Peru and China will soon sign an enhanced free-trade agreement during Chinese President Xi Jinping’s visit to Peru. The “optimised” trade agreement, initially signed in 2009, will be joined by 30 other cooperative accords, each aimed at boosting economic ties and cooperation between the countries. Peruvian Foreign Minister Elmer Schialer stated that the updated deal could increase trade by at least 50%, underscoring China’s role as Peru’s main trading partner.
Chinese Investment In Peruvian Infrastructure And Technology
President Xi will arrive with a 400-member delegation of Chinese business representatives interested in Peruvian infrastructure and technology sectors. With bilateral trade nearly reaching $36 billion last year, both nations are set to deepen economic cooperation, with significant investment potential in mining and infrastructure projects. One of China’s largest ventures in Peru, the Chancay mega port by Cosco Shipping Port, is expected to transform Peru’s trade capacity.
“This port will take Peru to another level of trade,” Schialer said. The port’s “virtual” inauguration, overseen by President Dina Boluarte and Xi from the government palace in Lima on Nov. 14, marks a key milestone in China’s growing investment presence in Peru.
Peru’s Mining And Infrastructure Portfolio Draws Chinese Interest
China’s interest in Peru extends to a vast portfolio of projects, with $54 billion in mining ventures and $157 billion in infrastructure developments awaiting further investment. Schialer noted that China is particularly keen on these projects, reflecting a shared interest in expanding Peru’s infrastructure and resource potential. These projects align with China’s broader goal of increasing its economic influence in South America.
Peru’s Steady US Ties Amid Enhanced China Partnership
While strengthening ties with China, Peru also expects a continued US investment presence, especially with the recent election of US President-elect Donald Trump. Schialer expressed confidence in ongoing US-Peru economic relations, noting positive signals from both the outgoing and incoming US administrations.
As Peru and China prepare to sign this upgraded free-trade agreement, the two nations are set to build on their already robust economic partnership, creating new opportunities in trade, infrastructure, and beyond.
(With Inputs from Reuters)
