The US says Peru could lose its sovereignty to China, Beijing strongly refutes

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 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 yesterday 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.