China's influence expands to a new port in Peru.

Good morning. This is the Marketplace Morning Report, and we're live from the BBC World Service.

I'm Leanna Byrne.

All eyes are on Lima, the capital of Peru, as the city hosts the 31st Asia-Pacific Economic Cooperation Summit.

But there's an interesting subplot, the deepening ties between Peru and China.

Later today, Chinese leader Xi Jinping and Peru's president, Dina Balarte, inaugurate the Chianghai port,

this new Chinese-funded megaport. I asked Peru's Alfredo Thornay, former Minister of Economy and Finance of Peru,

whether those investments come with any

geopolitical risks. Well, yes, there are, but my sense is that this approach of Peru with China

has been, how I say, extrapolated very fast. Let's take the port, for instance. The port of

Shanghai is going to move 1.3 million containers. We're going to

inaugurate eight ports, not only the port of Shanghai, and we're going to pass from moving

2.3 million containers to around 6 next year. The port of Shanghai is going to account only for

1.3. All the ports are going to account for the rest. So I don't think

it's only China, is that we are having other investors. The U.S. is going to have two ports,

and that's also going to change. The other key point is that what we export to China is mainly

minerals, rocks, no? And what Peru wants to do

is wants to jump into the supply chains of emerging Asia. And that's probably the main focus

of these APEC meetings of how do we link with Taiwan, with Singapore, and the other major Asian

economies that are much more

pro-manufacturing and that can bring value added to Peru that could be exporting to the US.

Peru today has 22 free trade agreements and that means that we have a very diversified source

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