Chongqing - From November 14 to 17, Chinese President Xi Jinping attended the 31st APEC Economic Leaders' Meeting in Lima and conducted a state visit to Peru. On November 15, China and Peru signed a protocol to upgrade the bilateral free trade agreement in Lima, the Peruvian capital, according to China's Ministry of Commerce (MOC).

According to the MOC, the protocol aims to improve provisions on rules of origin, customs, intellectual property, and trade in services while introducing five new areas: standards and compliance, competition policy, e-commerce, global supply chains, and environment and trade.

This highlights the potential for Chinese enterprises, including those from Sichuan and Chongqing with an existing presence in Peru, to explore further opportunities in the Peruvian market.

Mutual collaboration in healthcare, NEV, and agriculture

SWS Hemodialysis Care Co., Ltd., a Chongqing-based medical equipment manufacturer, partners with Peruvian agents to provide dialysis services for renal failure patients at local centers using its equipment.

In Peru, patients with kidney failure are undergoing dialysis treatment using the SWS-4000A Hemodialys Machine. (Photo/SWS)

According to SWS representatives, SWS plans to leverage the upgraded free trade agreement to conduct market research and understand local customer needs and objectives.

For example, the upgraded agreement allows for the inclusion of a fast-track entry process for business personnel under the temporary entry provisions. This facilitates SWS's in-person communication and engagement with clients in Peru.

New energy vehicles (NEV) are another key area of collaboration between China and Peru, driving global industry development. Changan Automobile, a leading NEV company from Chongqing, has expanded its presence in Peru, with Inchcape Peru managing the sales of Changan models in the local market.

Erik Mitsuo, General Manager of Inchcape Peru and Changan Automobile Peru, stated that Changan Auto plans to introduce NEV models to the Peruvian market. Mitsuo further noted that Peru is expected to improve its infrastructure in the coming years, focusing on pollution reduction, which will be key for Changan Auto's involvement in the country's transformation.

At Changan Auto's sales outlet in Peru, staff are selling Changan models. (Photo/Inchcape Peru, Changan Automobile Peru)

Tara, a leguminous plant native to Peru, is used in food, cosmetics, and pharmaceuticals. According to a representative from Sichuan Tingjiang New Material, Inc., the company has invested USD 9.35 million in Peru to establish an agricultural cooperation demonstration zone.

Tingjiang operates two tara plantations and a processing plant, planting 339,000 tara trees annually, which produce 14,000 tons of tara powder and 1,500 tons of tara gum.

Chancay Port boosts logistics for enterprises

The inauguration ceremony of Chancay Port on November 14, as a flagship BRI project, will enhance trade efficiency between Peru and Asia, cutting shipping times to China to 23 days and reducing logistics costs by at least 20 percent, according to Xinhua.

According to a representative of Sichuan Tingjiang New Material, Inc., the company's investment in Peru focuses on planting Tara trees and processing primary products of Tara, which are then sold locally and globally.

At Tingjiang's tara processing plant, workers are handling freshly harvested tara pods. (Photo/Tingjiang)

The sale of Tara products necessitates more efficient logistics. However, a representative noted that Peru's existing logistics infrastructure is inadequate, with low port efficiency and long shipping times to destinations such as China.

The opening of Chancay Port is expected to improve Peru's logistics efficiency. "Chancay Port employs comprehensive automation technology, offering higher efficiency and shorter shipping times, saving 1-2 weeks on routes to China, which will help us better connect with and serve customers worldwide."

SWS representatives explained that their equipment is usually shipped to Lima. Chancay Port is located north of Lima, and its opening provides nearby cities with a shorter, more cost-effective route, lowering shipping costs for customers in northern Peru and enhancing bilateral trade opportunities.

Erik Mitsuo, General Manager of Inchcape Peru, Changan Automobile Peru stated, "I think Chancay is another option for us, of course we need to evaluate deeply."