Nicaragua gives Chinese firm contract to build larger alternative to Panama Canal.
The project will reinforce China's growing influence on global trade and weaken US dominance over a key shipping route.
Nicaragua has awarded a Chinese company a 100-year concession to build an alternative to the Panama Canal, in a step that looks set to have profound geopolitical ramifications.
The president of the country's national assembly, Rene Nuñez, announced the $40bn (£26bn) project, which will reinforce Beijing's growing influence on global trade and weaken US dominance over the key shipping route between the Pacific and Atlantic oceans.
Nicaragua's president, Daniel Ortega, said recently that the new channel would be built through the waters of Lake Nicaragua.
The new route will be a higher-capacity alternative to the 99-year-old Panama Canal, which is currently being widened at the cost of $5.2bn.
Last year, the Nicaraguan government noted that the new canal should be able to allow passage for mega-container ships with a dead weight of up to 250,000 tonnes. This is more than double the size of the vessels that will be able to pass through the Panama Canal after its expansion, it said.
According to a bill submitted to congress last year, Nicaragua's canal will be 22 metres deep and 286 km (178 miles) long - bigger than Panama and Suez in all dimensions.