Chethana Janith, Jadetimes Staff
C. Janith is a Jadetimes news reporter covering science and geopolitics.
As global attention turns to the impact of Donald Trump's return to the White House on US-China relations, Beijing has made a bold move to solidify its presence in Latin America.
While Trump’s campaign promises included tariffs of up to 60% on Chinese goods, China has shifted its focus southward, unveiling a game-changing megaport in Peru that could reshape trade routes and bypass North America altogether.
President Xi Jinping attended the inauguration of the Chancay port on Peru's coastline, underscoring its strategic importance. The timing of this event, coinciding with the Asia-Pacific Economic Cooperation (APEC) summit in Peru, highlighted China's growing interest in the region, traditionally regarded as within the US sphere of influence.
Experts note that the US is now grappling with the consequences of prolonged neglect of its neighbors.
“The US has been largely absent in Latin America for years, giving China the opportunity to step in and reshape dynamics in the region,” said Monica de Bolle, a senior analyst based in Washington.
Chancay, a $3.5 billion project spearheaded by China’s state-owned Cosco Shipping, has already transformed a quiet Peruvian fishing town into a major logistics hub, poised to boost the country’s economy.
Peruvian President Dina Boluarte praised the port as a "nerve center" that will connect the Andean region to the vast Asian market. China’s Communist Party newspaper described the development as a "win-win" partnership.
However, the megaport’s significance extends far beyond Peru. It is expected to facilitate the movement of goods from neighboring countries such as Chile, Ecuador, Colombia, and Brazil to major Asian destinations like Shanghai. This will reduce shipping times and costs significantly, benefiting exporters of commodities like Brazilian soybeans and Chilean copper.
Yet, the port also raises concerns. While it promises to boost trade, it opens the door for an influx of low-cost Chinese goods, leading some nations, such as Chile and Brazil, to impose stricter import taxes to protect domestic industries.
Military analysts have also voiced unease about Chancay’s potential dual-use capabilities. Retired US military official Gen. Laura Richardson recently warned that such facilities could serve as future strategic naval access points for China, raising alarm over the growing military implications of Beijing's investments in Latin America.
This megaport marks a significant milestone in China's efforts to cement its economic and strategic influence in a region historically dominated by US interests.
Even if military concerns over China's growing presence in Latin America do not materialize, the perception remains strong that the US is losing influence in the region as China continues to advance its Belt and Road Initiative (BRI).
Outgoing President Joe Biden, attending the APEC summit in South America for the first time during his term, appeared overshadowed by China's Xi Jinping, who has cultivated stronger ties in the region through frequent visits and economic engagement.
Professor Álvaro Méndez, director of the Global South Unit at the London School of Economics, observed that the US had long taken Latin America for granted, allowing China to step in and build partnerships with relative ease. "China only needed to do slightly better than the US to gain a foothold," he remarked.
The BRI, which has channeled unprecedented investment into nearly 150 countries worldwide, has not always delivered successful outcomes. Some projects remain unfinished, and several participating nations are now burdened with heavy debt. Yet, both left-leaning and right-leaning governments in Latin America have grown more aligned with Beijing out of necessity, notes Monica de Bolle of the Peterson Institute.
"The US has every reason to feel uneasy," de Bolle added, emphasizing China's "very strong foothold" in the region, even as president-elect Trump prepares to challenge Beijing's influence. She anticipates increased US pressure on Latin American countries, though most nations will strive to avoid taking sides.
"Latin America doesn’t need to choose between Beijing and Washington unless forced to—and forcing them would be a mistake," de Bolle explained.
However, South American countries like Peru, Chile, and Colombia may be vulnerable to pressure due to their bilateral free trade agreements with the US, which Trump could renegotiate or even dismantle. The United States-Mexico-Canada Agreement (USMCA), up for review in July 2026, will be closely monitored, as negotiations are expected to begin in 2025.
Professor Méndez stressed the need for a unified regional strategy, arguing that Latin America should not solely depend on either China or the US. However, the challenge of coordinating 33 countries toward a common goal remains significant.
Eric Farnsworth, vice president of the Council of the Americas, sees potential for renewed US engagement, noting that many in Latin America still favor the US over China. "People would choose the US if there were a meaningful alternative to what China offers," Farnsworth said, but the US must address the region's massive unmet needs.
He expressed optimism about Trump’s appointment of Marco Rubio as secretary of state, citing Rubio’s understanding of the importance of economic engagement with the Western Hemisphere.
However, the US’s longstanding focus on illegal migration and drug trafficking may continue to overshadow broader economic partnerships. With Trump planning to intensify deportations, there is little indication of a shift in US strategy.
As Latin America braces for potential turbulence under the next administration, the specter of a US-China trade war looms, threatening to pull the region into economic crossfire.
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