No safe harbor: The strategic risks of China's port projects in Latin America

Global Watch | 2025-10-06

China's growing influence over maritime ports in Latin America and the Caribbean (LAC) is reshaping the region's economic and geopolitical landscape.

Through investments, construction and operational control, Chinese firms have embedded themselves in critical infrastructure that connects the region's dynamic maritime economy.

While these projects bring commercial opportunities, they also pose significant strategic risks. From intelligence collection to supply chain leverage, China's involvement in LAC ports creates vulnerabilities that could undermine international interests and regional stability.

China's port investments in LAC are not just about trade, they are about influence. While Beijing is unlikely to establish overt naval bases near US shores in the near term, its control over port operations offers subtler advantages. Ports under Chinese influence can enable intelligence collection on US naval movements, provide privileged access to maritime logistics data and even disrupt operations during a crisis.

Recent conflicts have demonstrated how civilian infrastructure can be repurposed for covert military operations. For example, drones launched from shipping containers have been used in Ukraine and Iran for precision strikes. China's development of shipping container-based missile systems raises concerns that ports under its influence could facilitate the covert deployment of such capabilities.

Economic leverage and strategic vulnerabilities

Beyond military risks, China's control over ports gives it leverage over regional supply chains, allowing Beijing to rewire trade relationships and deepen its economic influence. Ports like Kingston in Jamaica and Manzanillo and Veracruz in Mexico are particularly high-risk due to their strategic locations and the extent of Chinese involvement.

The risk is not limited to direct ownership. Even ports where Chinese firms are involved in construction or equipment supply can create long-term dependencies. For instance, Chinese technology from firms like Huawei and ZTE has been installed in several ports, raising concerns about potential backdoors for intelligence gathering.

Of the 10 active LAC ports operated by Chinese firms, seven are managed by CK Hutchison, a Hong Kong-based company historically viewed as commercially driven. However, Beijing's tightening grip on Hong Kong and China's 2017 National Intelligence Law, which compels private firms to cooperate with state intelligence, have eroded assumptions about Hutchison's independence.

Hutchison's recent announcement that it would sell its 43 overseas ports, including all seven LAC terminals, to a US-led consortium could reduce China's foothold in the region. However, China's antitrust review of the deal and reports that state-owned Chinese firms are seeking to acquire stakes in these ports suggest Beijing is not ready to relinquish its influence.

Mitigating the risks

South American countries must act decisively to counterbalance China's growing influence in LAC ports. Supporting port buybacks and buyouts, such as the Hutchison sale, offers a market-driven way to dilute China's footprint.

Strengthening oversight and inspection protocols at key ports can reduce vulnerabilities, while quiet support to partner nations' port authorities can enhance resilience against surveillance and illicit activity.

China's port projects in Latin America and the Caribbean are more than commercial ventures, they are strategic footholds that could be leveraged in times of crisis.

The risks extend beyond military concerns to economic dependencies and geopolitical influence. Ensuring that LAC ports remain secure and independent is not just a regional priority, it is a global imperative. The time to act is now, before these harbors become gateways for strategic exploitation.