Beijing () – Relaunch collaboration and strengthen multilateralism at the gates of the United States, which Washington has long considered its “backyard”. These are the objectives of the trip that Chinese President Xi Jinping began yesterday to South America to participate in the 31st meeting of the APEC (Asia-Pacific Economic Cooperation) in Lima, Peru, and in the XIX Summit of the G20 countries that will take place in Rio de Janeiro, Brazil. The ambition, not hidden, is to strengthen the link between Beijing and Latin American countries, giving life to a community with a shared future, greater cooperation and better governance for a “multipolar” world and an “advantageous and inclusive” globalized economy.
They are far-reaching objectives at a historical moment in which divisions, conflicts, chaos and unprecedented but closely related challenges seem to prevail: from the economic slowdown to the increasingly frequent resort to trade protectionism, including regional conflicts, these crises require a global and effective response. From this point of view, the Chinese president has always paid attention to APEC and has worked to establish a mechanism that provides for regular meetings between leaders with the purpose of promoting openness and development, committing to support what has been called the “Asia-Pacific miracle.”
A region with enormous potential due to the wealth of its natural resources, tourism, the dynamism of internal markets, purchasing power and the development of a digital economy. In October, the International Monetary Fund (IMF) forecast that the world economy will grow by 3.2% in 2024, while the Asian reality, in a phase of great development, should reach 5.3% in the current year. All of this pointing to inclusion and collaboration, despite Beijing’s position of strength, in response to those who push in the direction of confrontation, the construction of walls, tariffs and protectionism. And, in this perspective, the return of Donald Trump to the White House for a second term four years after the first, and in a world even more divided by conflicts, certainly does not seem to lead to greater openness in a globalization perspective.
Xi in South America: APEC and G20
Peru is one of the first Latin American countries to establish diplomatic relations and a comprehensive strategic partnership with China. It is also the first Latin American state to have signed a package of free trade agreements with Beijing, which has become Lima’s main trading partner and largest export market for 10 consecutive years. For its part, Brazil, the second destination of Xi’s trip, is an old friend of China with substantial progress in relations. Indeed, China has been Brazil’s largest trading partner for 15 consecutive years, while Brazil is China’s main trading partner and the largest investment destination in Latin America.
With this in mind, ten years ago Xi proposed for the first time in Brasilia the vision of a China-Latin America community united by a shared future, pointing the way to developing relations in a new historical stage. Analysts and experts from the continent point out that, over time, the Chinese president has focused on the progress of relations, collaboration and empowerment of the countries of the Global South, putting global issues on the table and reforming the system of leadership.
The G20 in the Brazilian metropolis is also part of this perspective, which will take place on November 18 and 19 under the motto: “Building a just world and a sustainable planet”, which represents not only a reminder of the times, but also of the aspirations of many countries on the planet. During the upcoming summit, the Chinese leader’s 11th participation in the international association, he will address key issues such as building an open world economy and improving global governance. According to sources in Beijing, the president also wants to illustrate Chinese positions on global problems and possible solutions to challenges and critical situations. A perspective, also in this case, oriented towards development in a framework of “collaboration” despite the obvious difficulties, starting with the economy.
The port of Chancay
Chinese interest in the South American continent is well demonstrated by one of the many significant events scheduled for these intense days of the Beijing leader’s trip to the continent: the “virtual” inauguration, by videoconference, of the Chancay megaport, about eighty kilometers away. north of Lima, along with her Peruvian counterpart Dina Boluarte and at least 16 APEC heads of state. This will turn the “Chancay-Shanghai” route into a true “path of prosperity, promoting the common development of China and Peru,” as Xi Jinping himself pointed out in an article bearing his signature and published in a local newspaper. And it will also help build “a New Age Inca Trail with the port of Chancay as a starting point, thus increasing the overall development and integration of the region,” the Chinese leader continues, while sponsoring “joint efforts of both countries to ensure success.
The port of Chancay will be a key maritime node for trade between South America and Asia, in particular China (port of Shanghai), because it will constitute a regional center to distribute goods between Peru, Chile, Ecuador and Colombia. At this moment it takes between 35 and 40 days to get from South America to Asia (China, Korea or Japan), but with the port of Chancay ships can arrive in 23 days, which represents a strong saving in terms of time and costs. . The structure will also benefit thousands of families in the corridor that runs from the center of the country to the coast, generating an economic and social impact equivalent to 4.5 billion dollars a year, or 1.8% of the gross domestic product (GDP). . This will translate into thousands of jobs in sectors such as international trade, fishing, food, beverages and metallurgy, among others. It is a multipurpose infrastructure that will allow Peru to receive ships of large size and cargo capacity, up to 24 thousand containers. Its objective is to move between 30% and 40% of national cargo to China and Southeast Asia in the first years of activity. The only access to the port is through a 1,840 meter bridge, the longest in Peru, built to generate less impact on the city of Chancay, and through which you reach the operational area of the docks, with a length total of more than 1.5 kilometers.
However, from a perspective based on economic development and trade associations, there is no lack of critical elements, starting with the “psychological” risks related to shopping addiction and compulsive buying in a world where marketing is increasingly invasive . The Uruguayan psychologist Verónica Massonier shares this concern and explained to the AFP that there are people who spend “whole nights browsing screens” and buying “comfortably and quickly” on the main Chinese shopping platforms such as Shein, Temu and AliExpress. According to the data platform StatistaLatin Americans spent around $122 billion on online purchases in 2022, a figure that is expected to increase to $200 billion by 2026 with an increasing trend. In addition to psychological damage, there are also environmental problems, as United Nations experts point out, according to which the fashion industry alone linked to online commerce generates around 10% of the carbon emissions that overheat the planet, more than all international flights and sea shipments together. And a 2023 report from the US-China Economic and Security Review Commission, a US government agency, adds that “Shein and other platforms fast fashion are aggravating this trend.”
Challenge between Washington and Beijing
This is a scenario that Donald Trump’s new administration in the White House will also increasingly have to deal with. In a report published just a few weeks ago by Senator Marco Rubio, officially appointed yesterday as the next US Secretary of State, he confirms that “communist China is the most powerful adversary that the United States has faced as far back as we can remember.” . Especially since, he points out, past threats like Nazi Germany and the Soviet Union “had smaller economies than us,” while the Chinese Communist Party “is playing a much better hand.” Beijing, he notes, “controls the world’s largest industrial base, feeding factories with market-distorting subsidies and rampant theft, and is currently the leader in many of the industries that will determine geopolitical supremacy in the 21st century, from the shipbuilding to electric vehicles. “This means that Beijing – he concludes – will have more influence over which set of values will define the 21st century: freedom and representative government, or authoritarianism and oppression.”
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