2023-10-03 19:30:23
China would have control of 100% of the electricity in Peru. – Infobae/Andina Composition Credit
The control that China is gaining over Peru’s critical infrastructure has raised alarm. According to a report revealed by The Financial Times, it indicates that “the Government of Peru is not sufficiently focused on analyzing the benefits and threats to the country” that would imply a greater delivery to the Beijing regime of these businesses that are fundamental for national development.
Although China’s presence in Latin America has been constant, with its companies purchasing port, energy and mining assets in the region in recent years, Beijing’s investment in Peru, along with its strategic position, has been a cause of concern not only for international experts and analysts.
The sale of Enel shares to the Chinese company CSGI is not yet fully concentrated. Credit Archyde.com/Flavio Lo Scalzo
As reported by Michael Stott and Joe Daniels in The Financial Times, even a person close to the Peruvian government has confirmed that these concerns exist and were communicated by the United States. “The main problem is that… Chinese capital has acquired electricity, mining and other companies. Geopolitically speaking, the concerns [de EE.UU.] “They would be justified,” he said.
In April 2023, Enel, the Italian company that handles much of the energy in Peru, announced that it had closed an asset purchase agreement with China Southern Power Grid Co. (CSGI) for nearly $3 billion. This treatment was rated negatively by the National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi), as it observed that there were “potential restrictive effects on competition.”
As is known, Luz del Sur is owned by the China Three Gorges Corporation group — it was sold in 2020. Now, with Enel being sold to China Southern Power Grid, with the purchase-sale contract still pending approval, “the People’s Republic of China would be controlling 100% of the Lima electricity distribution market,” as stated in April of this year. year the National Society of Industries (SNI). The country’s capital is now at the mercy of the will of the Chinese regime, which could leave a large part of the Peruvian population without electricity if any negotiations do not go as the Asian giant expects.
A US government official revealed that there would be concern about the Chinese presence in Peru. Credit AP Photo/Andrew Harnik
Although the control of electricity is one of the main concerns, to this is added one of the projects most promoted by the Peruvian Government: the Chancay megaport, a large-scale project that promises to turn Peru into the port hub of Latin America. .
As is known, Cosco, the Chinese state-owned transportation and logistics company, has a 60% stake in the megaport, while Volcan, the Peruvian mining company, has the rest. “It should be of great concern to the Peruvian government that the entire back-end infrastructure of the port of Chancay is under the control of a foreign nation,” the anonymous Washington official said.
Thus, the United States of America is focusing on this great project and the entry of Chinese capital to Peru, especially. On the part of the Peruvian government, there does not seem to be any major alarm about this. According to The Financial Times, the Minister of Transport and Communications, Raúl Pérez-Reyes, pointed out that Peru “is a sovereign country and establishes its international relations on that basis.”
Cosco Shipping Ports Chancay Peru SA invests approximately $1.3 billion in the megaport. In the second stage, an investment of $2.3 billion is contemplated. – MTC Credit
In August, the Peruvian ambassador to China, Marco Balarezo, highlighted the current good state of the bilateral relationship between Peru and China, highlighting the trade and investment ties between both nations. For his part, China’s ambassador to Peru, Song Yang, said that “China is betting that Chancay will become the Shanghai of Peru.”
There should be no problem in two nations commercially supporting each other for their development. However, there is concern about the Chinese strategy, in which Asian companies build “dual-use” ports, which are intended for cargo traffic, but which are large enough to be used by Beijing’s navy to resupply ships. of war.
But in addition to Chinese companies having participation in several ports in Latin America, they have also implemented 5G mobile networks, as well as space surveillance stations. Asked about this by the international media, Evan Ellis, professor of Latin American studies at the US Army War College, pointed out that China is seeking to remake the world for its own economic benefit and port infrastructure is part of achieving this.
The Chinese government strengthens its ties with different South American nations. – Credit Presidency of Chile/Archyde.com
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