China's Debt Trap: Peru Loses Control of Megaport to Beijing

• Peru's Chancay megaport, built with Chinese investment, has fallen under China's control, exposing Beijing's debt-trap diplomacy.
• A Peruvian court order prevents the government from interfering in the port's operation, maintenance, or supervision, effectively ceding control to China's Cosco.
• The 445-acre port, developed by China's state-owned Cosco with a $1.3 billion investment, was initially touted as a major hub connecting South America to Asia.
• The U.S. has warned that Peru's situation is a global warning, stating that cheap Chinese money ultimately costs a nation its sovereignty.
• Experts highlight China's strategy: provide loans for strategically important projects, use Chinese companies for execution, and then seize control when countries cannot repay or disputes arise.