I'm John Batsu with Professor Avenels of the U.S. Army War College.

Reuters reporting from Lima, Peru.

The Chinese state-owned company at the center of a dispute over operations of a

mega port, it is building on Peru's Pacific coast insisted on terms agreed with the government as some local

officials have sought to backtrack on the deal. Backtrack.

Hong Kong-based Costco shipping ports will defend its legal rights to provide services as the exclusive

operator of the Deepwater Chancay Port Terminal under quote terms that were agreed at the beginning of the investment.

This is witty professor because my general understanding is that contracts with Chinese enterprises are good that night, but the next morning you start to renegotiate.

So Peru is up against some really hardball characters.

How's it doing?

It's a great story, John, and as you pointed to, I think this really alludes to a broader pattern as Latin American other parts of the world and engage with China.

And it's not necessarily nefarious,

but recognizing, first of all, that Chinese companies,

and with the backing of the Chinese government

are very good at negotiating their own benefit.

They're consummate bureaucrats.

They're passionate about the use of contracts.

For example, when we take a look at Argentina,

you see that contracts involving the hydroelectric dams in Santa Cruz or even the space station

where the Chinese in Argentina got a 50-year lease and subsequent Argentine governments

have had a difficulty in getting out of the terms of those contracts.

And so in Peru it's a similar thing where you had previous governments and the hope of benefits.

...