US urges Latin American nations to 'be vigilant' of Chinese investment as Xi inaugurates Peru port

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.

Xi, in Peru alongside US President Joe Biden for the APEC summit, was opening the first Chinese-funded port in South America, a $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.

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.”

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He said that the United States 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.

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.

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.

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

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

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