CHANCAY, (14 June 2024) — China is advancing the construction of a significant deep-water megaport on the Pacific coast of Peru, a move that analysts believe could strain its already complex relationship with the United States. The project, spearheaded by the Chinese shipping giant COSCO, marks a major development in China's global infrastructure ambitions.

According to The Wall Street Journal, the megaport, with an estimated construction cost of approximately $350 million, is the first of its kind on the Pacific coast of South America. The port is being built in waters about 60 feet deep, making it capable of accommodating large vessels and increasing the region's shipping capacity.

The construction of this megaport is expected to significantly enhance trade relations between Asian and South American countries. It is anticipated that the new facility will boost Chinese exports to the region, particularly electric vehicles and other high-demand products.

Analysts suggest that the completion of this port could exacerbate tensions between China and the United States. The United States has expressed concern over China's growing influence in Latin America, viewing it as part of China's broader strategy to expand its geopolitical and economic footprint.

Chinese President Xi Jinping is expected to inaugurate the port later this year, underscoring the project's importance to China's Belt and Road Initiative (BRI). The port's strategic location and capabilities are likely to play a crucial role in future trade dynamics and regional economic integration.

The construction of the deep-water megaport in Peru represents a significant milestone in China's global infrastructure projects. While it promises to enhance trade between Asia and South America, it also has the potential to heighten geopolitical tensions with the United States. The global community will be watching closely as this project progresses and its broader implications unfold.