China's acquisition of exclusive operating rights at the port of Chancay in Peru is expected to make it a significant shipping hub for raw materials from South America to Asia. This has raised concerns in the United States about China's growing influence in the region.

South America is a crucial player in the global supply chain, accounting for 45 percent of agricultural products traded worldwide. The region's key exports, such as meat and soybeans, are essential for meeting the needs of China's expanding population.

Moreover, Chile and Peru, the world's largest copper producers, hold 40 percent of global copper reserves and two-thirds of known lithium reserves, making the region rich in essential minerals for the energy transition.