Beijing (AFP) – Chinese leader Xi Jinping headed to Peru on Wednesday, bound for a meeting of Asia-Pacific Economic Cooperation (APEC) organisation leaders overshadowed by fears of renewed global trade tensions under Donald Trump. Xi will join leaders from the United States and other Asia-Pacific nations in the Peruvian capital Lima for the APEC gathering, after which he will go to Brazil for a G20 summit.
China — the world’s second-largest economy — is grappling with a prolonged housing crisis and sluggish consumption that could worsen under Trump, who has promised to slap 60 percent tariffs on Chinese imports. While in Peru, the Chinese leader will also inaugurate South America’s first Chinese-funded port, in Chancay, around 50 miles (80 kilometres) north of Lima. Expected to serve as a major trade hub, the $3.5-billion complex is seen as symbolic of Beijing’s growing influence in South America, where it has built a vast array of railways, highways, and other infrastructure.
Bilateral trade between the Asian giant and Peru, one of Latin America’s fastest-growing economies over the past decade, stood at nearly $36 billion in 2023, making Peru China’s fourth-largest Latin American trading partner. The Chancay port will also serve Chile, Colombia, and Ecuador, among other South American countries, allowing them to skirt ports in Mexico and the United States for trade with Asia.
Starting Wednesday, Lima will receive government ministers and business leaders of APEC member countries, which also include Russia, Japan, South Korea, Indonesia, Chile, and Australia. Ministerial meetings will take place Thursday, followed by talks at the level of heads of state the following two days. State broadcaster CCTV said Xi will be accompanied in Peru by Foreign Minister Wang Yi.
– Peru to Brazil –
After Lima, Xi will go to the Brazilian coastal city of Rio de Janeiro from November 17 to 21 for a summit of G20 leaders. China is Brazil’s top trading partner, exceeding $180 billion in each-way trade in 2023, with semiconductors, phones, and pharmaceuticals dominating exports to the South American country. Since returning to power last year, Brazilian President Luiz Inacio Lula da Silva has carried out a delicate balancing act as he seeks to deepen ties with China while improving relations with the United States.
Both Brazil and China have sought to position themselves as mediators in the conflict in Ukraine, while declining to sanction Russia for its invasion. A visit this year by Vice President Geraldo Alckmin was seen as paving the way for Brazil to join China’s massive Belt and Road Initiative infrastructure project. A number of South American nations, including Peru, have signed up to the initiative, a central pillar of President Xi’s bid to expand China’s clout overseas.
© 2024 AFP
