Amid unease over Trump 2.0, Xi heads to South America
Chinese President Xi Jinping has started his South America trip, with Peru as his first stop. The visit comes as the Asia-Pacific Economic Cooperation (APEC) leaders' meeting in Lima is marred by fears of global trade tensions under United States President Donald Trump's administration. Trump has promised to impose 60% tariffs on Chinese imports- a step that could aggravate China's housing crisis and slow consumption.
Xi to inaugurate South America's 1st Chinese-funded port
During his Peru visit, Xi will inaugurate South America's first Chinese-funded port in Chancay, around 80km north of Lima. The $3.5 billion port is expected to emerge as a major trade hub and represents China's increasing influence in the region. The development is in line with China's massive infrastructure projects across the continent, including railways and highways.
Chancay port to boost trade for South American countries
Bilateral trade between China and Peru touched nearly $36 billion in 2023, making Peru China's fourth-largest trading partner in Latin America. The new Chancay port will boost trade for Chile, Colombia, and Ecuador with Asia by serving as an alternative to ports in Mexico and the United States. The APEC gathering in Lima will see government ministers and business leaders from member countries like Russia, Japan, South Korea, Indonesia, Chile, and Australia.
Xi's visit to Brazil for G20 summit
After Peru, Xi will head to Rio de Janeiro for the G20 summit from November 17 to 21. China is Brazil's largest trading partner with bilateral trade surpassing $180 billion in 2023. China's major exports to Brazil are semiconductors, phones, and pharmaceuticals. Brazilian President Luiz Inacio Lula da Silva hopes to bolster ties with China while keeping good relations with the US.
Brazil's potential participation in China's Belt and Road Initiative
During a visit by Vice President Geraldo Alckmin earlier this year, there were hints at Brazil's potential participation in China's Belt and Road Initiative. Several South American countries, including Peru, have already joined this initiative as part of President Xi's strategy to expand China's global influence. Both Brazil and China have positioned themselves as mediators in the Ukraine conflict without sanctioning Russia for its invasion.
