Peru expects to diversify exports to China

Diversified investment

As Peru diversifies its exports to China, Gao Jinbao, China's commercial counselor to Peru, called for diversified investment from China in sectors beyond mining in the Latin American country.

Chinese investment in Peru is expected to hit a record high of $4 billion by the end of this year, he said.

"Chinese companies have to diversify their investment in Peru", a nation whose economic growth remains fairly high despite the slackening global economy.

More than 80 Chinese companies have operations in Peru, with investment mainly focused on copper and iron ore mining.

China's investment in Peru has been mainly in mining, autos, telecommunications and engineering equipment, with cumulative investment reaching $3 billion in 2011, said Gao.

But, "we have to diversify investment here, expanding into sectors beyond mining.

"We can see huge potential for growth in many industries, including agriculture and forestry," he added.

Peru has led Latin America's economic growth in these years, with September being its 37th consecutive month of expansion.

The Peruvian economy grew 6.3 percent year-on-year in the first nine months of 2012, mainly led by construction, which grew 16 percent, and mining, which expanded by 4 percent.

"China is an important source of Peru's FDI, and Chinese corporate investment is mainly in the mining industry," said Ugaz.

"But there are many sectors in which Chinese investment could grow, such as infrastructure, telecommunications, autos and transportation."

Research conducted by the Peruvian government showed that the nation's continued economic growth requires massive infrastructure construction, which would generate new investment projects worth as much as $88 billion for foreign companies.

The infrastructure sectors that especially need foreign investment are energy, transportation and telecommunications, according to AFIN, Peru's national infrastructure development association.

"China's investment in infrastructure will surpass $10 billion in the next 10 years," Ugaz said.

President of the Peruvian Chinese Chamber of Commerce Eduardo McBride said that Chinese investment in Peru could reach $10 billion by the end of 2015.

Contact the writer at dingqingfen@chinadaily.com.cn