As global attention turns to how Donald Trump’s return to the White House may impact U.S.-China relations, China has taken a bold step to cement its influence in Latin America with the inauguration of a new megaport in Peru.

The $3.5 billion Chancay port, developed by China’s state-owned Cosco Shipping, promises to revolutionize trade routes in the region, bypassing North America entirely. Chinese President Xi Jinping attended the port’s inauguration this week, underscoring the strategic importance of the project. Xi was in Peru for the Asia-Pacific Economic Cooperation (APEC) Forum, but much of the focus shifted to Chancay and its broader implications.

The port is expected to transform trade dynamics across Latin America, offering a direct connection for goods from countries like Chile, Ecuador, Colombia, and Brazil to Asian markets. The new infrastructure will reduce shipping times to Shanghai and other Asian destinations from 35 to 23 days and accommodate larger vessels, further solidifying China’s economic foothold in the region.

Peruvian President Dina Boluarte called Chancay a “nerve centre” for accessing Asia’s vast markets. China’s “People’s Daily” praised the port as a “vindication of China-Peru win-win cooperation.”

Observers say the project highlights a growing shift in Latin America’s economic alliances, fueled by what many perceive as U.S. neglect. Monica de Bolle, a senior fellow at the Peterson Institute for International Economics, noted, “The U.S. has been absent from Latin America for so long, and China has moved in so rapidly, that things have really reconfigured in the past decade.”

Beyond enhancing exports like Brazilian soybeans and Chilean copper, the port also raises concerns about increasing imports of cheap Chinese goods. In response, countries like Chile and Brazil have recently scrapped tax exemptions for low-value foreign purchases to protect their domestic industries.

Chancay’s opening signals not just a transformation in Peru’s economy but a redefinition of trade dynamics in a region long considered America’s sphere of influence.