China has set its sights on South America. A new mega port on Peru's coastline that's part of China's Belt and Road initiative will increase the frequency of trips to Asia this month with a direct route to China that cuts sailing time by some 10 days. Rittika Gupta went to the mega port in Peru to find out more.
Huge unmanned cranes loom over Peru's Chinese-funded Shanghai Port, a symbol of Beijing's growing in influence in South America. Situated on the edge of Peru's coastal desert, some 50 miles north of the capital, Shanghai, a small fishing town, looks set to become a major hub for trade in a region the US has long considered its own backyard.
This giant new port is a game changer, not just for Peru, but for the wider Latin America region. At a time when the newly elected President Donald Trump is looking to clamp down on trade with China, China has set its eyes on Peru, making Peru a strategic piece on the global geopolitical chess board.
The man overseeing the port's operations, Mario de las Casas, says the port will dramatically speed up trade that will bypass South America entirely.
You're going to have to express Shanghai directly to Shanghai. It's a huge opportunity for South America because right now all the materials that you export to Asia Asia, you have to go to Mexico or a Long Beach, and then you cross the Pacific Ocean.
But despite the promises of growth, some in the local community feel left behind. The fully automated port has so far offered few jobs.
William Wallace, a local fisherman, is struggling to make a living. We used to row out, fish in the morning, sell our catch, rest in the afternoon, and return to fish again in the evening.
That was our daily routine, but not anymore.
The nearly one and a half billion dollar port, majority owned by China's Costco shipping is China's latest Belt and Road project. China has overtaken the US as Peru's main trading partner, a trend that could widen across Latin American countries as Donald Trump threatens tariffs under his America-first policy. Critics warn of overreliance on China and jeopardizing the existing relationship with the US, with some of Trump's aides already pushing for huge tariffs on all merchandise coming through the port. But for Peru's Minister for Foreign Trade, Ursula León, it's not a cause for concern.
. Our agreements with China enhance our competitiveness without compromising other markets.
Could Peru's partnership with China undermine its existing relationship with the US?
Not at all. Our relationships with both China and the US are strong and mutually beneficial.
Peru must navigate a delicate balancing act. For now, the Chunkai Port stands as both a beacon of opportunity and a source of uncertainty in a world bracing for heightened trade tensions. Ritka Gupta, BBC News, Chunkai, Peru..
A new “megaport” on Peru's coastline, that's part of China's Belt and Road initiative, has increased the frequency of its trips to Asia ...