Partnership with Peru features high degree of openness, bilateral investment set to rise
Editor’s Note:
Chinese President Xi Jinping arrived in Peru on Friday to attend the Asia- Pacific Economic Cooperation ( APEC) Economic Leaders’ Meeting and pay a State visit to the Latin American country. Global Times reporter Yu Xi ( GT) interviewed Vladimir Kocerha ( Kocerha), Economic and Commercial Counselor of Peru in Shanghai recently.
The China- Peru Free Trade Agreement officially entered into force on March 1, 2010, featuring wide coverage and a high degree of openness, according to China’s Ministry of Commerce.
More than 90 percent of goods traded between China and Peru enjoy zero- tariff status on a stage- by- stage basis.
GT: How do you see the current state of business relations between China and Peru?
Kocerha: This year is the 45th anniversary of the establishment of diplomatic relations between China and Peru. We always had a close relationship with China, especially because Peru has received the largest number of Chinese immigrants in Latin America. It is said that a large number of Peruvian people have Chinese ancestry.
Also, Peruvian President Pedro Pablo Kuczynski visited China in September. He made a point that it was his first foreign trip since taking office in July. Furthermore, President Xi Jinping’s visit to Peru signaled this is the best moment for China- Peru bilateral relations.
GT: How do you view Chinese investment in Peru? Do you think it will increase?
Kocerha: China has been the top investor in Peru for several years. Peru has a lot of resources to offer to Chinese investors. For instance, Peru is the world’s No. 2 copper producer as well as No. 2 silver producer. Many Chinese companies are looking for these commodities.
We have an open investment environment and we treat investors equally whether they are foreign or domestic. We don’t discriminate.
Also, Peru has had a very stable econ- omy for many years. Peru allows foreign investors to enter the country as long as they basically comply with our laws related to the environment, labor, taxes and the community. Chinese companies are doing well now in following the rules.
In order to encourage the execution of investment projects in Peru, the country also set up a special regime offering tax refunds for all of a company’s operations in Peru.
We have received a lot of Chinese investment in mining, fishery, banking and agriculture. Of course there will be more Chinese investment in Peru.
GT: What is the status of Peruvian investment in China?
Kocerha: Peru is at a different level of development in terms of expansion of internationalization of its companies in China. We are encouraging Peruvian companies to go abroad. Right now, China is also offering the same things such as a stable environment to foreign companies.
Peruvian companies have realized China is one of the friendlier countries for investment. For instance, several Peruvian companies recently have become very interested in opening offices here and bringing their products here.
In Shanghai alone, there are 20 companies owned by Peruvian citizens. Currently, Peruvian investors are investing in large Chinese cities such as Beijing, Shanghai and Guangzhou.
GT: Are there any challenges between the two countries?
Kocerha: I see challenges as we still have a lot of work to do. For instance, when Peruvian products such as fruits are shipped to China, we need to wait for the products and carry out a lot of other tasks.
GT: What will the two countries do to upgrade their partnership?
Kocerha: What I see is a lot of cooperation and understanding between Peru and China in the future. Many young Peruvians are also interested in China and are willing to learn Chinese. We expect more Chinese investors to enter Peru in the short term.