A view of the Chancay Port in Chancay, Peru, November 12, 2024. /CFP
A quiet revolution is underway in the bustling port city of Chancay in Peru. Over the past two years, this once-overlooked coastal town has transformed into a regional transportation hub.
Due to China's investment, Chancay is now home to a high-tech megaport equipped with unmanned cranes and 5G technology. When operational, the port will accommodate the world's largest cargo ships, handle up to 1.5 million twenty-foot equivalent units (TEUs) annually and significantly reduce shipping times. The first phase of the project will reduce the sea shipping time from Peru to China to 23 days, cutting logistics costs by at least 20 percent.
The port will not only benefit Peru but also serve as a regional logistics hub for all of Latin America. Businesses from countries such as Brazil, Venezuela, Bolivia, Paraguay and Argentina will rely on the port as a key departure point for trade with Asia.
Yet, Chancay is just one piece of a much larger puzzle. Across continents, China is deepening its engagement in global industrial cooperation, promoting free trade and investment, and pushing to establish an open world economy.
For example, one of China's global trade strategies is signing free trade agreements (FTAs) with other countries. Data from the commerce ministry shows that as of the end of April, China has inked FTAs with 29 countries and regions, covering continents from Asia and Oceania to Africa and Latin America. In total, trade with these partners accounts for roughly one-third of China's foreign trade.
The numbers tell a compelling story. In 2022 alone, trade volumes with FTA partners surged by 8 percent, outpacing China's overall trade growth of 7.7 percent. For countries like Chile and New Zealand, these agreements have unlocked opportunities for goods ranging from cherries to dairy products, which now enjoy tariff-free access to Chinese markets.
"The signing of FTAs allows the ever-expanding Chinese market to be shared globally. This facilitates the complementary advantages of resources among participants, making it one of the key drivers of global economic growth," said Wang Yong, a professor at Peking University's School of International Studies.
The construction site for a Chinese battery manufacturer CATL plant near Hungary's second-largest city, Debrecen, May 5, 2024. /CFP
China committed to facilitating open markets
Beyond FTAs, the Belt and Road Initiative (BRI) is also one of China's global projects to promote economic growth and connectivity among participating countries. Since its inception, over 150 countries and 30 international organizations, primarily from the developing world, have signed cooperation agreements with China.
By constructing key infrastructure, such as railways, highways, ports, power grids and communication networks, the BRI has significantly improved infrastructure in developing nations, boosting trade efficiency and facilitating industrial upgrades. The initiative has also generated substantial employment opportunities and economic growth while enhancing sustainable development through technology transfer and capacity building, making a lasting contribution to inclusive global economic progress.
In Europe, Hungary has emerged as a key beneficiary. Over the past two years, Hungary has attracted more than 25 percent of all Chinese investments in Europe, primarily in the electric vehicle and info-communications sector. Companies like CATL, the world's largest EV battery manufacturer, are setting up plants in Hungary, creating jobs and bolstering the country's economy. According to Hungary's official statistics, China's direct investment in Hungary reached 7.6 billion euros (about $8 billion) in 2023, accounting for 58 percent of Hungary's total foreign direct investment.
China also initiated the Asian Infrastructure Investment Bank (AIIB) as an open and inclusive platform for international financial cooperation. Official data shows that since its inception, AIIB has financed over 200 projects in sectors like transportation, energy, water management and urban development in more than 30 countries, with a total investment exceeding $40 billion.
By providing stable, long-term funding, the AIIB has improved infrastructure, supported green energy transitions, addressed climate change in developing countries and contributed to a fairer and more equitable global economic system.
As global trade faces headwinds from protectionism and geopolitical tensions, China remains steadfast in its mission to facilitate open markets.
In October 2024, during the World Trade Organization (WTO) General Council meeting held in Geneva, Switzerland, China proposed new guidelines to reduce non-tariff barriers to facilitate global trade. These guidelines focus on enhancing transparency, streamlining import licensing procedures and harmonizing technical standards among member countries. The proposal has garnered support from various WTO members, who view it as a constructive step toward promoting a more open and efficient global trading system.
"China's vision is not just about connecting supply chains but about bridging gaps between continents, economies and people," said Wang.
(Cover image: The Yangshan deep-water port in east China's Shanghai Municipality, October 18, 2024. /CFP)