Boluarte will be the first Peruvian leader to visit the Andean country's main trading partner in eight years, and she does so in the aftermath of the Chancay megaport inauguration.
Dina Boluarte, the controversial president of Peru, will resume international travel at the end of this month. Without a vice president and protected by a contentious law that allows her to exercise power from abroad, this time Boluarte will visit China from June 23 to 29. Her time in the Asian superpower will not be a coincidence; state visits to Beijing usually coincide with international events where Xi Jinping participates. In this case, Peru will organize the annual edition of APEC in November and the Chinese president will be one of the first-line guests.
According to a recent survey by consulting firm Datum, Boluarte boasts a citizen approval rating of 5% among Peruvians, a figure explained by accusations of police repression, corruption and mediocre economic management. In this context, presidential trips abroad have usually come under fire for their high cost and little use to a misguided government.
However, China is a separate matter. Its role as Peru's largest trading partner and protagonist of million-dollar investments in the Andean country gives an additional shine to Boluarte's visit. As an example, Peruvian exports to the Asian dragon exceeded US$25 billion in 2023, while there was a US$13 billion trade surplus, according to the Customs Administration of the People's Republic of China (AGA). Peru is third among the Latin American countries that sell the most to China, being only surpassed by Brazil and Chile.
This is not a position achieved overnight. In 2008, Peruvian exports to China totaled only US$3.55 billion between January and November, according to figures from the National Superintendency of Tax and Customs Administration (Sunat). But the scenario was about to change.
FTA, A KEY TOOL
“The development of Peru is linked to China,” declared the then Peruvian president Alan García during the meeting he held with the Chinese president Hu Jintao, in March 2008. In addition to the usual cooperation agreements, at that meeting, negotiations advanced to sign the free trade agreement (FTA) between both countries.
Later, in November, during the first APEC organized in Lima, the signing of the Treaty was made official. The document would finally be signed in April 2009 and became in force in March of the following year.
The consequences have been clear since then: between 2010 and 2023, Peru's exports to China quadrupled, according to an analysis by the Andrés Bello Foundation. If specific numbers are analyzed, Peruvian exports to China grew 325.9% in the last 14 years and, on average, registered an annual growth rate of 13.2%, according to the Foreign Trade Society of Peru (Comex- Peru).
This organization highlights that the mining sector is the most benefited in this commercial relationship. Indeed, it contributed with revenue of US$ 21.16 billion, which accounted for 95.4% of total exports of primary products. Within the latter, shipments of Peruvian copper led with US$ 15.6 billion, equivalent to 73.7% of the total. Following are iron ores and their concentrates, with US$ 1.64 billion (7.7%), as well as lead minerals with US$ 1.1 billion (5.2%).
However, Peru also has notable presence in Chinese markets beyond mining, as reflected by the construction of the Chancay megaport and its focus on non-traditional exports. In this group, areas such as fishing (US$ 441 million), the agricultural sector (US$ 367 million), textiles (US$ 71 million) and chemicals (US$ 31 million) stand out.
WILL KUCZYNSKI'S PRECEDENT BE REPEATED?
But, naturally, the rising trade relationship between Peru and China has not been free of obstacles or questionable actions. In September 2016, Peruvian President Pedro Pablo Kuczynski chose Beijing as the destination for his government's first international trip. There were clear advances, such as the lifting of Chinese sanitary barriers to fresh Peruvian products, which benefited agricultural exports such as blueberries.
Likewise, Kuczynski and Xi Jinping discussed the terms of two infrastructure megaprojects: the Commuter Train, proposed to connect Lima with the southern city of Ica, as well as the Bioceanic Train, which would link Peru and Brazil. The latter was the most ambitious, with an investment of US$ 10 billion and intended for the transportation of goods, such as soybeans and minerals.
Despite being a tempting promise, the Peruvian president rejected the project, doubting the environmental impact that its construction would have. Finally, this trip did not leave any new agreements or commitments between Lima and Beijing.
In the following years, Peru plunged into the political crisis that continues to this day and no president managed to return to the People's Palace in Beijing. Boluarte will be the first in eight years and arrives to the Asian continent with some background worth mentioning. Within the framework of APEC San Francisco 2023, the Peruvian president and Xi Jinping held a bilateral meeting, where the latter encouraged Chinese companies to invest in megaprojects, as well as to synchronize development strategies and economic cooperation.
On the other hand, Boluarte requested to optimize the 2009 FTA and again streamline health control processes for the entry of national products. In turn, Xi responded by pledging to import more agricultural products such as pomegranates, chestnuts, dairy products, and meat. It should be noted that some of the points discussed will be addressed again on Boluarte's upcoming trip.
In this context, on June 25, the first stop of the presidential tour will be in Shenzhen, the so-called Silicon Valley of China, due to its strong presence of technological giants. There, Boluarte will meet with the CEOs of Huawei and BYD, two companies that have gained ground in the Peruvian economy in recent years.
It is important to highlight that Chinese big tech It has not been free of controversy, due to the continuous offers of paid trips to Peruvian politicians to visit their facilities in China and events in other countries. Such is the case of congressman Luis Aragón, from Acción Popular, who participated last February in the Mobile World Congress in Barcelona (Spain), at the invitation of Huawei.
Then, on June 27, Boluarte will meet in Shanghai with representatives from Jizhao Mining, China Railway Construction and Cosco Shipping. All of them have an important history of investments in Peruvian territory. Jizhao, specialized in mineral exports, is focused on the construction of the Port of San Juan de Marcona, while Cosco Shipping is doing the same with the Chancay megaport, whose inauguration is scheduled for November with the presence of Xi Jinping. The presence of China Railway also suggests a possible negotiation to resume old projects such as the Commuter Train. Will Peru be able to obtain the best returns from this trip? Or will the bittersweet experience of 2016 be repeated?
