By Eduardo Baptista, Marco Aquino, Lucinda Elliott LIMA (Reuters) -Chinese President Xi Jinping launched a week-long diplomatic blitz of South America on Thursday by inaugurating a massive deep-water port in Peru,

Chinese President Xi Jinping and Peruvian counterpart Dina Boluarte inaugurated a $1.3 billion port that could transform South American trade with Asia just as Beijing prepares for a potential trade war with the US.

The port opening in Chancay underscores China’s growing clout in a region that once looked primarily to the United States for economic opportunity.

The new megaport is 992 hectares in size and creates a direct link between Shanghai and Peru and will cut shipment times down by 20 days on some routes.

The port has the potential to “transform trade” by turning Peru into a shipping hub thanks to Chinese investment.

A remote fishing town on the edge of Peru’s coastal desert is the site for a $1.3 billion megaport majority-owned by the Chinese shipping giant Cosco

Lima, Peru - Recent As the 2024 APEC gathering commences in Lima, Peru, China's deepening partnerships with Latin American nations - bolstered by trade, investment, and the Belt and Road initiative - serves as a key example of the country's commitment to fostering inclusive economic cooperation across the Asia-Pacific region.

The Chinese leader is due to inaugurate a $1.3 billion megaport that is expected to become a hub for South America-Asia trade.