Cross-Pacific handshake against geopolitical turmoil

Editor's note: Fu Liyuan, a special commentator on current affairs for CGTN, is a research assistant in the Department of Latin American and Caribbean Studies of the China Institute of International Studies (CIIS). The article reflects the author's opinions and not necessarily the views of CGTN.

Peruvian President Dina Ercilia Boluarte Zegarra started her five-day state visit to China this week. She is the first Peruvian leader to visit China in eight years. Following her first stop in Shenzhen in south China's Guangdong Province, Boluarte will travel to other Chinese cities including Shanghai, and Suzhou in east China's Jiangsu Province as well as Beijing.

China and Peru established diplomatic ties on November 2, 1971. Now, as comprehensive strategic partners, China-Peru bilateral cooperation is gaining momentum in an unprecedented way. Boluarte's visit to China marks a milestone in China-Peru cooperation, not only because it is expected to deepen bilateral political trust and elevate economic cooperation, but it also demonstrates that this friendship can stand the test of geopolitical turmoil in an era of uncertainty.

Peru is now the fourth largest trading partner to China among Latin American countries. Following the seventh round of Free Trade Agreement (FTA) negotiations this month, China-Peru trade is picking up steam. According to Latin American magazine América Economía, Peruvian exports to China exceeded $25 billion in 2023, with a $13 billion trade surplus, a great leap in comparison to 2008 that totaled only $3.55 billion.

The fact that Peru's economic prospects are bouncing back also adds up to the optimism. The Central Reserve Bank of Peru raised its economic growth forecast for the nation from 3 percent to 3.1 percent this week.

China has been Peru's main trading partner for years, with Peru's copper, silver, zinc and iron well-received products in the Chinese market. Peru also boasts a notable presence in Chinese markets with products like fishing and agricultural products, textiles and chemicals. Apart from that, Chancay Port Complex megaproject, sponsored and constructed mainly by Cosco Shipping, is one of the signature projects in Latin America under the Belt and Road Initiative, with plans for its inauguration in November. Once completed, the travel time by sea between Chancay and Shanghai will be shortened to around 20 days, making it a new cross Pacific shipping artery.

It is inevitable that bilateral cooperation that carries such strategic weight attract doubts and even interference. The U.S. government has reiterated its concerns about the Chancay Port complex. U.S. Southern Command General Laura Richardson's rhetoric this May has made the U.S. point clearer: China's presence in South America's strategic port poses a major concern for Washington. Such mentality dates back to the Donald Trump administration, where the U.S. unveiled its intention of strategic competition against China.

Latin America, even though having been marginalized from U.S. foreign policy since the Cold War period, stands out as a new battlefield due to its geopolitical adjacency to the U.S. territory. With the traffic through the Panama Canal reduced by 40 percent in recent years as a result of climate change, American elites are constantly on the alert about China-Latin America cooperation.

Building a mega port has been in the core interest for the Peruvian government, as it will help extend Peru's trade circle to the Asia Pacific region. In response to U.S. concerns, Peruvian Foreign Minister Javier González-Olaechea said if the U.S. is concerned about China's expanding influence in Peru, then it should step up its own investments, adding that "everyone is welcome" to invest. U.S.-funded projects are present all over the world, but not so much in Latin America. "It's like a very important friend who spends little time with us," González-Olaechea said.

Despite disputes and interferences, shared values and interests have brought China and Peru closer. To Peru, solid bilateral cooperation with China means economic and trade growth, globalization of local industries, more jobs and better lives. To China, cooperation helps to expand its footprint and better connect Chinese enterprises in the Latin American market.

China and Peru cooperation still has untapped potentials. On Peru's way to meet its green development goals, Chinese companies such as JAC Group and China Yangtze Power Co. Ltd can continue to help Peru fulfil its goals. This November, Peru will be hosting for the third time the Asia-Pacific Economic Cooperation (APEC) summit, organizing more than 160 seminars, where Peruvian and Chinese companies can cooperate in terms of technology, logistics and so forth.

Boluarte's visit is an opportunity that cannot be missed to enhance cooperation between China and Peru, which is in the interests of not only the two countries, but the rest of the world.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on Twitter to discover the latest commentaries in the CGTN Opinion Section.)