The United States has urged Latin American nations to exercise caution regarding Chinese investment, as President Xi Jinping inaugurated the first Chinese-funded port in South America — a $3.5 billion facility in Chancay, Peru, set to serve as a regional trade hub.
Xi’s visit to Peru for the APEC summit alongside U.S. President Joe Biden highlights China’s expanding economic footprint in the region. Brian Nichols, the top U.S. diplomat for Latin America, stressed the importance of ensuring that “PRC economic activities respect local laws and safeguard human rights and environmental protections.”
Nichols pointed to the longstanding U.S.-Peru relationship, underscoring recent American support, including train donations to Lima, space collaboration through NASA, and nine Black Hawk helicopters to combat crime. Dan Kritenbrink, the U.S. diplomat for East Asia, emphasized that the United States aims to offer Latin American nations options without compelling them to pick sides.
China’s growing influence poses challenges for the United States, which has traditionally viewed Latin America as within its sphere of influence. U.S. policymakers often raise concerns about debt and reliance on Chinese labour associated with Beijing’s projects. The new port, allowing South American countries to bypass Mexico and U.S. ports in trade with Asia, underscores China’s ambitions in the region.
Xi and Biden are scheduled to meet on Saturday in Lima, their likely final engagement before Donald Trump returns to the White House.
