China intends investing $3.5 billion in a deep-water port at Chancay in Peru. The facility will be operated by Cosco Shipping, an enterprise controlled by the Government of the PRC.  The new port will serve as an export terminal for agricultural products from Brazil and also for vital minerals including cooper and lithium from the Andes. 

The proposed port is part of the Belt and Road initiative devised to create closer economic ties with nations with economies based on the export of commodities and to extend the geopolitical influence of China.  It is also intended on establishing an industrial hub in the vicinity of the port to process commodities for shipment to China.  Planners in both China and Peru are evaluating both an inter-oceanic highway through the Andes to Brazil and a possible rail link.

China recognizes the need to import agricultural commodities and minerals to support growth and is accordingly investing in Latin America to the disadvantage of the U.S.