China is intensifying its presence in South America, with a strategy that goes beyond investment in mega-projects. By controlling key sectors such as mining, energy, and port infrastructure, Beijing is securing strategic resources and further inserting itself in the region. Its economic and geopolitical expansion follows the model applied in Africa, consolidating its influence and generating new diplomatic tensions.
Peru has become a key target for Beijing to have access to essential natural resources and reinforce its influence in South America.
“China is quietly expanding its influence in strategic sectors, which although tend to go unnoticed, are increasingly relevant on the geopolitical chessboard,” Juan Belikow, professor of International Relations at the University of Buenos Aires, Argentina, told Diálogo. “One example is control of supply chains, now considered the sixth domain of warfare.”
Dominion over trade routes, ports, and logistics hubs is part of China’s strategy. “China is not only securing its presence in critical infrastructure such as ports and energy networks but is also expanding its control over key technologies for global logistics, giving it significant influence in sectors essential for world stability,” Belikow said.
The current global context, Belikow argues, might favor Chinese expansion. While other regions focus their attention on other conflicts and internal crises, South America is becoming fertile ground for Beijing’s consolidation.
Port domination
China is seeking to consolidate its presence in South America with Peru’s Port of Corío, in Arequipa, planned as a key axis for global trade. If the mega-port of Chancay marked a first major advance, Corío could consolidate its port dominance.
This project, promoted by the Regional Government of Arequipa, involves an investment of over $7 billion and a capacity to process up to 100 million tons of cargo per year. With a depth of 28 meters, it will be able to receive larger ships than Chancay. According to construction online platform Perú Construye, several Chinese companies have expressed interest in its development.
“By tying this project to the Belt and Road Initiative, where China has prioritized investments in strategic infrastructure, the outlook becomes more worrisome,” Belikow said. “This control would not only allow it to manage the flow of goods in Peru, but also to influence global trade, with the capacity to disrupt key routes in the event of conflict.”
“China’s dumping, subsidizing its companies while its competitors face unequal conditions, not only reinforces its commercial expansion, but also shapes a geo-economic war. What’s worrisome is that many still do not perceive this strategy,” Belikow added.
Mining and energy under China’s control
China has “dangerously” increased its influence in the Peruvian economy. In the mining sector it controls more than 20 percent of the project portfolio. Among the most important are Pampa de Pongo, developed by Zhongrong Xinda Group, El Galeno, developed by China Minmetals Corporation, and the expansion of Toromocho by Chinalco. These investments guarantee the supply of raw materials for China, Argentine news site Infobae reported.
During the Asia-Pacific Economic Cooperation forum in November 2024, Peru and China signed a memorandum of understanding to promote more mining investment and strengthen technical and commercial cooperation in this sector, further deepening Chinese influence in the Peruvian economy, Infobae reported.
In the energy sector, China took control of important assets. In 2020, China Three Gorges Corporation bought Luz del Sur; and in 2024, a subsidiary of state-owned China Southern Power Grid International acquired Enel Distribución Perú and Enel X Perú. These transactions have allowed Beijing to consolidate its monopoly of electricity distribution in Lima and more than half of electricity distribution assets nationwide. According to Infobae, there is also the possibility that China will set up electric car assembly plants in the country.
“This economic colonialism, which many have become aware of too late, also has a profound impact on the automotive industry in the Andean region. Currently, 80 percent of the Peruvian vehicle fleet is of Chinese origin, and the same is true of buses,” said Belikow. “The Chinese presence in this sector is undeniable and reflects a strategy of economic occupation.”
Challenge for Latin America
Economic crises, lack of legal certainty, corruption, and constant changes in the rules of the game for Latin American governments facilitate China’s entry into the region. This is a cause for concern, as many of its investments are proceeding without audits or control mechanisms, Belikow said.
He also stressed that “reversing this process would be complex and costly, as it would affect acquired rights and legal stability. In many cases, these agreements are finalized through corruption and spurious contracts, deepening Latin America’s vulnerability.”
Faced with this scenario, the region must react and adopt more strategies, recognizing the need to curb Beijing’s influence in Latin America, Belikow concluded.
