Key Takeaways:
- China is expanding its influence in Peru to control critical minerals.
- Lima’s mayor, Rafael López Aliaga, has close ties to Chinese mining projects.
- China’s strategy focuses on local politics to secure resource access.
- The U.S. risks missing these subtle moves in the global competition.
China’s quest to dominate critical minerals and battery metals is a global effort, but it often starts at the local level. Beijing is quietly building influence in unexpected places, like Lima, Peru, to secure resources crucial for the energy transition. The city’s mayor, Rafael López Aliaga, is at the center of this strategy, blending politics and business to China’s advantage.
How China Operates
China’s approach to securing resources isn’t just about large deals. It involves building relationships at the local level, where decisions on mining and infrastructure are made. By fostering ties with local leaders, China gains access to critical minerals without drawing much attention. This strategy is part of China’s Belt and Road Initiative, which aims to connect nations through trade and infrastructure, often benefiting China the most.
Meet Rafael López Aliaga
López Aliaga, Lima’s mayor, has risen through Peru’s political ranks since 2007. He’s known for his business successes, including PeruRail, which transports copper from Chinese-owned mines. His achievements in rail projects align with his vision for economic growth, but his ties to China are less clear to the public.
López Aliaga’s Connection to China
One of Peru’s largest copper mines, Minera Las Bambas, is a key player in the copper industry. Although it appears Australian-owned, it’s actually majority-controlled by China Minmetals, a state-owned giant. López Aliaga co-founded PeruRail, which transports copper from this mine, generating millions in revenue. This indirect link means López Aliaga benefits from China’s mining activities, deepening his alignment with Chinese interests.
Why This Matters
China’s investments in Peru, over $1 billion since 2020, highlight its focus on securing critical minerals. Copper is vital for energy transition technologies, and China dominates its global market. By investing in Peru, China strengthens its control over copper supplies, enhancing its influence in global markets.
Risks for Peru and the U.S.
While Peru stands to gain economically, China’s involvement could undermine long-term opportunities. U.S. strategy often overlooks local-level influence, risking loss in the global race for critical minerals. The U.S. must recognize that competition with China isn’t just at the national level but also in local deals and partnerships.
Conclusion
China’s subtle approach in Peru shows how it gains resource control through local ties. As the U.S. competes, it must engage at all levels to avoid losing ground. The story of Lima highlights how global power shifts can start with local decisions, emphasizing the need for vigilance and strategic engagement.