A view of Lima, Peru Photo: VCG

 
China-Peru relations are set to be further strengthened, particularly in economic and trade ties under China's Belt and Road Initiative (BRI), according to Chinese and Peruvian analysts, as the Peruvian President Dina Boluarte is paying a state visit to China which began on Tuesday.

Experts highlighted the high level of complementarity and mutually beneficial cooperation between the two major trading partners, underscoring mutual respect as the cornerstone of the relationship between China and Peru, despite the external politically motivated attempts from the US aiming to disrupt relations.

This is Boluarte's first state visit to China. The five-day visit began with the delegation touring Shenzhen, the innovation hub located in South China's Guangdong Province, and then continues to Shanghai, the financial and trade hub. The tour concludes in Beijing for high-level meetings that will chart a promising course for future bilateral ties. The visit highlights the Latin American country's commitment to deepening comprehensive relations with China.

The presidential visit has a particular importance, both from short-term goals as well as the long-term bilateral ties, Juan Carlos Capuñay, former Peruvian Ambassador to China and Asia expert, told the Global Times on Wednesday.

Specifically, with respect to the short-term, it will lead to important outcomes ahead of the upcoming APEC Peru 2024 summit to be hosted in Peru's capital Lima in November as well as the expected inauguration of the Port of Chancay, after the APEC meeting, Capuñay said.

"From a long-term perspective, the visit will allow a special window to show the business opportunities in Peru," the former envoy said.

"The president will participate at the signing ceremony of the establishment of the China Peru Business Council, that will reunite the private sectors of both countries. Its functions will complement the bilateral promotional mechanisms that exists between the two countries," Capuñay noted.

During her visit to Shenzhen on Wednesday, the Peruvian president met with several major industry players such as Huawei and BYD to discuss potential cooperation in technology and the green economy. She will then travel to Shanghai, where she will hold talks with COSCO Shipping, a leading shipping conglomerate and main shareholder of the BRI landmark project - the Port of Chancay, according to media reports.

One of the goals of the presidential visit is to promote the upgrading of economic and trade cooperation between the two countries, according to experts and media reports.

During the visit, in addition to expanding traditional trade such as agricultural products to China as well as infrastructure development, there is a focus on attracting more Chinese investment into Peru, including for advanced technology, and the green and digital economies, Wang Youming, director of the Institute of Developing Countries at the China Institute of International Studies in Beijing, told the Global Times on Thursday.

China is Peru's largest trading partner and Peru ranks as China's fourth-largest trading partner in Latin America. Company representatives from the Peruvian delegation to China told media that the market share of Chinese automobiles in Peru has increased from 5 percent to 25 percent in the past five years.

More cooperation is set to take place. During the visit, the two countries will sign a range of agreements aimed at strengthening political dialogue, investment, technology transfer, tourism, and expanding Peruvian products' entry into the Chinese market, according to media reports.

One important highlight of win-win bilateral cooperation is the completion of the Chancay port project, which Capuñay described is "a significant initiative aimed at developing a national infrastructure system that will enhance national economic integration, regional and the world connectivity."

"The port project will serve as the primary logistical and operational hub for connecting South America with the Asia-Pacific region," the former envoy said, giving the example of how the port will help reducing the sea transportation time for cargo between South America and Asia, which will result in significant cost savings in shipping goods to and from China and other Asian countries.

The presidential visit also sent a clear message reflecting the determination of the South American country to deepen ties with China, a major trading partner, despite the intensified disruptive efforts from the US, experts said.

The US' consistent tactic involves politicizing and securitizing China's Belt and Road cooperation with Latin American countries such as Peru. The operation of the port has also drawn strong criticism particularly from the US, even claiming that the port serves military purposes, Wang said.

The visit of the Peruvian president reflects that the country has stood firm despite the US pressure, underscoring the continuous enhancement of strategic autonomy of the Latin American countries, Wang said.

"Also, the visit once again mirrors the recognition that cooperation with China is crucial for Peru and other Latin American countries to overcome economic challenges and escape the middle-income trap," the Chinese expert said.

As Peruvian Foreign Minister Javier González-Olaechea Franco stated in an interview with the Global Times in May that "it has been very clear to all of us that both our countries should support each other so that we can soon generate even more synergies in all economic sectors, whilst respecting each other's development models."

Wang said that the bilateral relations will come to a new level as the presidential visit embarks, charting course of a stronger bilateral ties between China and the Latin American country.