China’s growing role in Peru’s strategic infrastructure is raising new questions about economic dependence, control of critical logistics networks, and Beijing’s expanding influence in South America.
In early 2026, the Peruvian government awarded Power Construction Corporation of China (POWERCHINA) a $420 million engineering, procurement, and construction contract to develop a 120-kilometer railway line, connecting the Port of Chancay, on Peru’s Pacific coast, with the regions of Junín, Huancavelica, and Pasco.
The project aims to improve the transport of mineral exports to Asian markets, particularly to China, while strengthening Peru’s international logistics network. According to Infobae, the initiative is expected to improve the competitiveness of Peruvian exports and also increase territorial connectivity within the country.
Analysts warn, however, that the growing presence of Chinese companies in strategic sectors of the Peruvian economy are deepening Beijing’s influence over key infrastructure and supply chains. Chinese firms operating in Peru, including Chinalco and the Raura mine, are expected to benefit more from the new railway corridor.
Crossing the Andes with Chinese technology
The Chancay–Sierra Central railway is designed to connect Peru’s coast with the central Andean regions, requiring major engineering works to cross the Andes mountain range. According to daily La República, the project will include tunnels, viaducts, and large-scale earthworks carried out by Chinese contractors.
The railway will primarily transport mining cargo, especially copper and other strategic minerals extracted from Peru’s central highlands. Before the project, much of this cargo reached the coast by road, with transportation times that could exceed 18 hours.
Argentine international analyst Luis Somoza told Diálogo that the infrastructure project reflects China’s broader effort to strengthen its commercial and logistics networks in Latin America. “Connecting Latin American cities and ports with Chinese ports is part of its strategy to move goods more easily and under its control, avoiding local regulations that could limit the flow of strategic resources such as minerals,” Somoza said.
Chancay’s strategic importance
The Port of Chancay, operated by Chinese state-owned company COSCO Shipping, is emerging as a major logistics hub for South America, designed to facilitate trade routes between the region and Asia.
As China expands its presence in Peru’s strategic infrastructure sector, analysts and policymakers have raised concerns over Beijing’s growing influence on regional trade corridors, logistics networks, and supply chains tied to South American exports.
U.S. Congresswoman María Elvira Salazar described Chancay as “the largest Chinese port in the hemisphere” and warned about the project’s potential dual-use capabilities, suggesting the infrastructure could support Chinese military operations in the region, Infobae reported. “This would allow Chinese submarines, aircraft carriers, and warships to operate from Peruvian territory,” Salazar said.
Expanding influence
According to Infobae, Chinese investment projects have increasingly shaped Peru’s economic and infrastructure landscape, reflecting Beijing’s growing regional footprint.
Somoza warned that Chinese infrastructure investments often impose unfavorable conditions on recipient countries, including limited transparency, the absence of open bidding processes, escalating costs, and the transfer of strategic resources into foreign hands. Peruvian newsite Altavoz reported in April that cumulative Chinese investment in Peru has reached $29 billion, positioning the country among the largest recipients of Chinese capital in Latin America.
Somoza stated that contracts with Chinese companies often prioritize Beijing’s interests, leaving host countries with fewer economic benefits and exposing them to significant sovereignty risks.
“Beijing’s ambition is not limited to controlling key economic sectors in Peru, but also seeks to extend its influence in sensitive areas such as security and military defense in the Southern Cone,” Somoza said. “China’s investments and interference in Peru’s affairs jeopardize Peruvian sovereignty because it effectively means accepting to be under the orbit of the Chinese Communist Party.”
The Chancay–Sierra Central railway project together with the expansion of Chinese infrastructure in Peru, reflects the growing strategic importance of logistics, ports, and mineral supply chains in the region. While these investments may bring economic opportunities and improved connectivity, analysts say they also raise broader questions about long-term sovereignty, control of strategic infrastructure, and geopolitical influence in South America.
