Port of Power: Peru’s Chancay Port and the Geopolitics of Infrastructure in the U.S.-China Rivalry

executive summary: This essay investigates the geopolitical and economic implications of China’s investment in Peru’s Chancay Port in the context of the U.S.-China strategic rivalry in Latin America. main argumentChina’s development of Chancay Port in Peru represents a critical juncture in infrastructure diplomacy, exposing three key challenges for the U.S.: (1) growing risks of economic coercion enabled by rapid Chinese investment, (2) the absence of credible development alternatives, and (3) a misalignment in U.S.-Peru policy narratives. The port is emblematic of how China is reshaping global logistics and mineral trade networks. Drawing on ten expert interviews, this policy essay highlights potential pathways for a U.S. response. To respond effectively, the U.S. must adopt a more comprehensive strategy that focuses on strengthening the economic partnership, building institutional capacity, and employing effective communication strategies. policy implications • If Chinese investment in ports like Chancay accelerates without matched U.S. engagement, then China will increasingly shape the rules and routes of global logistics and mineral trade in the Western Hemisphere. • If the U.S. wants to counter China’s growing influence in Latin America, then it must prioritize infrastructure investment and regulatory capacity building, especially in sectors tied to critical minerals and port governance. • Framing Chinese investment primarily as a threat undermines U.S. credibility unless it is accompanied by concrete alternatives that address Peru’s economic development needs.