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, a $1.3 billion investment by Beijing as it seeks to expand trade and influence on the continent.

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.

China and Peru should align development strategies, and further tap the potential for cooperation, to open up new prospects for pragmatic cooperation, Chinese President Xi Jinping said on Thursday when holding talks with Peruvian President Dina Boluarte in Lima,