The political legacy of former Peruvian President Alberto Fujimori is shaping the country’s current position between the United States and China, highlighting the challenges facing Washington’s efforts to reduce Beijing’s influence in Latin America.
Keiko Fujimori, Alberto Fujimori’s daughter, narrowly won last month’s presidential election in Peru and is expected to bring the Andean nation closer to Washington through market-oriented policies and a tough approach to crime. However, she has also indicated that she intends to preserve Peru’s economic relationship with China, rejecting what she described as automatic alignment with any global power and calling instead for a strategically balanced position between the United States and China.
Luis Miguel Castilla, a former Peruvian ambassador to Washington and former economy minister, said the position suggested that Fujimori would take a pragmatic approach. According to Castilla, maintaining balance between major powers has been a long-standing feature of Peru’s foreign policy.
The continuation of close ties with Beijing by a leader with strong connections to the United States demonstrates the difficulty of Washington’s effort under President Donald Trump to challenge China’s growing influence in Latin America, particularly in countries south of Colombia where Chinese economic engagement has expanded significantly.
China is currently Peru’s largest trading partner and a major investor in key sectors including mining, energy, and infrastructure. The foundation of that relationship was established during Alberto Fujimori’s presidency in the 1990s, when Peru was seeking foreign capital and China was looking for international partnerships.
Alberto Fujimori, the son of Japanese immigrants, took office in 1990 and pursued economic reforms aimed at stabilizing Peru’s economy and reconnecting the country with global financial markets. At the same time, China was seeking diplomatic partners after international criticism over the violent suppression of pro-democracy demonstrations in Tiananmen Square.
During his first decade in power, Fujimori made four visits to China and supported Peru’s participation in the Asia-Pacific Economic Cooperation forum, or APEC. His administration helped establish economic links that eventually allowed Beijing to overtake Washington as Peru’s largest trading partner two decades later.
Cynthia Sanborn, director of the Center for China and Asia-Pacific and professor at Universidad del Pacifico, said Fujimori’s legacy included opening Peru to stronger economic ties with Asia and China.
Chinese investment in Peru has continued to expand since the 1990s, reaching an estimated $30 billion, according to Sanborn. One of the most significant examples is the $1.3 billion Port of Chancay, constructed by Chinese state-owned COSCO Shipping Ports and inaugurated by Chinese President Xi Jinping in late 2024.
The port is designed to reduce shipping times between Peru and Shanghai by about ten days and support Peru’s ambition to become a Pacific logistics hub. It has also become a focal point in the broader competition between the United States and China in Latin America.
Washington views the project not only as an economic advantage for Beijing but also as a potential security concern because of the possibility that the facility could be used by the Chinese military. The issue has become a challenge for US efforts to strengthen its position in Peru.
US Ambassador Bernie Navarro arrived in Peru in February as Washington attempted to expand its influence, but quickly encountered political turmoil. At the time, then-President Jose Jeri was facing controversy over alleged secret meetings with Chinese business figures at a Chinese-Peruvian fusion restaurant in Lima. Navarro later posted a photo of himself sharing hamburgers with Jeri, captioning it “Changing the menu.”
The controversy eventually contributed to Jeri leaving office, becoming the third impeachment of a Peruvian president by lawmakers in five years. His successor later attempted to delay the purchase of F-16 fighter jets from US-based Lockheed Martin, a deal that had been under development for at least two years. The purchase eventually moved forward, partly after pressure from Fujimori’s political party.
Navarro acknowledged Washington’s difficulties in Peru, saying during an Atlantic Council virtual event that the United States was currently behind China in the country. He said the US had been distracted by other global priorities but aimed to close the gap by the end of his term.
Keiko Fujimori’s approach suggests Peru will continue seeking economic cooperation with both major powers rather than choosing one over the other. Her position reflects a broader vision of Peru as a Pacific-oriented economy that maintains access to Asian markets while strengthening ties with the United States.
“Peruvian cuisine is fusion,” Fujimori said in an interview with a local radio station, adding that Peru’s investment destination should be APEC, where the United States participates alongside Asian economies.
