Tonight, thousands of miles from its own borders, China's presence in the Pacific is expanding and getting closer to the US. China's Costco shipping is building its first deepwater megaport in South America, an economic beachhead for Beijing in America's backyard. Does it make you proud that this is happening.

In Peru? Yes, absolutely. It's a port that will change a lot of lives in Peru.

Chinese companies may soon own Lima's entire electricity grid, as well as five mines. Do you think America failed to see the opportunities here? I think.

There are many opportunities now for everyone to try to make business in Peru. We were.

Given extensive access to this massive new site, the signs in Spanish and Mandarin, $3.6 billion of investment next to a fishing village called Changai, 60% owned by Costco Shipping, a company backed by the Chinese State. The deputy general manager telling me the port will become a major trading hub, boosting the region's international exports. These docks will handle the world's biggest cargo ships. A million containers a year, they say, growing to five million in time, and a new route across the ocean connecting South America and Asia from Shanghai to Shanghai. Reshaping Pacific trade. It currently takes up to 35 days to ship goods from to Asia, stopping at Mexico or Long Beach, California. Ships from Shanghai will be large enough to sail directly, cutting the time it takes by 10 days or more. China has overtaken the US as Peru's biggest trading partner. In Shanghai, China simply made the best offer.

They say. We need this investment.

Whether it comes from China or wherever.

What it comes according to the interest of Peru and the people of Peru.

Not every Peruvian is benefiting. For months, thousands who live near the ports have faced this.

The explosion for the mountain tunneling is near my house.

Explosions flattening the terrain have caused many houses to crack. Marion Grace Archey can see the construction site from her artist's studio in her family home. Dust is everywhere. It's hard to have a conversation because it's so noisy. Sorry. It's not the only hurdle the project has faced. This is the tunnel.

That will be the main connection between the entrance complex and the terminals themselves. The idea is to have the less impact to the city.

The construction of the more than a mile long tunnel for port access led to the partial collapse of a street last year. Local community leaders tell us they fear their homes are no longer safe. Around the world, like here in Athens, Costco shipping operates in 144 countries. But unlike the US, China only has one overseas military base in Jebutie, where we visited in 2021. It's a Chinese fort. Back in Peru, officials say they're not married to China, but are developing a good relationship. Some in the US worry where that relationship will go. Could we one day see a ship from the People's Liberation Navy docking this port?

Well, this port is orientated to commercial activities.

Not everyone here is so confident.

I'm worried about the conflicts could be in the USA and the China. So we are in the middle of.

This conflict. Kierre Simmons, BBC News.

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