Chinese president Xi Jinping and Peruvian president Dina Boluarte have inaugurated a US$1.3 billion port that could transform South American trade with Asia, reports Bloomberg.

The two leaders officially opened the facility during an event at Government Palace in Lima that featured a video link to Chancay port some 60 kilometres to the north.

President Xi, who is in Peru to attend the Asia-Pacific Economic Cooperation forum, said the facility will establish a direct line from Chancay to Shanghai, reduce shipping times and lower logistics costs.

Ministers from both countries also signed a slew of agreements including upgrading a free-trade pact, boosting investment and strengthening cooperation under China's Belt and Road Initiative.

President Xi is using his trip to the APEC forum and then Group of 20 summit in Rio de Janeiro to portray himself as a champion of globalization in the face of President-elect Donald Trump's protectionist approach to trade.

The Chinese president is leading a delegation of about 400 people, including the minsters of finance and commerce, and businesspeople from more than 50 companies.