Link to article: https://www.reuters.com/world/south-america-trump-already-losing-trade-battle-with-china-2024-11-11/
Peru, a South American country who is the world’s no. 2 copper exporter, has become the middle-man in the trade battle between the US and China. The incoming Donald Trump White House is going to find itself already on the losing side of this trade battle which is just a piece of the bigger power realignment around resource-rich region. Peru is set to host Asia-Pacific Economic Cooperation leaders this week such as outgoing US president Joe Biden and China’s president Xi Jinping who has his eyes set on implanting a major new Chinese-built port in Peru. China’s presence within Peru has grown rapidly due to its desire for the region’s main exports such as corn, copper, soy, beef, and battery-metal lithium. This has caused Beijing to be the main trade partner from Brazil to Chile and Argentine, wiping out any of Americans regional political influence. It has been added that the strategical Chinese residence has helped counter the US presence around the Indo-Pacific and offset trade war risks.
China has decided to establish these economic ties based on the establishment of the chinese-built port rather than building military bases due to the great impact it would have on their conflict with the United States. During Trump’s previous administration and again under Biden, China has overtaken the United States on trade with Peru. According to a former State Department official, China has infiltrated the region fairly aggressively and is preparing to remain there long-term. If the US does not take action and prioritize its regional economic policy, the western region of South America will continue to lean toward China and their interests. It has been concluded that Peru’s pivot towards China was solely business as it was open to investors from everywhere. Since the US did not offer any investments and Peru was in a position to benefit from any global trade relations the decision was purely based on interest and business.