Chinese President Xi Jinping (L) and Peruvian President Dina Bolverte shake hands during a meeting at the Government Palace in Lima on Nov. 14, 2024, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit.
Ernesto Benavides | AFP | Getty Images
Beijing is strengthening economic ties in Latin America as it seeks to further boost trade and gain influence in the resource-rich region, experts told CNBC.
Chinese President Xi Jinping inaugurated the $3.5 billion last week. MegaportMajority-owned by China’s state-owned shipping company Cosco, the route to Peru creates a direct shipping lane between Shanghai and the Peruvian city of Chancay.
“China’s own economy is slowing down, and the standard government response to that is to try to get out of it,” said William Reinsch, chair of the School of International Business at the Center for Strategic and International Studies. Hoi said, referring to attention. Latin America.
“Among other things, that means looking at parts of the world that they haven’t yet penetrated on a large scale,” Reinsch said, adding that the Western Hemisphere has an abundance of commodities, agricultural products and minerals. which China needs.
Chinese Foreign Ministry spokesman Lin Jian said the Peru port under the Belt and Road Initiative – China’s global infrastructure development strategy – will cut shipping times from the Latin American country to China by 23 days, reducing logistics costs. will reduce by at least 20 percent. said.
“The completion of Chanque Port will effectively strengthen Peru’s role as a gateway connecting shipping routes on land and sea and between Asia and Latin America.” The spokesman said on Friday.
Experts say the port cements China’s growing position as Peru and the rest of Latin America’s top trading partner, as it puts the United States in its backyard.
“The port of Chancay is seen as a game changer in logistics in Latin America,” Juan Carlos Ladins Azalea, professor of international affairs and international trade management at Peru’s Universidad del Pacífico, told CNBC.
He added that this would open the door to more Chinese investment in South America as Beijing continues to withdraw from the region’s traditional partners, the US and Europe.
between countries expected The port serves Brazil, a major buyer of Chinese products and one of its largest exporters of agricultural goods and iron ore.
“There is interest across the region in reaping the benefits of a new port,” Carlos Cárdenas, head of Latin American insights and analysis at S&P Global Market Intelligence, told CNBC.
He added that it has also revived long-standing discussions on the possible construction of “one”.bioceanic corridorA railway link between the Pacific coast of Peru and the Atlantic coast of Brazil could be used to export via China to Asia.
Trade and influence
Xi was in Peru – his second official visit to the country – to attend the 31st APEC Economic Leaders’ Meeting, before traveling to Brazil for the 19th G20 summit.
His tour of South America comes as follows. Peru And Brazil According to data from Beijing, bilateral trade with China has increased amid deepening economic ties.
China belongs to Peru. Largest trading partnerSigned his Belt and Road Initiative with at least 22 Latin American and Caribbean countries Through various cooperation agreements.
Although Brazil is not a signatory to the BRI, China has long belonged to Brazil. Largest trading partner and export destination for more than a decade, while Brazil has been China’s largest trading partner in Latin America.
“There are 33 countries in Latin America that consider themselves part of the so-called Global South, and China is keen to expand its influence. [there] through trade and investment,” said Ryan Berg, director of CSIS’s Americas Program.
“Often, trade relations develop into more strategic ties, cultural exchanges, defense and security cooperation, etc.,” he said, adding that China’s long-term goal is to replace the US in the region.
American concerns are growing.
America has. Allegedly expressed concern over China’s growing role in Peru’s infrastructure and Chanque port, which some officials claim May be used by Beijing’s navy.
Meanwhile, an adviser to Donald Trump Allegedly Proposed tariffs of 60 percent on goods passing through a new Peruvian port or any Chinese-owned or controlled port, the president-elect has proposed raising tariffs on all goods coming from China.
However, in terms of Latin America’s acceptance of more Chinese investment, experts say the United States should hold itself responsible for the seeding ground.
“The United States has practiced strategic neglect of its shared neighborhood. This space has allowed China the ability to expand with little pushback or competition,” Berg said.
It has been an economic and geopolitical mistake, though not necessarily a national security problem as some have suggested, according to CSIS’s Reinsch.
“The United States has a long history of neglecting Latin America, and this is just the latest chapter,” Reinsch said.