Xi opens $1.75 billion megaport in Peru funded by China

Move comes as Beijing looks to further tap resource-rich Latin American region

LIMA - Chinese President Xi Jinping launched a week-long diplomatic blitz of South America on Nov 14 by inaugurating a massive deep-water port in Peru, a US$1.3 billion (S$1.75 billion) investment by Beijing as it seeks to expand trade and influence on the continent.

With China's demand for agricultural goods and metals from Latin America growing, Mr Xi will participate in the Asia-Pacific Economic Cooperation summit in Lima, then head to the Group of 20 summit in Rio de Janeiro next week, during which he will also make a state visit to Brazil.

Mr Xi and Peruvian President Dina Boluarte on Nov 14 participated by video link in the opening of the Chancay port, about 80km north of Lima on the Pacific Ocean, and signed a deal to widen an existing free trade agreement.

Mr Xi said that Chancay, a 15-berth, deep-water port, was the successful start of a "21st century maritime Silk Road" and part of China's Belt and Road Initiative, its modern revival of the ancient Silk Road trading route.

"China is willing to work with the Peruvian side to take the Chancay project as a starting point to forge a new maritime-land corridor between China and Latin America and connect the Great Inca Trail," Mr Xi said, referring to a 15th-century mountain network that joined the Inca Empire.