The China-Peru relationship under China’s new economic paradigm
Arrieta, G. (2021). The China-Peru relationship under China’s new economic paradigm. In Kellner, T. and Wintgens, S. China-Latin America and the Caribbean: Assessment and Outlook. pp. 156-169. Routledge: London. https://www.taylorfrancis.com/chapters/edit/10.4324/9781003037934-13/china-peru-relationship-china-new-economic-paradigm-gabriel-arrieta
Over the last decades, the PRC has influenced Latin America by using trade and investment as key instruments. Peru has become one of its most important partners in the region. The bilateral relationship is focused on the raw material exports from Peru to China and the Chinese investment to targeting sectors in Peru for goods that are fundamental for China. Currently, the traditional relationship faces difficulties mostly explained by structural changes in the Chinese economy that will affect the short, medium and long-term relationship with Peru. The chapter will discuss, from a Peruvian perspective, the opportunities and challenges at a micro and macro-level for the Peruvian–Chinese economic relationship given that new scenario. The new consumption patterns, the Chinese reforms in innovation and production, and the BRI initiative could bring substantial benefits for Peru. Nevertheless, these results are conditioned by the adoption of strategic economic policies in order to establish new synergies and drivers for this relationship.