LIMA -- Chinese President Hu Jintao arrives in Peru on Wednesday for the final stop in a three-nation swing through Latin America that has underscored the Asian giant's growing clout in the region.

Following stops in Costa Rica and Cuba, Hu will meet with Peruvian President Alan Garcia, host of this weekend's summit of leaders from the 21 countries of the Asia-Pacific Economic Cooperation forum.

Hu's trip comes as China -- which has dramatically stepped up its economic and political diplomacy worldwide -- sets its sights on the emerging economies of Latin America.

While in Peru, Hu was expected to finalize a bilateral free trade agreement, after launching talks on a similar pact in Costa Rica.

Trade between China and the region remains relatively small but is growing rapidly.
China's state-run Xinhua news agency reported this month that exports to Latin America grew 52 percent in the first nine months of 2008 to $111.5 billion.

China has been aggressively seeking new sources of energy, minerals and other raw materials, with Latin America coming into focus as potential key new supplier.

Hu, in an interview this week to Peru's El Comercio newspaper, hailed the growing trade.

Hu also welcomed that "a number of Latin American and Caribbean nations have offered their understanding and support to China regarding Taiwan and Tibet, giving warm backing."

Hu enjoyed a warm welcome both in Communist Cuba and democratic Costa Rica and that looked to continue in Peru.

Peru's opposition La Republica newspaper even devoted nearly the entire front page of its Wednesday edition to a photo of Hu under the Chinese characters for "welcome".

By contrast, when US President George W. Bush arrives later in the week, he was expected to be greeted by protesters who blame Bush policies for causing the world's economic troubles.

Protesters in Lima on Wednesday held a demonstration dressed in orange prison suits to denounce the US "war on terror" detention camp at Guantanamo Bay, Cuba. President-elect Barack Obama has vowed to close the camp.

The welcome mat for Hu is fueled in part by hope in the region that increasing engagement with China could help blunt the effects of the global financial crisis.

During his current trip, Hu has demonstrated the ability of China -- with its $1.9 trillion in foreign exchange reserves -- to play that role.

In Cuba, he brought millions of dollars in aid and promises of closer future trade ties.

In Costa Rica, besides the free trade talks, Hu and President Oscar Arias signed a number of business deals including a joint venture in which China will help modernize Costa Rica's state-owned oil refiner.

Hu's travels also symbolize China's rising influence in a region long considered a diplomatic stronghold of Beijing's rival Taiwan.

Costa Rica last year became the first Central American country to break off Taiwan ties in favor of China, a step that led to the bilateral free-trade talks.

China has steadily won over former Taiwan allies over the years as its growing economic and diplomatic clout trumps Cold War alliances.