China – Peru Relations
Peru was among the first Latin American countries to establish diplomatic relations with China. Bilateral ties have been developing smoothly since the two countries established diplomatic ties in 1972.
Peru launch FTA talks with Chinese President Hu Jintao who met with Peruvian President Alan Garcia. The two leaders agreed to launch bilateral free trade area (FTA) negotiations. Their meeting took place in Australia’s largest city of Sydney on the sidelines of the 15th Economic Leaders’ Meeting of the Asia-Pacific Economic Cooperation (APEC) forum. Both China and Peru are APEC members.
Since 2004, China overtook the United Kingdom and Chile to become Peru's second largest export market and second largest import market (behind the US). Peruvian trade with China was mostly focused on minerals exports China-Peru ties entered a new stage of development since the two countries established a comprehensive partnership of cooperation in 2005. In 2005, the Peruvian Government successfully improved its trade relations with China, witnessing an increase in both exports to and imports from China over 2004 levels. China was the second most popular destination for Peruvian exports and imports, with exports to China increasing by 51 percent and imports from China increasing by almost 37 percent. In comparison, Peru's exports to the United States totaled $5.2 billion in 2005.
High-level exchanges have been frequent, mutual understanding and trust deepened, and economic and trade cooperation expanding.Exchanges and cooperation in the areas of culture, education, science and technology, justice and tourism have become closer and the two countries have also maintained sound coordination in regional and international affairs.
In efforts to bring bilateral ties to a new height, Hu proposed that the two countries should maintain high-level contacts, enhance political mutual trust and enrich the strategic content of their comprehensive partnership of cooperation.
China’s development is of great significance to Peru, since this country wanted a close and solid relationship with China and that the two countries should also strengthen cooperation in ports, electricity, mining and tourism.
On the Taiwan issue, Peru firmly adheres to the one-China policy. China, in reply, expressed appreciation.
China viewed Peru as the "gateway" into South America. Although China had not historically taken a strong interest in Peru, the Chinese investments in the oil and gas sector and enhanced trade relations indicated that Peru was becoming more important.
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