Leaders Warned of Risks in Growing Dependence on China

LIMA, July 4, 2024 – As the inauguration of the new Chancay port approaches, concerns are mounting among regional leaders regarding the implications of increasing reliance on Chinese investments. The port, located 70 kilometers north of Lima, has seen a significant investment of $1.3 billion from Cosco, a Chinese company, in partnership with local stakeholders. This development is emblematic of a broader trend in Latin America, where countries are increasingly turning to China for economic support. Critics argue that this growing dependence could undermine local economies, particularly in smaller dollarized nations like Peru, Cuba, and others facing economic challenges. The situation in Cuba is particularly dire, as the island grapples with severe shortages and a lack of innovative solutions, prompting a shift towards alliances with Russia and China. This shift raises questions about the long-term sustainability of such partnerships and their impact on national sovereignty. In Peru, the political landscape is equally tumultuous, with President Dina Boluarte managing to maintain her position despite a lack of control over key governmental functions. Lawmakers are reportedly dismantling institutions, further complicating the country’s ability to navigate its economic challenges and foreign dependencies. As the region stands on the brink of significant change, experts urge leaders to critically assess the risks associated with deepening ties to foreign powers, particularly in light of the potential economic and political ramifications.