China has emerged as a leading player in global economic activities over the past decades. Its rapid growth and growing influence have not only transformed the domestic landscape but have also significantly impacted regional and global economies. A key platform for China’s engagement with other countries is the Asia-Pacific Economic Cooperation (APEC) forum, that includes 21 member economies across the Asia-Pacific region. Through its active engagement in APEC, China has played significant role in driving economic growth, fostering trade, and implementing large-scale infrastructure projects such as the Belt and Road Initiative (BRI). Additionally, China’s investment in key ports, including the Chancay Port in Peru, demonstrates its expanded economic activities within APEC.
Since its accession to the World Trade Organization (WTO) in 2001, China has solidified its position as a central economic player in the Asia-Pacific region. As the world’s second-largest economy, China’s economic development put the fruitful impact on the APEC economies, many of which are highly dependent on trade and investment flows. APEC members, ranging from developed economies like the United States and Japan to emerging markets like Indonesia and Vietnam have increasingly integrated China into their economic frame works, given its investment capacity, vast market and technological advancements.
The Chinese government’s dynamic participation in APEC forums has led to deeper economic cooperation within the region. Through its “open regionalism” approach, China has helped to drive trade liberalization, fostered multilateral economic dialogues, and contributed to the region’s economic integration. China has supported the reduction of tariffs and non-tariff barriers, promoted regional economic cooperation agreements and facilitated a more interconnected trade environment in APEC. By playing a central role in shaping policies related to free trade and economic integration, China has helped enhance the overall competitiveness and prosperity of the region.
Additionally, the BRI aims to connect China with more than 140 countries across Africa, Asia, Europe, and beyond through a network of trade routes, railways, ports, and highways. The initiative is fundamentally designed to enhance global trade flows, improve regional infrastructure, and stimulate economic development. APEC economies, many of which are located along key BRI routes, have stood to benefit greatly from this extensive vision.
Within the APEC region, China’s participation in the BRI has had transformative impact. The BRI’s emphasis on infrastructure development is particularly beneficial for emerging APEC economies that are in need of energy systems, digital infrastructure and modernized transportation networks. China has invested in various projects including railways, ports and roadways, which have not only enhanced connectivity between APEC member countries but also stimulated regional trade. By reducing logistical costs and improving access to markets, these infrastructure developments have helped boost economic activity, enhance regional competitiveness, and create new opportunities for businesses and consumers alike.
For example, China has financed several railway projects in Southeast Asia, including the China-Laos Railway, which connects Kunming in China to Vientiane in Laos. This railroad significantly reduces the time and cost of transporting goods between these two countries, stimulating bilateral trade and economic cooperation. Similarly, the BRI’s focus on digital infrastructure has led to investments in internet connectivity and technology transfer, allowing APEC nations to advance their digital economies and integrate more seamlessly into the global economy.
One of the standout examples of China’s investment in APEC countries is the development of the Chancay Port in Peru. Located on the Pacific coast, Chancay Port is poised to become one of Latin America’s most significant logistics hubs, connecting the region with China and other global markets. In 2020, China’s state-owned shipping company, Cosco Shipping, signed an agreement to invest heavily in the construction of the port, which is expected to significantly improve trade flows between Peru and China.
Chancay Port is strategically located near the city of Lima and offers proximity to major trade routes in the Pacific Ocean. Once fully operational, the port will facilitate the export of Peruvian goods, such as minerals, agricultural products, and seafood, to China, one of Peru’s largest trading partners.
Furthermore, it will serve as a key transhipment hub for goods moving between Asia and other parts of South America, thereby enhancing regional trade connectivity. The port’s development is part of a broader effort by China to strengthen its trade relations with Latin America, a region where it has already become a major investor and trading partner.
The Chancay Port project is emblematic of China’s commitment to improving infrastructure and connectivity in APEC countries. By investing in critical infrastructure, China not only supports the economic development of its partners but also creates new opportunities for Chinese companies to expand their reach and access new markets. The port is expected to generate significant employment opportunities and economic benefits for Peru, while also enhancing the competitiveness of Latin American economies within global supply chains.
The development of Chancay Port and the broader implementation of the BRI in APEC countries has far-reaching impact for the region’s economic growth and development. Through its investments in infrastructure and trade facilitation, China is helping to close the development gap in emerging APEC economies, enabling them to better integrate into global markets.
Moreover, China’s role as both a source of capital and a destination for exports has created new opportunities for economic growth and poverty reduction in many APEC countries.
In addition, China’s deepening economic ties with APEC countries have fostered greater political and diplomatic cooperation, leading to more robust multilateral partnerships. The BRI, for example, has become a platform for China to engage with APEC countries on shared economic interests and promote sustainable development initiatives, such as green infrastructure and environmental protection.
China’s active role in the APEC region has been a key driver of economic growth and development. Through initiatives like the Belt and Road Initiative and strategic investments in infrastructure projects such as the Chancay Port, China has not only expanded its economic influence but has also contributed to the prosperity of APEC economies. As APEC continues to evolve as a platform for trade and economic cooperation, China’s role is likely to remain pivotal in shaping the future economic landscape of the Asia-Pacific region. By fostering trade, investment, and infrastructure development, China is helping create a more interconnected, resilient, and prosperous APEC community.
The writer is a senior journalist and expert on international affairs. He may be connected at [email protected]
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