Peruvian President Ollanta Humala concluded a five-day visit to the People’s Republic of China after meeting with Chinese Prime Minister Li Keqiang and representatives of top corporations on Monday. The objective of the meetings is to boost bilateral relations and attract strategic Chinese investments in Peru.
China is Peru’s main source of foreign investment, and the two countries signed a Free Trade Agreement on April, 2009. For Peru, increasing trade with China is a key way of diversifying its export economy. For China, Peru is an important source of minerals, primarily copper. Noting the mutual interests of the two countries, Li Keqiang called on the Peruvian leader to enhance collaboration in fields such as trade and investment, finance, infrastructure, technology and human resources.
Peru still has a lot of room to grow in terms of non-traditional exports such as squid, grapes, seaweed, wood, liver and frozen foods. According to the Chamber of Chinese-Peruvian Commerce (Capechi), Peruvian exports to China are expected to increase by 25 percent in 2013. China’s growing demand for energy has led to plans to build and operate a natural gas pipeline—the Southern Peruvian Gas Pipeline—which will provide gas to Cusco, Arequipa, Puno, Moquegua and Tacna.
A stronger partnership with Peru is part of a greater Chinese effort to consolidate its presence in Latin America. During his tour through Brazil, Argentina, Uruguay and Chile in 2012, former Chinese premier Wen Jiabao advocated for the creation of a China-Latin America cooperation forum, a platform to improve market conditions and increase political trust between China and Latin American nations. Today, China is the leading commercial partner of Brazil, Chile, Peru and Argentina; and the second of Costa Rica, Mexico and Uruguay.