US Calls on Latin American Nations to be Vigilant of Chinese Investment

APEC Summit: US President Joe Biden and Chinese President Xi Jinping Attend

President Xi Jinping and Peru’s president Dina Boluarte attend the inauguration of a Chinese-funded port in Chancay. (AP pic)

The United States on Thursday called on Latin American nations to be vigilant of Chinese investment as President Xi Jinping was inaugurating a major port in Peru.

US Concerns Over Chinese Investment

Xi, in Peru alongside US President Joe Biden for the APEC summit, was opening the first Chinese-funded port in South America, a US$3.5 billion complex in Chancay north of Lima that is designed to be a regional trade hub.

“We believe it is essential that countries across the hemisphere ensure that PRC economic activities respect local laws as well as safeguard human rights and environmental protections,” said Brian Nichols, the top US diplomat for Latin America, referring to the People’s Republic of China.

US-Peru Relationship

Pointing to the long US relationship with Peru, Nichols said: “We’ll be focused on building those relations and making sure that Peruvians understand the complexities of dealing with some of their other investors going forward.”

He said that the US has also recently provided support to Peru, including train donations to the city of Lima, space cooperation led by Nasa and the donation of nine Black Hawk helicopters to help police battle transnational crime.

US Agenda

Dan Kritenbrink, the top US diplomat for East Asia, said that the United States came with an “affirmative agenda” and was not seeking to force countries to choose between rival powers.

“We do want to make sure that countries have choices and they were able to make them freely without coercion,” Kritenbrink told reporters.

Historical Context

The United States for two centuries has considered Latin America its sphere of interest, but it has faced increasing competition around the world, especially in the economic sphere, from China.

US policymakers often highlight debt associated by Chinese projects and China’s use of its own workers in mega-projects.

Impact of the Port

The port will allow South American nations to skirt ports in Mexico and the United States as they trade with Asia.

Upcoming Meeting

Xi is set to meet on Saturday in Lima with Biden in their likely final encounter before Donald Trump returns to the White House.

Conclusion

The US call for vigilance over Chinese investment in Latin America is a reflection of the growing competition between the two global powers. While the US has a long history of engagement with the region, China is increasingly becoming a major player in Latin American economies.

FAQs

Q: What is the significance of the Chinese-funded port in Peru?
A: The port is designed to be a regional trade hub and will allow South American nations to skirt ports in Mexico and the United States as they trade with Asia.

Q: What is the US concern over Chinese investment in Latin America?
A: The US is concerned that Chinese investment may not respect local laws, human rights, and environmental protections.

Q: What is the US agenda in Latin America?
A: The US has an “affirmative agenda” and is seeking to build relationships with Latin American nations, provide support, and ensure that countries have choices and make decisions freely without coercion.