Emerging Chinese Technology in Peru Raises Security Concerns

China is promoting the adoption of open source software in Latin America, whose code is often linked to technological standards defined by the Chinese government. Due to its low cost, this software is being implemented in strategic sectors in several countries, especially within the framework of the Belt and Road Initiative (BRI).

This digital expansion has turned Peru into a key laboratory for Chinese influence, with Beijing-made technology now in use in sensitive sectors such as ports, mining, and digital currencies. These initiatives not only strengthen China’s economic presence but also pose significant national security risks. According to Víctor Ruiz, founder of the SILIKN cybersecurity center in Mexico, the main risks include the potential loss of digital sovereignty, exposure to economic espionage, cyberattacks, and growing technological subordination.

Chancay Port: A security nexus

The Chancay Port in Peru, almost entirely owned by Chinese state-owned company COSCO Shipping, is a prime example of these security concerns. Its automated systems for logistics and container management rely entirely on Chinese-made artificial intelligence (AI) and software. While the software is technically open, its management, updates, and support remain in the hands of Chinese companies, creating a risk of technological dependence.

“There is a risk of technological dependency, as implementing these technologies requires advanced technical expertise, which could lead Peru to depend on Chinese companies for maintenance and updates, limiting its autonomy,” says Ruiz.

The port operates cranes from Shanghai Zhenhua Heavy Industries (ZPMC) and cargo scanners supplied by Nuctech. Both of which have come under scrutiny for security-related risks. The United States has already excluded Nuctech from federal contracts, and the European Union has launched an investigation in 2024 into ZPMC’s cranes for the presence of suspicious hardware that can be used for espionage.

Further complicating security, the integration of telecommunications within the port is based on infrastructure from Chinese companies such as Huawei and ZTE, both of which have been identified as posing threats to national security. “Systems integrated with telecommunications networks, such as those of Huawei, could facilitate unauthorized access to sensitive data, compromising cybersecurity,” says Ruiz.

Strategic data and economic sovereignty

China’s technological expansion extends to other sectors, raising further national security concerns about strategic data and economic sovereignty.

In the mining sector, a pilot project launched in 2024 at the Las Bambas copper mine in the Apurímac region is using AI to manage operations remotely from Lima. The mine is mostly controlled by Chinese companies MMG Limited and Guoxin International Investment.

“One of the main risks is the possibility that Chinese companies could collect strategic data on the country’s natural resources, which could jeopardize its economic sovereignty,” warns Ruiz. “Furthermore, the pursuit of economic efficiency could take precedence over environmental and social standards, increasing the likelihood of tensions with local communities, as has already happened in Las Bambas.”

In March, Peru launched a pilot project for the digital sol, its central bank digital currency (CBDC), in collaboration with Viettel Peru, a local subsidiary of the Vietnamese state-owned Viettel group, which has a long history of cooperation with Chinese government entities. The International Monetary Fund (IMF) has warned in a report about the dependence on external technology providers and the absence of independent audits of the currency’s source code and operating protocols.

“The possible involvement of a company linked to China could open the door to foreign influence in the design or infrastructure of the digital currency (CBDC), which would call into question the country’s monetary autonomy,” Ruiz said. “In addition to the risk of cyberattacks, technological dependence on foreign countries also poses a challenge to the long-term maintenance and independent operation of the system.”

The case of Peru illustrates a multifaceted national security challenge, where China’s digital expansion threatens a nation’s digital sovereignty, economic stability, and technological autonomy. According to Ruiz, to counter these threats, it is crucial for Peru to adopt a comprehensive strategic response. This involves not only strengthening regulations and diversifying technology partners through new alliances, but also making a long-term investment in local talent and a national AI strategy.

Did you like this article?

Saved articles

Saved articles are stored in this browser only. Clearing your browsing data removes them.