A court in Peru has ordered the government to monitor a Chinese-owned port close to Lima, supporting US efforts to limit China's influence in the area.
This ruling reverses a decision made in January which stated that the Chancay port was not subject to some oversight by Peru's infrastructure regulator, Ositran.
Chancay is a privately-owned port managed by COSCO Shipping Ports from China, and it was built to reduce shipping times between Latin America and Asia. However, as the US focused more on the region, it became a key point in the growing tension between Washington and Beijing.
The earlier ruling raised concerns in the Donald Trump administration, which stated that it would harm Peru's sovereignty. Ositran also criticized this ruling, saying it could leave users of the port unprotected.
The US State Department’s Bureau of Western Hemisphere Affairs cautioned last February on social media, saying, "Let this be a cautionary tale for the region and the world: cheap Chinese money costs sovereignty."
US Ambassador to Peru, Bernie Navarro, praised the recent ruling on social media. He had visited Chancay the month before to donate two scanners to help improve the work of Peru's customs agency.
The $1.3 billion port was opened by Chinese President Xi Jinping in 2024. China is Peru's largest trading partner, followed by the US.
The new ruling acknowledged that while Chancay is privately owned, it serves public purposes. Thus, Ositran has the authority to regulate, supervise, inspect, and sanction operators according to Peruvian law, as stated in their announcement.
There is still a possibility of appealing this decision. COSCO Shipping Ports has yet to comment on the ruling.
Earlier this week, both Navarro and Secretary of State Marco Rubio congratulated conservative Keiko Fujimori on her presidential election win, expressing the Trump administration's desire to strengthen cooperation on regional security and trade.