Strategic CCP Threat in Chile
By
MG Paul E Vallely US Army (Ret)
The Chile Deep Port Project
U.S. National Security Benefits of Supporting the Chile Project
February 22, 2025
Donald Trump has begun his second term as president by ramping up pressure on Panama – threatening to “take back” the Panama Canal and accusing the country of ceding control of the critical waterway to a US rival: China. “Above all, China is operating the Panama Canal. And we did not give it to China. We gave it to Panama, and we’re taking it back,” Trump claimed in his inaugural speech last month. China controls the canal, which is run by an independent authority appointed by Panama’s government. Beijing has repeatedly denied that it has interfered in canal operations. But the US concern comes as the Trump White House seeks to shore up national security, especially in its own neighborhood, and win an economic competition with China. At the heart of Trump’s contentions are a Hong Kong-based company that operates two key ports at either end of the 50-mile-long waterway – and broader concerns about Beijing’s expanding influence in a region of the world where the US has long been the dominant power. Panama’s President José Raúl Mulino has said Panama’s sovereignty over the canal was not up for debate, but the country has made other concessions to US pressure. Following a meeting with top US diplomat Marco Rubio last Sunday, Mulino said Panama would exit China’s Belt and Road infrastructure drive – a blow for Beijing, which had celebrated Panama as the first country in Latin America to join the program.
But now we have a further threat south of the Panama Canal on the west Coast of Chile. The threat is a 850 square miles of coastal enclave that the CCP is pursuing for a new port as part of their belt road initiative (BRI) into and across South America. For now, an American firm has control over this property and an agreement with the government of Chili to develop this property into a US-Chile controlled port with a follow-on global distribution airport and a further option to build a spaceport.
China’s Belt and Road Initiative underscores the urgent need for U.S. action.
Through the Belt Road Initiative (BRI), China has secured control of 40 ports across 34 countries and invested heavily in Latin America, including Chile." TO THIS: China’s Belt and Road Initiative underscores the urgent need for U.S. action. Through BRI, China has secured control of over 40 ports and port projects in Latin America alone."
Overview
The site is situated in Chile’s III Region, is a unique natural deep-water port with 30-meter depth and strategic access to two efficient low-gradient mountain passes. Its development offers critical advantages for U.S. interests in countering the growing influence of China, ensuring secure trade routes, energy independence, and geopolitical stability. Potentially in agreement with Chile could serve as a joint US Naval Base.
Key Benefits:
Strategic Trade Route: Provides a secure alternative to the Panama Canal, reducing shipping times and improving logistics for U.S. exports and imports.
Energy Security: Supports clean energy initiatives with LNG and hydrogen terminals, diversifying supply chains and reducing reliance on unstable regions.
Countering China’s Influence: Positions the U.S. to counteract China’s Belt and Road Initiative (BRI) efforts to dominate South American trade and resources.
Military and Emergency Logistics: Functions as a logistical hub for U.S. military and humanitarian operations in the Pacific.
The China Threat in Global Trade: China’s Belt and Road Initiative underscores the urgent need for U.S. action. Through BRI, China has secured control of 42 ports across 34 countries and invested heavily in Latin America, including Chile. These actions grant China unprecedented access to food, energy, and mineral supplies, directly challenging U.S. economic and strategic interests. The port will provide a vital counterbalance, ensuring the U.S. maintains influence in South America and access to critical trade routes.
Economic and Cost Efficiencies:
Facilitates access to South American agricultural and industrial production, reducing dependency on Chinese-dominated trade routes.
Integrated with bio-oceanic corridors, saving $2 billion in CAPEX due to natural geography.
Over $100 million invested; permits and approvals are in place.
Conclusion: Backing the port is essential to safeguarding U.S. national security and economic leadership in the Pacific. By developing this strategic port, the U.S. can counter China’s aggressive expansion, secure vital trade routes, and strengthen its geopolitical position in South America. The port in addition can build and operate an international distribution airport. Chinese companies have become increasingly caught in the crosshairs of Washington’s national security concerns.
President Trump and the US National Security team and the State Department and Marco Rubio.
This is a national security ALERT!
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