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Peru PM: Increase in China's investment will not cause US resentment

Posted to Maritime Reporter on June 17, 2024

Prime Minister Pereira said that the Peruvian government did not anticipate "resentment from the United States" over the upcoming visit of President Dina Boluarte in China, or the increased investments made by Chinese companies in the Andean country.

Boluarte is scheduled to visit Beijing by the end of the month. He will meet with his counterpart Xi Jinping, as well as representatives from Chinese giants like Huawei and BYD. This comes at a moment when Chinese investments, which have increased in the past few years, are causing concern among Western nations.

At a press briefing, Prime Minister Gustavo Adrianzen stated that he did not think his friends - like the United States - would feel resentful about our bringing Chinese investment (to Peru).

He added, "We think this is an open invitation to Western capital, including that of the United States."

Boluarte will meet Xi in Beijing on 28 June, but first he'll sit down with Cosco Shipping Ports executives. Cosco is leading the construction of Chancay Megaport which is destined to become a hub for Asia and South America.

Xi is expected to attend the port's inauguration, which will take place in November when the Asia-Pacific Economic Cooperation Forum Leaders Summit (APEC) will also be taking place in Peru.

The Chancay Port, worth $3.5 billion, has attracted interest from Brazil for exports to Asia. It has also become the poster child of the challenge facing the U.S.

MORE CHINESE INVESTMENT

Boluarte will also be meeting with Jinzhao Mining, and the infrastructure group China Railway Construction Corp.

Adrianzen said that the proposal from a decade ago to build a railway line to connect Peru with Bolivia, and then Brazil to boost Chancay's exports should be brought back to the table.

Analysts say that Brazil could significantly reduce shipping times for key exports like soybeans and beef, which are currently transported through the Panama Canal.

Prime Minister said that the "Bi-Oceanic Rail" might not be realized in the near future, but it could happen "as megaports are developed" over the medium to long term.

Adrianzen stated that Bolivia and Paraguay were also interested in exporting goods through Peru.

When the two met in September, Boluarte said that the president of Paraguay Santiago Pena had "asked Boluarte to ensure that exports from Paraguay to Asia depart from the Chancay port".

China is Peru’s biggest trading partner. More than a third ($65 billion) of Peru’s exports went to China last year. (Reporting and writing by Marco Aquino, editing by David Gregorio).