China and Peru agree to forge stronger economic and tech ties - starting with Chancay port

Chinese President Xi Jinping and his Peruvian counterpart Dina Boluarte have agreed to strengthen economic and technology ties between their two nations, including joint efforts in building a Pacific trade hub.

As part of Boluarte's first state visit to China, the two leaders signed a joint action plan in Beijing on Friday to deepen cooperation on trade, the digital economy and scientific and technological innovation.

The two countries also announced the official conclusion of negotiations on upgrading their free-trade agreement, a process started in 2018.

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In talks on Friday, Xi said cooperation between the two countries had yielded "fruitful results" in a range of fields, and he looked forward to further synergising China's Belt and Road Initiative with Peru's development needs.

"We welcome more high-quality Peruvian products to enter the Chinese market and hope Peru will provide a good legal and policy environment for Chinese companies to invest and have long-term cooperation in Peru," state broadcaster CCTV quoted him as saying.

"Both sides should work together to ensure that the Port of Chancay is completed as scheduled and it becomes a new land and sea channel between China and Latin America."

He also called for more coordination with Peru to promote "an equal and orderly multipolar world and inclusive economic globalisation" for nations in the Global South. Xi also pledged support for Peru's chairmanship for the Apec forum in November, a gathering that he is expected to attend.

CCTV quoted Boluarte as saying that she had discovered a lot of areas of cooperation during her visit to China. She said Peru was willing to provide a good business environment for Chinese companies and looked forward to the completion of the Chancay port, which is expected in November.

Earlier Boluarte also met Premier Li Qiang and Zhao Leji, chairman of the Standing Committee of China's National People's Congress.

The Peruvian president arrived in Beijing on Thursday night after visiting Shenzhen and Shanghai as part of a broader bid to attract more Chinese investment. She is accompanied on her weeklong trip by 17 cabinet ministers.

Peru is a major destination for Chinese investment under the Belt and Road Initiative, with the flagship Chancay port under construction near Lima to serve as a major trade hub connecting Latin American and Asia.

In Shanghai, Boluarte told around 250 Chinese and Peruvian businesspeople at an investment forum that her nation was looking into the possibility of turning the port into a special economic zone, with tax benefits for investors there.

The US$1.3 billion scheme is being built by state-owned Chinese shipping firm Cosco, and it is expected to help cut shipping time from Shanghai to Peru to 23 days from the 33 it takes now.

But it has been a source of controversy amid the intensifying US-China rivalry, with Washington expressing concern that it would be converted to military use and boost Beijing's influence in the US' backyard.

In March, Peru reportedly threatened legal action against Cosco over its business model for the port - only to withdraw the lawsuit days before Boluarte's trip to China.

Meeting Cosco chairman Wan Min in Shanghai, Boluarte assured Cosco her country had "legal, social and political stability" to protect its investments. She also confirmed that Xi would attend the opening of the port in November.

In Shenzhen, Boluarte met Wang Chuanfu, head of electric car maker BYD, and pitched the idea of an EV production plant near the Chancay port with the offer of zero tariffs.

In addition, Huawei Technologies, which is also headquartered in Shenzhen, signed an agreement to help Peru train thousands of its citizens in new technologies, especially in artificial intelligence.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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