2010-03-27 08:48

Chinese Foreign Minister Yang Jiechi (right) and his Peruvian counterpart Jose Garcia Belaunde on Friday said the two nations have strengthened mutual cooperation in several areas. [Yang Shizhong / China Daily]

Beijing: Chinese Foreign Minister Yang Jiechi and his Peruvian counterpart, Jose Garcia Belaunde, concluded talks in Beijing Friday pledging to bolster bilateral ties and build on the opportunities created within the Sino-Peru Free Trade Agreement (FTA).

China and Peru have increased political trust, strengthened cooperation and worked in close coordination on international issues over the past few years, Yang told Garcia, who is currently on an official visit to China through March 29.

"To further strengthen mutually-beneficial cooperation is in line with the interests of both countries and both peoples," Yang said, while vowing to advance the China-Peruvian strategic partnership to new heights.

Garcia said the Peruvian government values the mutual relationship with China, and, as for the two countries free-trade pact, Peru anticipates a growing number of Chinese enterprises will invest in the South American nation in areas like energy, mining and infrastructure.

In 2009, Peru's economy grew by 5 percent while economic growth in Latin America was, on average, only 4.1 percent.

Speaking at an evening press briefing on Friday, Garcia commended China's continued support for Peru's economy via large-scale commodities purchases. He also emphasized how the Sino-Peruvian FTA enhances the economic status of both nations in the Latin American region.

The Sino-Peru Free Trade Agreement took effect on March 1, 2010, and 90 percent of goods will be tariff free on a phased in schedule. These include items ranging from China's electronics, automobiles, chemicals and machinery products to Peru's fruits and minerals, according to the agreement. China has since emerged as Peru's second-biggest trade partner.

The Sino-Peruvian FTA is the second such agreement China has signed with a Latin American country after Chile.

Huang Shikang, a former Chinese ambassador to Chile, Mexico and Colombia, said the FTA not only promotes business activity with Peru, but also provides incentives to Chinese enterprises eyeing business in neighboring countries.

"The Sino-Peru deal is a positive sign of deepening bilateral economic and trade cooperation," Huang said, "Moreover, domestic firms can seize the opportunity to enter neighboring nations such as Ecuador, Bolivia and Brazil. Nowadays, I know many private entrepreneurs already have such plans in the works."

Trade between the two countries hit 4.92 billion US dollars from January to September 2009, according to Chinese custom's authorities.

Since the beginning of the last decade, Beijing has vigorously pursued free trade agreements and has to date signed trade pacts with the Association of Southeast Asian Nations (ASEAN), Chile, Pakistan, New Zealand, Singapore and Peru.

In addition, China is currently in free trade talks with Australia, the Gulf Cooperation Council, Iceland, Norway and Costa Rica, among others.

Despite previous media reports questioning China's growing role in Latin American and African trade, the former Chinese ambassador denied the existence of any so-called "China Threat", saying the nation will work together with all countries - including Peru - to bring a win-win conclusion for all parties involved.

"Both China and Latin American nations have similar viewpoints on setting up a new economic order and China's investments meet their core requirements," he said.