Peruvian president to travel to China at the end of June

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.

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.

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”.