US Warns Peru it May Lose Sovereignty  02/12 06:08

   

   LIMA, Peru (AP) -- The Trump administration on Wednesday expressed concern 
that China was costing Peru its sovereignty in solidifying control over the 
South American nation's critical infrastructure, a blunt warning after a 
Peruvian court ruling restricted a local regulator's oversight of a 
Chinese-built mega port.

   The $1.3 billion deepwater port in Chancay, north of Peru's capital of Lima, 
has become a symbol of China's foothold in Latin America and a lightning rod 
for tensions with Washington.

   The U.S. State Department's Bureau of Western Hemisphere Affairs said on 
social media that it was "concerned about latest reports that Peru could be 
powerless to oversee Chancay, one of its largest ports, which is under the 
jurisdiction of predatory Chinese owners."

   It added: "We support Peru's sovereign right to oversee critical 
infrastructure in its own territory. Let this be a cautionary tale for the 
region and the world: cheap Chinese money costs sovereignty."

   The concern comes as the Trump administration seeks to assert dominance over 
the Western Hemisphere, where China has long built influence through massive 
loans and high trade volumes.

   The Chinese government on Thursday strongly rejected the U.S. comments.

   "China firmly opposes and strongly deplores the U.S.'s blatant 
rumor-mongering and smearing of Chancay port," said Foreign Ministry 
spokesperson Lin Jian at a daily briefing in Beijing.

   Chancay, along the Pacific coast, is part of Beijing's Belt and Road 
initiative, an infrastructure program that has seen Chinese state-owned banks 
offer sizable loans or financial guarantees to construct seaports, airports and 
highways, among other projects, across multiple continents.

   As Latin America's deepest port, Chancay is capable of berthing some of the 
world's largest cargo ships traveling between Asia and South America. China has 
been Peru's biggest trading partner for more than a decade now.

   China's state-owned shipping and logistics company Cosco, a majority 
shareholder in the port, dismissed the U.S. claims.

   In response to questions from The Associated Press, it said the court ruling 
"in no way involves aspects of sovereignty" and insisted that the port remains 
"under the jurisdiction, sovereignty and control of Peruvian authorities, 
subject to all Peruvian regulations."

   It added there were plenty of Peruvian authorities monitoring the port's 
activities, including police forces, environmental regulators and customs 
officials.

   The ruling issued Jan. 29 by a lower court judge orders Peruvian authorities 
to refrain from exercising "powers of regulation, supervision, oversight and 
sanction" over the port in Chancay.

   The regulator, Ositran, which has oversight over all of the country's other 
major ports, said it would appeal the decision, arguing that there was no 
reason to exempt Cosco Shipping from the agency's oversight.

   "(Cosco Shipping) would be the only company providing services to the public 
that could not be supervised," Vernica Zambrano, president of Ositran, told a 
local radio station Wednesday.

   Although it's privately owned, the Chancay Port covers 180 hectares (about 
445 acres) of Peruvian territory, Zambrano added, making it subject to 
government efforts to monitor and enforce compliance with local user protection 
standards.