Chinese President Xi Jinping recently launched a diplomatic visit to South America, marking the start with the opening of a major port in Peru, a $1.3 billion project funded by China.
This deep-water port, located in Chancay, 80 kilometers north of Lima, is part of China’s larger effort to boost trade and influence in Latin America.
Xi’s visit also includes participation in the APEC summit in Lima and the G20 summit in Rio de Janeiro next week, along with a state visit to Brazil.
The Chancay port, a 15-berth facility, is seen as a significant step in China’s Belt and Road Initiative, which aims to create new trade routes between China and other parts of the world.
Xi hopes this project will help connect China to Latin America and enhance trade with countries like Peru and Brazil.
According to Xi, the Chancay port could generate $4.5 billion annually, create over 8,000 jobs, and reduce shipping costs by 20%. The port will be managed by China’s Cosco Shipping Ports.
The port’s opening is especially important for China as it looks to strengthen its access to Brazil, where a new $3.5 billion rail project is planned to connect Brazilian exports like soybeans and iron ore to Chancay.
This will help make it easier and cheaper for Chinese companies to import resources from Brazil.
This move is part of China’s strategy to tap into Latin America’s resources while navigating trade tensions with Europe and potential tariffs from the U.S.
Xi’s visit has also brought several Chinese business leaders, including those from Chinalco, which operates a copper mine in Peru.
The Chancay port will improve shipping efficiency, saving time and reducing costs by handling larger vessels directly, without the need for intermediary stops.
However, the port’s development has raised concerns in the U.S. Some fear it could be used for military purposes or intelligence gathering.
This reflects a broader shift, as China has surpassed the U.S. to become the largest trading partner for countries like Peru.
Despite these concerns, China has denied any military intentions, stating the project is purely for economic growth.
This port is just one part of China’s growing influence in Latin America, which is shifting the balance of power in the region.
Reuters reports that while some countries embrace the economic benefits, others remain cautious about the geopolitical implications.
https://www.reuters.com/world/chinas-xi-arrives-lima-apec-open-pacific-megaport-2024-11-14