The $3.5-billion complex, about 50 miles (80 kilometers) north of Lima, is meant to serve as a hub for Chinese trade as the country is under threat of major tariff hikes once Trump reenters the White House for a second term.
The port was officially opened in a ceremony overseen virtually by Xi and Peruvian counterpart Dina Boluarte from Lima, where they will attend an Asia-Pacific Economic Cooperation (APEC) summit on Friday and Saturday.
"China plays a major role in the growth of our economy," Boluarte said at the event, even as a US official warned Latin American nations should be vigilant on Chinese investment.
"We believe it is essential that countries across the hemisphere ensure that PRC (People's Republic of China) economic activities respect local laws as well as safeguard human rights and environmental protections," Brian Nichols, the top US diplomat for Latin America, said in Lima.
Xi, for his part, said the port would help "promote connectivity" between South America and China.
"We are witnessing... the birth of a new land-sea channel between Asia and Latin America in the new era," Xi said
US President Joe Biden also arrived Thursday to attend the APEC summit in Peru, which Nichols described as a "crucial ally."
- Belt and Road -
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.
Chancay port will also serve Chile, Colombia, Ecuador and other South American countries, allowing them to skirt ports in Mexico and the United States as they trade with Asia.
Chancay is the latest addition to a vast collection of railways, highways and other infrastructure projects built under China's massive Belt and Road Initiative to stimulate trade and boost Beijing's political clout.
Hong Kong-listed Cosco Shipping Ports, which owns 60 percent of the port, has a 30-year concession to operate the terminal and has forecast it will handle up to a million containers in its first year of operation.
Cosco Shipping Ports is a subsidiary of China's COSCO Shipping Corporation.
The port's maximum depth is 17.8 meters (58.4 feet), allowing it to handle the world's biggest container ships.
Chancay, a fishing town of some 50,000 inhabitants, was chosen for its strategic location in the heart of South America.
It is now expected to become a major hub for imports of Asian electronics, textiles and other consumer goods and for the export of minerals -- including lithium and copper.
Xi described the complex as South America's "first smart and green port."
Once completed, he said, it will reduce the transit between China and Peru by more than 10 days, and cut logistics costs by over 20 percent.
US urges vigilance on Chinese investment as Xi opens Peru port
Lima (AFP) Nov 15, 2024 -
The United States on Thursday called on Latin American nations to be vigilant of Chinese investment as President Xi Jinping was inaugurating a major port in Peru.
Xi, in Peru alongside US President Joe Biden for the APEC summit, was opening the first Chinese-funded port in South America, a $3.5 billion complex in Chancay north of Lima that is designed to be a regional trade hub.
"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," said Brian Nichols, the top US diplomat for Latin America, 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 Biden in their likely final encounter before Donald Trump returns to the White House.
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