Chinese President Xi arrives in Peru on his Latin American tour, aiming to expand Beijing’s global influence

Americas, Asia-Pacific, News November 16, 2024 , by IRIA No Comments

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Chinese President Xi Jinping arrived in the Peruvian capital on November 14, 2024, to start his nine-day diplomatic tour of Latin America. The trip, which includes stops in Peru and Brazil, signals China’s ambition to solidify itself as a key global power amid shifting geopolitical dynamics.

Xi’s visit began with the inauguration of the Chancay deep-water mega port in Peru, a $1.3 billion project financed by China. The port is located approximately 80 kilometers north of Lima and serves as a critical node in China’s Belt and Road Initiative (BRI).

“Chancay is the successful start of a 21st-century maritime Silk Road,” Xi declared during the ceremony. He expressed China’s willingness to collaborate with Peru in forging a maritime-land corridor that could link the Pacific Ocean to the Inca Trail, connecting South America to Asia in unprecedented ways.

Built by China’s Cosco Shipping Ports, the mega port features 15 berths and aims to transform Peru into a central hub for trade between Asia and South America. The first phase alone is expected to generate $4.5 billion in annual revenues and create over 8,000 direct jobs, significantly reducing logistical costs for Peru-China trade by 20%.

China and Peru maintain a robust trade relationship, particularly in the agricultural sector, with fruits playing a key role. In 2024, Peru’s fruit exports to China, including table grapes and avocados, have expanded, driven by updated phytosanitary protocols and improved logistics.

¡Hoy es un día histórico para el Perú! 🚢🇵🇪 Entró en operación el puerto de Chancay, que revolucionará el comercio con Asia. En el marco del #APECPerú2024, la inauguración de este puerto marca un hito en la economía del país, con rutas más rápidas y eficientes. pic.twitter.com/u2FLfeoh4K
— Ministerio de Transportes y Comunicaciones (@MTC_GobPeru) November 15, 2024

The new port is expected to streamline exports to China and other Asian markets, boosting Peru’s competitiveness. Blueberries, a rising star in Peru’s agro-exports, saw significant growth, with demand in China increasing alongside global consumer awareness of their health benefit.

China’s investment in Chancay is emblematic of its broader strategy to secure resources and trade routes in Latin America, a region traditionally within the sphere of U.S. influence. By accommodating the world’s largest ships, Chancay will eliminate the need for intermediary consolidation points, further enhancing trade efficiency between the two continents.

Summits and Meetings

Xi is set to attend two high-profile international summits during his visits. The Asia-Pacific Economic Cooperation (APEC) summit in Lima where he would engage with leaders from across the Pacific Rim to discuss trade liberalization and sustainable development.

In Brazil, Xi will participate in the Group of 20 (G20) summit and undertake a state visit to strengthen ties with the region’s largest economy. Analysts view these engagements as pivotal moments for China to present itself as a leader in global development and multilateralism, particularly as the U.S. potentially retreats from these roles under its incoming administration.

China’s economic footprint in Latin America has grown exponentially over the past decade. Beijing has become the largest trading partner of several countries in the region, including Peru.

*^{Chinese President Xi Jinping and Peruvian President Dina Boluarte observed the signing of the agreement during Xi’s visit to Lima, Peru on November 14, 2024. (Image Credit: X/@SpokespersonCHN)}*

In addition to the Chancay port, Chinese firms have heavily invested in sectors such as mining and agriculture. For instance, Chinalco, a state-owned enterprise, owns and operates the Toromocho copper mine in Peru, further solidifying China’s position as a key player in the extraction of raw materials.

While Chinese investments provide much-needed infrastructure and economic growth opportunities for the region, critics argue that they often come with strategic strings attached.