The Chinese company COSCO, a leader in port terminals management has purchased Chancay terminal (60 percent stake) in the north of Lima.
This is the first operation in Latin America for COSCO, the company is already active in most continents and in particular in Europe through the port of Piraeus.
New Chinese investments in Peruvian infrastructure may be planned as Peru and Bolivia expand their rail links. Mineral production from Bolivia may be then exported to China through Peruvian ports.
China and Peru are also negotiating new trade agreements. In 2010, the two countries had signed a free trade agreement; a new, more advanced version of this agreement is expected to be implemented in 2020, before the end of the term of President Martin Vizcarra of Peru. This next agreement could help facilitate Chinese investment in Peru.
China, became 2011, the first economic partner of Peru ahead of the United States thanks mostly to mineral imports. In June 2018, the Chinese mining giant Chinalco began the expansion of Toromocho copper mine, owned by the group since 2007.
The Peruvian government rejected American warnings about the “Belt and Road Initiative” and considered China as a “good trade partner“.
Peru’s objective today is to diversify its exports to China in sectors other than mining, and in particular in agriculture by developing trade of coffee and alpaca to the Chinese market.