From Port to Digital Hub: The Chancay-Shanghai Project and the Reconfiguration of Peru's Digital Sovereignty.

Submarine cable infrastructure forms the backbone of the global digital economy, carrying more than 95% of international data traffic. Historically, this network has been dominated by Western actors and its routes have converged on U.S. territory. However, the Chancay-Shanghai cable project, which directly connects the Peruvian port of Chancay with the Chinese megalopolis of Shanghai, represents a direct challenge to this paradigm, embodying the materialization of the Digital Silk Road and the intensification of the technological rivalry between China and the United States.

From a technical perspective, the project is highly viable. Submarine cable technology is mature, and the route, although complex due to the seismic activity of the Pacific, is manageable for experienced consortia such as the one led by Huawei Marine. Economically, the investment, estimated at up to US$1,800 million, is backed by Chinese capital and the participation of the global operator Telefónica through Telxius. The profitability is underpinned by the unmet demand for bandwidth and the drastic reduction in latency—of approximately 60%—for traffic between South America and Asia, a critical factor for cloud computing, finance, and telecommunications services.

For the People's Republic of China, the Chancay-Shanghai cable is a strategic component of its "Digital Silk Road" initiative. Its objective transcends the commercial; it seeks to create alternative and sovereign data infrastructures that bypass U.S.-controlled nodes, reducing vulnerability to potential disruptions or surveillance. By controlling a critical channel of communication, China increases its structural influence over South America, fostering an asymmetrical interdependence where digital infrastructure falls under its sphere of influence.

The United States perceives this project through the lens of national security. The participation of a government's ability to make decisions freely Chinese companies, subject to the Chinese National Intelligence Law, generates well-founded fears of espionage, interruption of services or clandestine access to data. The U.S. response has translated into intense pressure diplomacy, warning Peru and other regional allies about the risks of allowing Beijing to control critical infrastructure, in an effort to contain Chinese technological expansion in its traditional hemisphere of influence.

For Peru, the project presents a dichotomy. On the one hand, it offers the historic opportunity to position itself as the digital hub of South America, attracting investment, fostering innovation and improving its connectivity. On the other hand, it faces the sovereignty dilemma of having to balance this economic gain with the risk of alienating its main strategic partner, the United States, and generating a new technological dependence on China. Lima's diplomatic skill will be tested to navigate these waters without ceding decisional sovereignty or the government's ability to make decisions freely.

The technical consortium reflects the dual nature of the project. It is led by China's Huawei Marine (HMN Tech) and state-owned China Telecom, central players in Beijing's industrial policy. The inclusion of the Spanish Telxius (owned by Telefónica) operates as a legitimation mechanism, trying to instill trust and global experience. However, this involvement does not completely dispel security concerns, which focus on potential access to the source code and network management points.

Cable will reconfigure South America's digital geography. Countries such as Brazil, Chile, and Argentina will benefit from lower latency, but they are also closely watching the precedent set by Peru. The bill intensifies competition for regional leadership in digital services and could incentivize other countries to pursue similar agreements with China, fracturing the traditional hemispheric consensus and offering Beijing greater room for political and economic maneuver.

The final implementation of the project is contingent on the creation of a robust regulatory framework in Peru. The Peruvian government is under pressure to develop specific legislation for submarine cables that includes strict cybersecurity clauses, international audits, and guarantees on the inviolability of data. The form that this regulation takes will be a thermometer of the success of U.S. pressure and Peruvian autonomy.

The Chancay-Shanghai submarine cable is a clear turning point. Its high technical and economic feasibility contrasts with the profound geopolitical challenges it embodies. It is a symptom of an international order in transition, where the struggle for technological supremacy and control of data flows defines the new global fault lines. The project symbolizes China's determination to build an alternative digital order and American resistance to allowing it.

The future of the cable will be determined by the evolution of the Sino-American rivalry and the ability of South American states to act cohesively. Future scenarios include its successful implementation as a triumph of Chinese diplomacy, an implementation strongly conditioned by security regulations, or even an indefinite delay due to geopolitical pressures. In any case, Chancay-Shanghai has shown that in the 21st century, digital infrastructure is, above all, an instrument of power.