China Boosts Peru Trade via Chancay Port as US Tariffs Redraw Latin America

In 2026, the US and China are clashing over supply chains, critical minerals, telecommunications and port control across Latin America. China's Chancay port in Peru has seen a 71 percent increase in container volume year-on-year, reaching 200,000 TEUs in the first half of 2026. However, COSCO, the Chinese company operating the port, has appealed to the Constitutional Court against Peru's courts restoring state oversight.

Washington is retaliating with tariff threats and efforts to draw Latin American exports away from China. The Chancay port, part of China's Belt and Road Initiative, is positioned to bypass US, Mexican and Panamanian ports, reducing shipping times from 35 to 45 days to around 23 days. The port, developed and operated by a joint venture controlled 60 percent by COSCO, received a total investment of around US$3.5 billion to US$3.6 billion.

As of mid-2026, COSCO Shipping Lines had launched three trans-Pacific trunk routes and five regional feeder services along South America's west coast. Despite COSCO's argument that the port was financed entirely with private capital, the Lima constitutional court ruled in February 2026 that the transport regulator Ositrán must supervise and sanction Chancay's operations.

However, the Second Constitutional Chamber overturned that decision in July 2026, restoring Ositrán's authority. COSCO has appealed to Peru's Constitutional Court, leaving the port's regulatory status pending. The Chinese government's involvement in Latin American infrastructure, including ports, lithium projects and telecom networks, positions the region at the center of US-China competition.