Insights丨Practical Peru-China economic and trade relations boost new engines of BRI cooperation: Peruvian scholar

By Xue Lingqiao

(ECNS) -- “The visit by Peruvian President will help to solidify the excellent state of relations between both countries and will contribute to increasing trade and investment,” said Carlos Aquino Rodríguez, director of the Centre for Asian Studies, at San Marcos National University in Peru in a recent interview with China News Network, while talking of bilateral relations between Peru and China.

President Dina Ercilia Boluarte Zegarra of the Republic of Peru is on her ongoing state visit to China from June 25 to 29. In the context, Aquino shared his opinions on Latin America-China relations, bilateral economic and trade cooperation, and other potential areas of cooperation.

Solid investment ties promise more economic and trade cooperation

“China has been Peru’s largest trading partner and one of its major foreign investors. More than 30 billion dollars have been invested by Chinese companies in Peru, an amount that makes Peru the second largest destination for Chinese currency in Latin America (the first is Brazil),” said Aquino, hailing the fruitful outcomes reached between the two countries in economic, trade cooperation, and investment.

Citing the country’s Chancay port project funded by China on the Pacific coast as an example, Aquino said that it will become South America’s most modern port after completion.

He also pointed out that the port will turn Peru into a trade hub in the region for trade and exchanges with China and the wider Asia. 

Aquino noted that the inadequacy of domestic savings has further highlighted the importance of foreign investment for his country, adding that foreign trade has become the growth engine of the Peruvian economy over last two decades.

“As Peru’s largest foreign trading partner and one of its major foreign investors, China’s contribution in these fields is of great importance for Peru,” Aquino stressed.

Belt and Road Initiative increases cooperation momentum 

“Trade and investment relations between Latin American and China is improving. Peru is a country in the region more linked with China in these fields,” said Aquino. 

He also noted that Peru, as one of the Latin American countries sporting a free trade area with China, has benefited significantly from the bilateral trade and investment cooperation. 

Talking about the prospects of the China-proposed Belt and Road Initiative (BRI)in the country and the continent, Aquino noticed that 21 countries in the region have already joined the Initiative. Judging from Peru’s experience, Aquino believes that these countries are poised to benefit from their relations with China.  

“China’s economy develops very fast. It has a fantastic network of roads, railroads, airports, and seaports that transport goods and people cheaper and faster,” said Aquino, adding that as a member of the BRI, Peru could expect more assistance from China’s expertise in infrastructure construction. 

“China is a leading country in the production of electric vehicles and solar panels. Big expectations are in Peru to benefit from China’s experience and advances in renewable energies. And I hope these technologies could also be adapted to Peru,” Aquino concluded.