America Sinks, China Sails Ahead
America currently dominates global trade; it exports trillions of dollars worth of goods and boasts the world’s largest GDP. Yet, will America be pushed to the side as burgeoning nations seek to create new trade routes to circumvent the nation? Recent elect Donald Trump’s promise of a 60% tariff on Chinese goods may encourage China to strategically cut the US out of its trade. This month, Peru revealed a new “mega-port” in Chancay created by a 1.3 billion dollar investment from China. During the port's inauguration, Chinese President Xi Jinping identified it as part of the Belt and Road Initiative, calling it the start of a “21st century maritime Silk Road.” This port would allow China to access resources throughout South America like Peruvian blueberries, Brazilian soybeans, and Chilean copper. Before this construction, Peru’s exports to Asia had to be shipped through Central or North America. Now, the phrase “From Chancay to Shanghai” is well-known throughout the locals.
The Chancay port will drastically cut down shipping times by almost a week while also allowing for larger ships, a growing concern for some in the US military. General Laura Richardson calls the area a “future multi-domain access… [with] strategic naval chokepoints” and potentially part of China’s ‘long game.’ Her comments reflect a fear that the Chinese Navy will use the port for intelligence collection or to dock larger vessels like Chinese warships. In response, a Chinese state-backed news source, the Global Times, called these concerns ‘smears’ and said the port was “by no means a tool for geopolitical competition.”
The port has also been an opportunity for China to display its green technology and environmentally friendly pursuits. The Chancay Port will be a ‘green,’ low-carbon, modern smart port that already has electric container trucks directed by autonomous driving technology. This heavily funded, modern technology stands in harsh contrast to the regional fishing town where a third of the residents do not have running water. One fisherman, age 78, said “Our fishing spots no longer exist here. They destroyed them.” While Xi Jinping has promised 4.5 billion in annual revenues and 8,000 ‘direct’ jobs, it is unclear if this would truly benefit the local population.
Despite Chinese media’s attempts to allay US suspicion, the Chancay port represents a piece in the puzzle of China’s bid towards global domination. China will have greater supplies of South American heavy metals like iron and copper, quicker access to the Americas, and a larger port to tactically harbor warships. These factors should not be ignored and should be analyzed in light of China’s movements towards other precious resources, such as the Congo’s cobalt supply (see “Congo's Conflict, Cobalt and ... China?”). The US must invest in diplomatic relations in South America and make efforts to stay competitive in global trade markets or risk being cast away by more calculated nations.