Key Points:
– Presidents Xi Jinping of China and Joe Biden of the U.S. are scheduled to meet at the Asia-Pacific Summit in Lima, Peru.
– China continues to increase its presence in developing nations through mega infrastructure initiatives like the billion-dollar port in Peru.
– Concerns are rising over China’s growing influence in Latin America, with locals in Peru voicing their apprehensions about the Chinese-owned megaport.
The Asia-Pacific Summit Welcomes World Leaders
This week, Peru welcomed Chinese President Xi Jinping who is arriving ahead of the much-anticipated Asia-Pacific Summit in Lima. Here, he is set to have discussions with U.S President Joe Biden amid the intensifying trade tensions between their nations, the world’s two economic giants. The meeting between the two leaders is reported to be the last before President-elect Donald Trump assumes office.
Future of American Policy in the Indo-Pacific
National Security Adviser Jake Sullivan has declared that the 21 nations of the APEC (Asia-Pacific Economic Cooperation) are on the brink of unveiling a secretariat. This move aims to ensure that the collaborative alliance remains a dependable slice of American policy in the Indo-Pacific region in the future.
China’s Belt and Road Initiative in Focus
Under the Belt and Road Initiative, China has been making noticeable strides in boosting its presence in developing countries. This effort is on full display in Peru where the Chinese-funded project, a massive megaport stationed just north of Lima in Chancay, stands as a testament to China’s investment penetration in foreign lands.
President Xi virtually inaugurated the megaport after his arrival amidst joyful celebrations and ceremonies. The Chinese leader was given a warm reception from the people of Lima, as well as Peru’s President Dina Boluarte.
A Word of Caution to Latin American Nations
As China gradually increases its hold over the region, Brian Nichols, a top U.S. diplomat to Latin America, has advised countries in the region to tread cautiously when dealing with Chinese investment. Owning one of the largest South American ports gives China unrestricted access to the East Pacific Ocean, which includes vast fishing territories.
Cost and Consequences of the Mega Port
The grand megaport project, spearheaded by Chinese shipping company Cosco, is reported to cost approximately $1.3 billion. It is anticipated to become a vital cog in the wheel of the global economy. However, the project has stirred some unease among the locals in Chancay. With a third of the town’s populace lacking access to running water or adequate sanitation, the mega port instead of solving issues seems to be exacerbating them.
Locals Voice Their Concerns
Local Peruvian fisherman claim that the megaport’s dredging activities have led to the destruction of fish breeding grounds, killing any potential for them to flourish. The sentiment among the locals is one of disappointment and blame towards their government for failing to protect their interests over foreign ones. With this escalating situation, the meeting between Presidents Biden and Xi Jinping at the Asia-Pacific Summit is more critical than ever for defining the future of trade and international relations.