Lima. Chinese President Xi Jinping yesterday inaugurated the Peruvian megaport Chancay as a new maritime corridor between Asia and Latin America, in one of Beijing’s most ambitious bets in the region, as it is the first port financed by China in South America. Xi also signed the expansion of a free trade agreement with Peru that has boosted bilateral trade.
The megaport, built by Cosco Shipping Ports, has already attracted $1.3 billion in Chinese investment and is expected to attract more in the near future, in a bid to become a major shipping hub between Asia and South America. .
The final project foresees 15 docks and a total investment of 3.5 billion dollars. According to Cosco Shipping Ports, the terminal will reduce the cost of transportation to and from Peru, Chile, Colombia, Ecuador and Brazil, which will no longer have to use ports in Mexico or the United States for trade with Asia.
China hopes to supply raw materials through the Chancay port, including copper, soybeans and lithium, the precious key mineral in the energy transition.
Mario Ocharán, Peruvian director of the Chancay Chamber of Commerce, told Reuters that the first ship would set sail the week of November 18, transporting Peruvian fruit to China.
The real goal of the megaport, according to Ocharán, is access to Brazil, where a new railway line will connect the port with Brazilian supplies.
Xi, who arrived in Lima for the summit of the Asia-Pacific Cooperation Forum (APEC) in a diplomatic offensive in Latin America, stated during a meeting with Peruvian President Dina Boluarte that the launch of the megaport is a sign successful
cooperation with the government of Peru under the global Belt and Road plan.
China is willing to work with Peru to take the Chancay project as a starting point to forge a new marine land corridor between China and Latin America and connect the great Inca trail and the 21st century maritime silk route
said Xi at the Government Palace in Lima.
The Chinese president and Boluarte virtually inaugurated the Chancay megaport, located 80 kilometers north of the capital, from the Government Palace of Lima.
Boluarte, who earlier declared that the port will revolutionize
trade in Asia-Pacific, assured that Chancay will become a logistics center for world class
.
Peru is the world’s third largest producer of copper. A decade ago, the country traded more with the United States. China now has a lead of more than $10 billion in bilateral trade, according to recent annual data.
Political tension
The megaport is inaugurated amid concerns about future tariffs from a White House that will be led since January by Republican Donald Trump.
The president of the United States, Joe Biden, also arrived in Lima to participate in the APEC meeting. Xi and Biden are expected to meet on Saturday in Lima, before they leave for Brazil for the Group of 20 major economies (G-20) summit.
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#Peru #inaugurates #AsiaPacific #maritime #corridor
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How might the Chancay megaport reshape existing trade relationships between Latin American nations and their traditional trading partners, such as the United States and Europe?
## Interview: The Chancay Megaport – A New Era for Latin American Trade?
**Introduction**
Welcome to World Today News. Today, we delve into the inauguration of the Chancay megaport in Peru, a pivotal moment in China’s expansion in Latin America. Joining us are two experts: Dr. Maria Rodriguez, a leading scholar on international trade and development, and Mr. Carlos Silva, a Peruvian economist specializing in infrastructure and logistics.
**Securing Latin American Access:**
**Interviewer:** Dr. Rodriguez, China’s investment in the Chancay megaport marks a significant shift in the global trade landscape. What are the implications of this move for Latin America’s economic future?
**Dr. Rodriguez:** This investment signals China’s ambition to establish a stronger foothold in Latin America, leveraging its vast manufacturing capacity and growing consumer market. The Chancay port can potentially transform trade routes, offering faster and cheaper access to Asian markets for Latin American exports like copper, soybeans, and lithium – crucial resources in the global energy transition.
**Interviewer:** Mr. Silva, you’re an expert on Peru’s economy. How do you see the Chancay port impacting Peru specifically?
**Mr. Silva:** For Peru, Chancay presents a unique opportunity to diversify its trade partners and reduce reliance on traditional markets like the United States. The gateway to South America, as envisioned by Cosco, raises hopes for increased foreign investment, job creation, and accelerated economic growth.
**The Geopolitical Landscape:**
**Interviewer:** Dr. Rodriguez, the inauguration coincides with both Chinese President Xi Jinping’s diplomatic offensive in Latin America and escalating tensions between the US and China. How might this geopolitical context influence the success of the Chancay project?
**Dr. Rodriguez:** The timing is undoubtedly strategic. China seeks to solidify its position as a reliable partner in the region, potentially filling the void left by waning US influence. The Chancay project could become a cornerstone of China’s Belt and Road Initiative in Latin America, fostering deeper ties and potentially challenging US hegemony.
**Interviewer:** Mr. Silva, what are your thoughts on the potential implications for Peruvian sovereignty and regional stability?
**Mr. Silva:** Peruvian authorities must ensure transparency and fairness in all projects related to the Chancay port. Balancing Chinese investment with national interests and maintaining a diverse portfolio of trading partners is critical for long-term stability and sustainable development.
**Looking Forward:**
**Interviewer:** Both of you have highlighted the potential benefits and potential challenges associated with the Chancay megaport. Dr. Rodriguez, what are the key considerations for ensuring the project’s long-term success?
**Dr. Rodriguez:**
Robust environmental safeguards, sustainable development practices, and equitable distribution of benefits amongst local communities are crucial. Moreover, fostering a conducive investment climate that encourages competition and avoids creating monopolies is essential.
**Interviewer:** Mr. Silva, what message would you give to the global community regarding Peru’s commitment to responsible development within the context of the Chancay project?
**Mr. Silva:**
Peru welcomes international cooperation and investment. We are committed to environmentally and socially responsible development, ensuring that the Chancay project benefits all Peruvians while adhering to international best practices.
**Closing:**
**Interviewer:** Thank you both for sharing your valuable insights. The inauguration of the Chancay megaport undoubtedly marks a fascinating chapter in the evolving global trade landscape. It will be critical to monitor its impact on the region and beyond.
**Outro:**
This was an insightful discussion on the Chancay megaport and its far-reaching implications. Stay tuned for more in-depth analysis on World Today News.
