China’s Expanding Influence in Peru: A Comprehensive Analysis of…

The article explores the expanding influence of China in Peru, particularly through the Chancay Multipurpose Port, owned by COSCO. Experts warn about the implications of such investments on Peru’s sovereignty and national security. Concerns about media manipulation and corruption related to Chinese companies are also highlighted, pointing to a troubling trend of self-censorship and dependence on Chinese economic interests that could undermine Peru’s autonomy.

In November 2024, Peru’s relationship with the People’s Republic of China (PRC) shifted significantly following the inauguration of the Chancay Multipurpose Port Terminal. This project, predominantly owned by the Chinese state-controlled Cosco Ocean Shipping Company (COSCO), was heralded as a transformative milestone for Peru’s economy. However, controversy ensued as Peru granted COSCO exclusive operating rights for three decades, leading journalist Agustín Barletti to state that the port serves China rather than Peru.

This port represents a key element in the PRC’s strategy to dominate strategic sectors in Latin America. Leland Lazarus, an expert on national security, highlighted that China’s control of 70 percent of Peru’s copper exports positions it strategically within global supply chains essential for technology. In return, China is expected to inundate the region with low-cost green technologies, strengthening its regional market dominance while outcompeting local and foreign firms.

Concerns about security and espionage have also arisen. An investigation by The Wall Street Journal disclosed that cranes manufactured by the Chinese firm ZPMC, now in use at the Chancay Port, contain remote access technology that may enable Beijing to control operations, posing risks to national security. Barletti noted that these cranes can only be obtained from ZPMC, thus benefiting China’s own industry.

China’s influence extends beyond trade to crucial energy sectors in Peru. Currently, all electricity distribution in Lima is controlled by Chinese state firms, which are securing interests in strategic hydroelectric projects. This increasing penetration into vital industries such as energy and mining could impede Peru’s sovereignty and economic stability, as addressed in previous reports on this ongoing issue.

The PRC has effectively consolidated its influence in Peru, partly through an economic opening that favored foreign investment. Juan Pablo Cardenal, a journalist with insights from the PRC, noted a troubling consensus in Peru against opposing China. This silence extends even to media coverage, where criticism of Chinese interventions is scarce, undermining Peru’s ability to draw lines against PRC encroachments.

This media silence can be attributed to PRC strategies that encourage favorable depictions of its investments. Peruvian journalist Paolo Benza remarked that negative consequences of Chinese influence are rarely addressed, and when mentioned, they are diluted. A notable example includes the partnership between the Peruvian state news agency Andina and China’s Xinhua, which produces content with minimal scrutiny of Chinese actions.

Further entrenching its influence, China inked a cooperation agreement with Peru’s National Institute of Radio and Television, signaling an intent to bolster technological collaboration and media content sharing. This relationship has raised concerns that it aligns closely with the interests of the Chinese Communist Party. Benza criticized La República for aligning too closely with Chinese state propaganda through a similar agreement.

Moreover, the PRC employs tactics beyond media agreements to silence dissent. Freedom House has reported instances where the Chinese government subsidizes journalist trips to China, conditioning them to propagate favorable narratives post-visit. Cardenal mentioned this soft power alongside coercive measures, such as censorship of critical works by Peruvian authors in China.

The combination of soft power and coercive tactics has led to self-censorship in Peruvian media. Evidence reveals that reports on controversial projects, like the Port of Chancay, seldom highlight geopolitical risks, focusing instead on social or environmental angles. This environment has allowed Chinese interests to flourish largely unchallenged.

Additionally, there are serious allegations of corruption tied to Chinese investments in Peru, which have not received adequate media coverage. Cardenal pointed out that the opacity in China’s state-run companies allows them to operate without oversight, unlike Western firms. Instances of corporate espionage, such as the Tarot Club scandal, illustrate how Chinese companies have leveraged illegal practices to secure lucrative government contracts in Peru.

Other scandals include the Altiplano Hospital Consortium, which benefited from insider information obtained through espionage, allowing it to win significant tenders. Despite lawful protests, the consortium has continued to operate while facing numerous project delays and compliance issues, showcasing the lack of accountability for foreign entities in Peru.

The PRC’s blend of trade agreements and strategic investments has bolstered its position in Peru, creating a narrative that frames Chinese engagement as vital for Peru’s economic advancement. Yet this growing influence brings about substantial risks of dependency, potentially compromising Peru’s autonomy and sovereignty in global affairs. Barletti cautioned that the facade of economic progress obscures underlying geopolitical strategies that limit Peru’s decision-making power.

In light of these trends, questions arise regarding the lengths to which China will extend its influence in Peru and what steps Peru will undertake to safeguard its strategic interests. Cardenal urged Peru to differentiate between rhetoric and reality, advocating for increased accountability from Chinese firms while assessing the geopolitical threats posed by Chinese involvement in critical sectors.

The investigation exposes the complexities of China’s growing influence in Peru, which extends from economic engagements to significant control over crucial sectors. It highlights risks associated with dependency on Chinese investments, including potential threats to national sovereignty and media integrity. Without proactive measures to mitigate these risks, Peru may find itself increasingly vulnerable to influences that challenge its autonomy and institutional integrity.

Original Source: dialogo-americas.com