Peruvian President Dina Boluarte confirmed on Wednesday that she will be visiting China at the end of June on a trip to drum up more economic investment in her country.
During her visit, Boluarte also aims to address recent controversies related to the operation of the megaport in the Peruvian coastal city of Chancay, which is being built with Chinese financing.
Chinese leader Xi Jinping had invited Boluarte for a state visit earlier, but her acceptance had been held up because congressional approval in Peru was necessary. Boluarte, who replaced former president Pedro Castillo after his attempted coup d’état in December 2022, does not yet have a vice-president and requires legislative authorisation to leave the country.
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The Peruvian congress approved the visit on Wednesday. According to the legislative resolution, Boluarte is to arrive in Hong Kong on June 25. From there, she will travel to Shenzhen to take part in a local art exhibition and meet with representatives from Huawei Technologies and BYD to seek investments.
The most significant part of the trip will be in Shanghai and Beijing. In Shanghai, Boluarte will host an event for business representatives to present investment opportunities in Peru; she is also expected to meet with officials from Cosco Shipping Port, the majority shareholder of the Chancay megaport.
Financed under the Belt and Road Initiative for US$3.5 billion, the port is scheduled to open in November during the Asia-Pacific Economic Cooperation summit in Lima and will serve as the main trade hub between South America and China.
However, legislation and judicial disputes have cast doubt on its activities after the Peruvian government reviewed a contractual clause that grants Cosco exclusive control.
Following threats from the Chinese to escalate the issue to international arbitration, Peru’s congress legislated changes to the country’s port law, granting Cosco operating rights.
But the dispute remains unresolved. Despite legal reforms, the controversy surrounding the contract between the National Port Authority and Cosco is still being examined by Peruvian courts, following concerns raised by Ositran, the Peruvian supervisory agency for public-use transport infrastructure investment.
In April, Cosco invoked a provision of the Sino-Peruvian free trade agreement that provides for amicable, out-of-court negotiations on disputed trade issues within six months.
The Chinese company also sent a letter to the Peruvian Ministry of Economy comparing the revisions to the port’s operating rights to an “expropriation.” Cosco argued that Ositran “cannot treat the port of Chancay as a public port” since it was built mainly with Chinese funds.
Lima has also faced pressure from Washington, which is concerned that the port could be used for military purposes. Last year, US Army General Laura Richardson, commander of the US Southern Command, warned Peruvian officials of the risks of involving “a communist government and its state-owned enterprises” in critical infrastructure.
Additionally, Lima hopes to begin constructing another port in San Juan Marcona, a region known for its iron mining, where the Chinese Shougang Corporation has been operating since 1992.
Boluarte’s China agenda also includes a meeting with officials from Jizhao Mining, which won the tender for the new port’s construction, and discussions with the China Railway Construction Corporation about projects connecting Peru’s highways with neighbouring countries including Brazil, Bolivia and Colombia.
Boluarte is expected to join Xi on June 28 for a ceremony in Tiananmen Square and a bilateral meeting in the People’s Palace. According to the Peruvian press, Zhao Leji, president of the standing committee of the National People’s Congress, is also expected to attend.
In the request sent to Congress, Boluarte’s representatives said the meeting would focus on signing agreements in economic cooperation and phytosanitary protocols “to enable the export of Peruvian products that are already in the final negotiation process”.
Boluarte and Xi are also expected to announce the establishment of a Peruvian-Chinese Business Council.
Hours before the congressional session, Peruvian Foreign Minister Javier Gonzalez-Olaechea said in a statement that he considered the trip “a very important visit in a very important year”.
“We must not forget that the Apec summit will take place in November and that the Chinese president will be coming [to Peru] within this framework,” he said. The gathering will bring together several heads of state from the Asia-Pacific region in Lima.
Peru’s labour minister, Daniel Maurate, also highlighted the importance of China for the country, citing “the billions of dollars [invested] in the Chancay port terminal that should generate thousands of jobs”.
More from South China Morning Post:
- Why is the US uneasy about China’s troubled US$3.6 billion port project in Peru?
- World Bank finds Chinese company committed violations in Bolivian infrastructure project
- Peru President Dina Boluarte’s brother and lawyer arrested over alleged influence peddling
- China vows ‘firm support’ for Peru as Foreign Minister Javier Gonzalez-Olaechea Franco visits Beijing
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