Peru new balance between China and the US

Peru's new president, Keiko Fujimori, took office on July 28, marking the return of the Fujimorist political movement to power after 25 years. Fujimori, daughter of former dictator Alberto Fujimori, who ruled from 1990 to 2000, has promised increased security, economic growth, and improvements in healthcare and education. Her administration faces significant internal challenges, including high crime rates and public corruption, while also navigating a growing geopolitical rivalry with both the United States and China. The country’s strategic importance has surged in recent years, positioning it as a key battleground in the competition between Washington and Beijing for influence in Latin America. Fujimori has made enhancing national security her top priority, announcing plans to expand surveillance systems, establish nationwide command centers, increase police presence, and implement stricter measures against criminal organizations. Additionally, she has proposed constructing four major prisons. These measures have drawn criticism from experts such as Eliana Carlin, a political scientist at Peru’s Pontifical Catholic University, who expressed concern over human rights issues and the ideological underpinnings of these policies, which would place military courts in charge of law enforcement and armed forces. Beyond security, Fujimori has pledged to advance infrastructure projects, attract private investment, build new schools and hospitals, and modernize government operations through technology and artificial intelligence. However, the success of these initiatives will depend heavily on the financial flexibility available to the new administration. Peru continues to struggle with substantial deficits in infrastructure and public services, compounded by ongoing challenges such as high crime rates and the potential resurgence of the El Niño climate phenomenon, which could bring widespread flooding and droughts. In terms of foreign policy, Peru’s role in the global trade landscape has expanded significantly. The opening of the deep-water port of Chancay represents a major step forward in this regard. This $3.5 billion infrastructure project aims to reduce sea transport time between Peru and China from approximately 40 days to around 23 days once fully operational. Chancay is poised to become a critical gateway for South American trade with Asia, further embedding Peru into the complex dynamics of international commerce. China has emerged as Peru’s largest trading partner, with bilateral trade reaching over $40 billion in 2024 according to official figures. The United States follows closely behind with nearly $25 billion in trade volume. The expansion of Chancay underscores Peru’s increasing significance in the region, particularly as both superpowers seek to enhance their economic and political leverage. Michael Shifter, a Latin America expert at Georgetown University, notes that Peru stands at the center of the competition between Beijing and Washington. While China has played a crucial role in the country’s economy for many years, the United States is actively seeking to strengthen its influence. This dual engagement presents both opportunities and risks for Peru’s future direction. The nation’s ability to balance these competing interests will shape its trajectory in the coming years.