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 China-controlled megaport, built by Cosco Shipping Ports (1199.HK), opens new tab and located on Peru’s Pacific coast north of Lima, has already drawn $1.3 billion in Chinese investment for its first phase, with billions more expected as Beijing and Lima look to turn Chancay into a major shipping hub between Asia and South America.