Chinese Lenders Express Concerns Over $1.3 Billion Peru Port Investment

Chinese Lenders Worry About $1.3 Billion Peru Port Investment

Chinese lenders are expressing worry about the future investments at a $1.3 billion port in Peru, which is set to open this year. The Peruvian government is making efforts to annul a deal that gave exclusive operating rights of the new Chancay Port to the Chinese state-owned company Cosco Shipping, citing legal concerns.

Key Takeaways:

• Chinese lenders are concerned about future investments at the $1.3 billion port in Peru.
• The Peruvian government is attempting to revoke the exclusive operating rights granted to Chinese company Cosco Shipping.
• Peru argues that it did not have the legal authority to provide the new facility with the same treatment as other major Peruvian ports.

Analysis:

The concerns raised by Chinese lenders and the Peruvian government's attempt to revoke the deal could potentially lead to legal disputes and diplomatic tensions between the two countries. This situation may also have repercussions on future investments and trade agreements between China and Peru.

Do You Know?

• Cosco Shipping is a major state-owned Chinese company that operates one of the world's largest shipping fleets.
• The Chancay Port project in Peru is a key part of China's Belt and Road Initiative, a global infrastructure development strategy.