As the US watches warily, a Chinese megaport opens up Latin America.
China just made a bold move to solidify its influence in Latin America as the world awaits how Donald Trump’s return will alter Washington-Beijing relations.
Trump’s plan, which called for tariffs of up to 60% on goods made in China, helped him win the US presidential election. However, a new megaport supported by China further south could open up completely new trade routes that avoid North America.
As the US watches China takes the development seriously, as seen by President Xi Jinping’s attendance at the Chancay port’s inauguration this week on the Peruvian coast.
Xi attended the Asia-Pacific Economic Co-operation Forum’s (Apec) annual conference in Peru.
However, Chancay and its implications for China’s increasing aggressiveness in an area that the US has historically.
Considered to be within its sphere of influence were the focus of attention.
According to seasoned observers, Washington is currently bearing the consequences of years of disregard for the needs of its neighbors.
According to Monica de Bolle, senior fellow at the Peterson Institute for International Economics in Washington.
As the US watches things have radically reconfigured in the past decade since the US has been away from Latin America for so long and China has surged in so swiftly.
She tells the BBC, “You have the backyard of America talking directly with China.” “That will be troublesome.”
China’s Cosco Shipping has exclusive rights to operate the megaport
The $3.5 billion (£2.75 billion) project, which was spearheaded by China’s state-owned Cosco Shipping.
Had already transformed a quiet fishing hamlet in Peru into a logistical powerhouse that was poised to revolutionize the nation’s economy before it even opened.
It was described as “a vindication of China-Peru win-win co-operation” in the People’s Daily.
The official newspaper of the Chinese Communist Party.
Similar enthusiasm was expressed by Peruvian President Dina Boluarte.
Who called the megaport a “nerve center” that would offer “a point of connection to access the huge Asian market.”
However, the ramifications extend well beyond the fortunes of a single Andean country.
Goods from Chile, Ecuador, Colombia.
And even Brazil are anticipated to go through Chancay on their way to Shanghai and other Asian ports once it is completely operational.
China already shows a strong interest in the region’s goods, such as Chilean copper and Brazilian soybeans. Larger ships may now be handled at this new port, which also reduces shipping durations from 35 to 23 days.
Nonetheless, both imports and exports will be prioritized by the new port.
Chile and Brazil have eliminated tax breaks for individual consumers on low-value international transactions as evidence.
Mounts that an inflow of low-cost Chinese items purchased online may be threatening homegrown businesses.
Brazilian soybeans and other commodities can now reach China more swiftly
Chancay can handle Chinese warships if it can handle ultra-large container ships, as anxious US military hawks have noted.
Gen. Laura Richardson, the recently retired chief of US Southern Command.
Which is responsible for Latin America and the Caribbean, has issued the most stern warnings.
The sites might be “points of potential multi-domain access for the [People’s Liberation Army] and strategic maritime chokepoints,” she said.
Accusing China of “playing the ‘long game’ with its development of dual-use sites and facilities throughout the area.”
It is widely believed that the United States is losing ground in Latin America as China continues to advance its Belt and Road Initiative (BRI).
Even if that possibility never comes to pass.
During his first and final trip to South America during his four-year term.
Outgoing US President Joe Biden was one of the leaders attending the Apec meeting.
He appeared to be a smaller version of China’s Xi, according to media analysts.
The director of the London School of Economics’ Global South Unit, Prof. Álvaro Méndez.
Notes that Xi was traveling to Latin America frequently and fostering positive ties.
Whilst the US was taking the continent for granted.
He claims that “the United States has set the bar so low that China only needs to be a little bit better to go through the door.”
It goes without saying that the BRI is not limited to Latin America. China has been pumping money into about 150 countries worldwide since 2023 as a result of its massive infrastructure investment.
The outcomes have not always been favorable; several projects have been abandoned.
And many poor nations who participated in Beijing’s generosity have ended up with mounting debt.
According to Ms. de Bolle of the Peterson Institute.
Both right-wing and left-wing governments have nevertheless put aside their early misgivings about.
China because “their interests are aligned” with Beijing’s.
They have relaxed their guard out of pure necessity.
Beijing now has “a very strong footprint” in the region at a time when President-elect.
Trump wants to “rein in” China, so Ms. de Bolle says the US is correct to feel concerned by this development.
The Apec summit in Peru has highlighted the complex relations between the US, China and Latin America
The majority of nations wish to remain on the sides of both superpowers, she adds, adding.
I think we will eventually start to see the US putting pressure on Latin America because of China.”
“The region does not have to make a decision unless it is forced to, which would be really stupid.”
In the future, Trump might try to renegotiate or even sever bilateral free trade deals with.
South American nations like Peru, Chile, and Colombia, making them susceptible to pressure.
The United States-Mexico-Canada Agreement (USMCA).
Which is subject to discussions in 2025 but is due for revision in July 2026, will be closely watched.
In any case, LSE Professor Méndez believes that greater cooperation is needed in the area.
“Every path should not go to Washington or Beijing.
He points to the challenge of getting 33 nations to agree on a single policy, saying.
Latin America needs to find a more strategic manner, it requires a unified regional plan.”
According to Eric Farnsworth, vice-president of the Council of the Americas, a group located in Washington.
There is still a lot of goodwill for the United States in Latin America.
But the northern neighbor is not meeting the region’s “huge requirements.”
He tells the BBC, “If there was a viable option to China, people would prefer the US.
So the US needs to boost its game in the region.”
He sees some hope in the impending Trump administration, unlike many others.
Particularly with Marco Rubio’s choice as secretary of state.
“Rubio feels a strong desire to interact with the Western Hemisphere economically in a manner that we have not done in a lot of years,” he says.
However, illegal migration and illicit drugs have been the main concerns of succeeding US leaders when discussing Latin America.
Furthermore, Trump’s obsession with plans to deport record numbers of immigrants.
Makes it unlikely that the US will shift course anytime soon.
Latin America is preparing for a challenging four years, just like the rest of the world.
And the region might be caught in the crossfire if the US and China launch a full-scale trade war.
