Will Peru’s Chancay Port be the next ‘Panama moment’ for China?

The Chinese-invested facility is a flagship belt and road project in Latin America, a region the US sees as its backyard

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Chancay Port in Peru is expected to become a hub of global trade. Photo: Xinhua

Published: 10:00pm, 13 Oct 2025Updated: 11:57pm, 13 Oct 2025

Observers are optimistic that China and Peru will be able to avoid a “Panama moment” over the joint Chancay Port project, despite further political turmoil in the Latin American country.

Dina Boluarte’s presidency came to an end after less than three years last week with a landslide 122-0 impeachment vote in the legislature, following public discontent over her handling of security and corruption scandals.

Jose Jeri, former president of the Congress, will take over as interim president until a general election is held in six months but there have been concerns that the turbulence could be an opening for Washington to exert pressure on the region.

In Latin America, Peru is the second-biggest recipient of Chinese investment and China’s fourth-largest trading partner.

Chancay Port is a flagship project of Chinese investment.

The US$3.5 billion deep-water facility north of Lima that is built and operated by China’s state-owned Cosco Shipping and is part of the Belt and Road Initiative, Beijing’s plan to grow global trade.

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