Why Peru wants to shift its relationship with China beyond raw mineral supplies
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- Peru seeks to deepen its economic ties with China beyond raw mineral exports to mitigate trade risks.
- The country aims to attract investment in infrastructure and diversify its economy.
- While benefiting from high commodity prices, Peru recognizes the long-term unsustainability of its current export model.
Peru is looking to evolve its economic relationship with China, moving beyond a heavy reliance on raw mineral exports. Ambassador Carlos Vasquez stated that the nation aims to enter a new phase of trade, focusing on attracting investment in infrastructure and diversifying its economy.
Currently, Peru's exports to China are dominated by a few key products, including copper, iron, and fishmeal, which account for over 90% of the trade. While high global demand for these commodities has benefited Peru's economy, Vasquez noted that the country does not control the prices, which are set by foreign markets.
we don’t determine the price, the price is determined by some foreign markets
Despite Peru's economy growing by approximately 3% last year and projected to increase by 3.6% this year, driven by strong mineral demand, Vasquez cautioned that this situation is not sustainable in the long term. The ambassador emphasized the need for a more balanced and resilient economic partnership with China.
not sustainable in the long term
DistantNews Editorial
Originally published by South China Morning Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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