'Neighbors' across Pacific: China, Peru exemplifies win-win spirit

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"From Chancay to Shanghai, the Belt and Road Initiative is bearing fruit in Peru before our eyes. A new Asia-Latin America land-sea corridor for the new era is taking shape," said Chinese President Xi Jinping at the inauguration ceremony of Chancay Port via video link from the Presidential Palace in Lima on the evening of November 14. President Xi stated that Chancay Port is becoming "a new starting point of an Inca Trail of the New Era."

This marks President Xi's second state visit to Peru and his third meeting with Peruvian President Dina Boluarte in the past year. The two heads of state jointly participating in the inauguration ceremony of the port stands as a highlight of the visit and symbolizes the enduring friendship between China and Peru.

More than 500 years ago, the Inca ancestors of modern-day Peruvians, undaunted by challenges and dangers, scaled towering mountains and rugged ridges to build the Inca Trail, which runs through the Andes from north to south. Today, as a landmark project of the Belt and Road cooperation between China and Peru, Chancay Port injects new energy into this historic route, opening new avenues for Peru's progress as a coastal nation.

Located about 80 kilometers north of Lima, backed by the South American continent and facing the Pacific Ocean, Chancay Port is a deep-water port of strategic importance. With construction of the first phase initiated in 2021, the port is designed to accommodate mega container ships with a capacity of 18,000 TEUs (twenty-foot equivalent units), or an annual handling capacity of 1 million TEUs in the near term, with a future expansion goal of 1.5 million TEUs. This will solidify Peru's role as a crucial land-sea gateway connecting Asia and Latin America.

In Spanish, the pronunciation of "Chancay" is similar to that of "Shanghai," making "from Chancay to Shanghai" a catchphrase that embodies people's expectations for this new land-sea corridor bridging Asia and Latin America in the new era. Zhou Zhiwei, a research fellow at the Institute of Latin American Studies, Chinese Academy of Social Sciences, stated that this new positioning reflects the shared understanding between China and Peru of the emerging dynamics of global economic growth and Peru's enthusiasm to connect with the vast market of China, the most vibrant market in the Asia-Pacific region.

This new positioning highlights two important aspects. First, Chancay Port is a golden port. It can reduce one-way shipping time between Peru and China to 23 days, cutting logistics costs by over 20 percent. This is projected to generate annual revenue of $4.5 billion for Peru and create more than 8,000 direct jobs. Furthermore, Chancay Port is directly connected to the Pan-American Highway via tunnels, linking it to Lima and providing a broad network that reaches other parts of Peru and other Latin American countries. This connectivity promotes the development of an integrated, multimodal, and efficient transport network spanning from coastal areas to inland regions and from Peru to other parts of Latin America. It also contributes to the broader development and integration of the Latin American and Caribbean region.

Second, Chancay Port is a green port. An animal rescue center was established in the port area to improve the environment of wetlands, beaches, and habitats, contributing to the sustainable economic and social development of the local community. This demonstrates that Chancay Port is not only a new starting point of the Inca Trail of the New Era but also a foundation for a better life for people in Latin America. As local residents have said, "A brighter future lies ahead."

Beyond the opening of Chancay Port, President Xi's visit to Peru also witnessed several other milestones in bilateral cooperation, including the signing of a cooperation plan under the Belt and Road Initiative and an upgraded free trade agreement protocol. A joint statement was issued outlining plans to deepen the comprehensive strategic partnership between China and Peru.

President Boluarte remarked that President Xi's visit will undoubtedly become a historic milestone in bilateral relations, opening a new chapter in the Peru-China comprehensive strategic partnership. This partnership aims to bring about a more enduring and prosperous future for both nations and foster a community of shared future between Peru and China.

This evaluation takes on greater significance when placed in a global context. As the world undergoes profound changes unseen in a century, global governance systems are being reshaped. While China is advancing its unique path to modernization, Peru has formulated a series of development plans focused on energy transition and industrial upgrading. Both countries share a desire to address global challenges and pursue mutual development, and both advocate multilateralism and oppose protectionism.

From a broader perspective, as key emerging Pacific-rim economies and vital members of the Global South, China and Peru share a common interest in enhancing pragmatic cooperation. This aligns with the shared aspirations of developing countries and contributes to their collective development.

President Xi emphasized three key strategies for enhancing China-Peru cooperation: strengthening trade and investment as twin drivers of growth, advancing traditional and emerging industries to achieve balanced progress, and integrating industrial and supply chains to foster greater connectivity.

Analysts note that these strategies point to the essence of China-Peru economic cooperation and provide guidance for aligning development strategies, unlocking cooperation potential, and building a new framework for partnership. They will also help Latin American countries seize opportunities in the new wave of technological revolution and identify areas of growth.

In the area of green technology, for example, Chinese electric vehicles are gaining popularity and playing a role in Peru's green transition. Renewable energy projects, such as the Repartición solar power plant and the Marcona wind farm, funded by Chinese enterprises, have significantly contributed to local efforts to cut emissions. Juan Carlos Castro Vargas, Peru's Minister of the Environment, stated that strengthening green cooperation between Peru and China is of great significance and that Chinese green technologies are pivotal in helping Peru achieve sustainable development.

The signing of a protocol on upgrading the bilateral free trade agreement between the two countries marks another milestone. The updated agreement refines chapters on rules of origin, customs procedures, and trade facilitation while adding five new chapters on standards and conformity assessment cooperation, competition policy, e-commerce, global supply chains, and environment and trade. Analysts believe these updates reflect the trends of the digital era and will help standardize and streamline bilateral cooperation, create a better business environment for enterprises in both countries, and deliver greater benefits to the people.

As an old Chinese saying goes, "Nothing can separate people with common goals and ideals, not even mountains and seas." The remarkable outcomes of President Xi's visit to Peru included but were not limited to the opening of Chancay Port and the upgraded free trade agreement. This visit also advanced dialogue and cooperation in education, culture, and tourism while advocating multilateralism. It deepened the traditional friendship between China and Peru, expanded opportunities for cooperation and mutual benefit, enriched bilateral relations with new meaning in the new era, and injected fresh momentum into China-Latin America cooperation and the broader development of the Global South. As "neighbors" across the Pacific, China and Peru continue to exemplify the spirit of "close neighbors who cherish and support each other."

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