Why Peru wants to shift its relationship with China beyond raw mineral supplies

Peru wants to move to the next phase of its economic relationship with China to reduce the risks from trade ties dominated by the export of raw minerals, according to the country’s ambassador, Carlos Vasquez.

He told Tsinghua University’s World Peace Forum in Beijing on Friday that Peru was now seeking investment in the country’s infrastructure as it sought to diversify its economy.

He said a handful of products – including copper, iron and fishmeal – accounted for more than 90 per cent of Peru’s exports to China.

Vasquez said even though the country was currently benefiting from high prices for raw materials “we don’t determine the price, the price is determined by some foreign markets”.

Supported by strong global demand for minerals such as copper, iron and zinc, Peru’s economy grew by about 3 per cent last year and is projected to grow by 3.6 per cent this year.

Vasquez said these commodities had an increasing strategic importance as China expanded its industrial base and accelerated its energy transition, but the situation was “not sustainable in the long term”.