Two Chinese-owned companies, Globe Seaweed International S.A.C. and Algas Sudamérica S.A.C., have transformed the Peruvian coast into the epicenter of a multimillion-dollar macroalgae trade to Asia, operating outside the bounds of national law.
According to a September 2025 investigation by Mongabay Latam, both companies extract and export thousands of tons of these algae without the required industrial licenses.
This operation combines illegal harvesting practices, “environmental laundering,” and a complex regulatory environment that creates a loophole of impunity in the export of a critical resource for the pharmaceutical, cosmetics, fertilizer, and nutritional supplement industries.
The mechanism of “environmental laundering”
The “laundering” of macroalgae occurs when transporters mix illegally harvested seaweed with legally collected resources on beaches. Peruvian daily El Comercio reported that certain fishing associations are complicit in this scheme, renting their certificates of origin to validate illicit shipments, thereby masking the true origin of the resources.
“It’s a strategy that has been repeated many times throughout Peru’s history: China takes advantage of the resources of a developing country like Peru, as has happened with fishing resources, mining and timber, guano, and rubber,” Antony Apeño, a researcher and marine biologist with Peruvian nongovernmental organization CooperAcción, told Diálogo. “China has set its sights on Peru as a source of resource extraction, clearly supported by the recent construction of the Chancay megaport, part of its Belt and Road strategy.”
Chinese dominance and regulatory challenges
Between January and September 2025, Peru exported more than 25,000 tons of macroalgae, of which 96 percent was destined for China. Agrodata Perú reported Globe Seaweed International sales of $3.4 million, while Algas Sudamérica reached nearly $3 million.
This voracious demand has placed severe stress on marine resources, particularly in the Ica region, where both Chinese companies operate. While technically private, these entities operate within China’s system of civil-military fusion and strategic resource acquisition, meaning their operations inherently serve the long-term industrial and geopolitical interests of the Chinese Communist Party (CCP). They purchase seaweed from collectors and artisanal fishermen. This practice highlights the difficulty of ensuring regulatory compliance across the supply chain and certifying the legal origin of the resources. This scheme fuels unregulated extraction practices that are potentially devastating for the ecosystem, Peruvian news site Eco Televisión reported.
The law and its local impact
Peruvian regulations — including the Marine Macroalgae Fishing Management Regulations (ROPMM) and Ministerial Resolution 264-2009-PRODUCE — establish that in the departments of Ica, Arequipa, Moquegua, and Tacna, only the manual collection of seaweed stranded by natural sea action is permitted.
However, the reality is far from the law. Extraction with underwater crowbars or blades, including mechanical ones, is common practice, and enforcement across the vast coastal areas presents a significant logistical challenge.
“In recent years, Chinese companies have set their sights on Peru, and unfortunately they have begun to engage in illegal economic activities, including illegal fishing for giant squid, the sale of shark fins, the sale of sea cucumbers, and currently, the trade in macroalgae,” says Apeño. He also warns of the negative impact of these activities on artisanal fishing and hydrobiological resources, which are vital to coastal communities.
Lenient penalties and regulatory gaps
Both companies have a history of malpractice. Algas Sudamérica was fined a mere $776 in July 2025 for receiving and processing shipments without proving their legal origin, a recurring offense since 2022.
Globe Seaweed International, for its part, has operated without valid permits and accumulated fines in 2024 and 2025 for transporting macroalgae without a certificate of origin. In 2023, the company received an $8,000 fine, which was reduced by half due to legal benefits, Infobae reported.
“Only what is stranded may be collected; however, it is known that illegal fishermen enter and cut the seaweed irregularly, waiting for it to wash ashore and then collecting it,” says Apeño. “Not only do they take advantage of legal loopholes, they also capitalize on the inaction of regulatory bodies to make an impact without receiving any penalties or only mild penalties.”
Environmental and social consequences
The uncontrolled extraction of macroalgae has generated conflicts between fishermen’s associations, at times escalating into violent clashes over control of the beaches, according to the Andrés Bello Foundation. This creates a security vacuum that destabilizes coastal governance and facilitates further illicit activity.
While macroalgae continues to be shipped by the ton to Asia, the impunity surrounding this trade today not only erodes marine ecosystems but also the country’s sovereignty over its own resources. Ultimately, the Peruvian sea is paying the price for a model that promises foreign investment but exacts a hidden toll of ceded national control.
