LIMA: As China and Peru launched South America’s first Beijing-funded port in Chancay, Peru, on Thursday, the United States called on Latin American nations to be vigilant.
The $3.5-billion complex, located 80 kilometers north of Lima, is meant to serve as a major hub for Chinese trade at a time the Asian giant is under threat of major tariff hikes after Trump reenters the White House for a second term.
The port was officially opened in a ceremony attended virtually by China's President Xi Jinping and Peruvian counterpart Dina Boluarte from Lima, where they will attend an Asia-Pacific Economic Cooperation (APEC) summit on Friday and Saturday.
Xi vowed in his speech to “promote connectivity” between China and South America.
Peru — one of Latin America’s fastest-growing economies over the past decade — is China’s fourth-largest Latin American trading partner, with bilateral flows of nearly $36 billion in 2023.
Amid the celebration, Brian Nichols, the top US diplomat for Latin America, spoke out. “We believe it is essential that countries across the hemisphere ensure that PRC economic activities respect local laws as well as safeguard human rights and environmental protections,” he said, referring to the People’s Republic of China.
Pointing to the long US relationship with Peru, Nichols said: “We’ll be focused on building those relations and making sure that Peruvians understand the complexities of dealing with some of their other investors going forward.”
He said that the United States has also recently provided support to Peru, including train donations to the city of Lima, space cooperation led by NASA and the donation of nine Black Hawk helicopters to help police battle transnational crime.
Dan Kritenbrink, the top US diplomat for East Asia, said that the United States came with an “affirmative agenda” and was not seeking to force countries to choose between rival powers.
“We do want to make sure that countries have choices and they were able to make them freely without coercion,” Kritenbrink told reporters.
The United States for two centuries has considered Latin America its sphere of interest, but it has faced increasing competition around the world, especially in the economic sphere, from China.
US policymakers often highlight debt associated by Chinese projects and China’s use of its own workers in mega-projects.
The port will allow South American nations to skirt ports in Mexico and the United States as they trade with Asia.
Xi is set to meet on Saturday in Lima with outgoing US President Biden in their likely final encounter before Donald Trump returns to the White House.
