China Inaugurates $3.5 Billion Megaport in Peru

China is intensifying its economic engagement with Latin America, driven by the need to counter a slowing domestic economy. President Xi Jinping recently inaugurated a $3.5 billion megaport in Peru, owned by Chinese state shipping company Cosco, which establishes a direct shipping route between Shanghai and Chancay. This initiative, part of China's Belt and Road initiative, is expected to cut shipping times to China by 23 days and reduce logistics costs by 20%. Experts suggest that this port will solidify China’s status as a primary trade partner in Latin America, eclipsing traditional partners like the United States. The growing trade relationship has seen bilateral trade increase from $12 billion in 2000 to over $480 billion in 2022, with expectations for further growth. The port is perceived as a significant advancement in logistics for the region, potentially attracting more Chinese investments into South America.