debt from Chinese-backed projects, many governments see cooperation with China as a practical necessity. This dynamic is particularly concerning to the US, which feels its influence waning in a region that has long been its backyard. Monica de Bolle from the Peterson Institute articulates this, noting that the US is now playing catch-up as China strengthens its foothold.

The article suggests that Latin American countries may soon face difficult decisions regarding their relations with the US and China, especially as the US might exert pressure to curb China's growing influence. With trade agreements such as the USMCA coming up for renegotiation, countries like Peru, Chile, and Colombia could be caught between US demands and the financial incentives offered by China. The possibility of US renegotiating trade deals and exerting more leverage over its neighbors could create tensions in the region, especially if these countries are pressured to choose sides between the two superpowers.

A recurring theme in the piece is the need for a more coherent regional strategy in Latin America. Prof. Álvaro Méndez of the London School of Economics suggests that Latin America must avoid being relegated to the role of a mere pawn in the rivalry between the US and China. Instead, Latin American countries should adopt a more strategic and unified approach to foreign relations, focusing on regional cooperation and ensuring that the benefits from both the US and China are maximized. However, as the piece acknowledges, achieving such coordination among the 33 countries in the region is challenging.

The article concludes with a stark observation that the US has been preoccupied with issues like illegal immigration and drug trafficking in Latin America, leaving little room for a more proactive engagement with the region’s development. Eric Farnsworth of the Council of the Americas argues that the US has lost significant ground to China due to its lack of economic engagement. Even though the US remains a preferred partner for many Latin American nations, the absence of a meaningful alternative to China means that US influence is being challenged.

With the prospect of a return to the White House by Donald Trump, who is expected to take a hard stance on China, the region might become a flashpoint in the broader geopolitical conflict. However, as the article points out, the US must offer a clear and attractive alternative to China’s growing influence if it hopes to regain ground.

By Vafa Guliyeva