CHINA AND LATIN AMERICA TRADE

Good day! Despite all the bad conditions in the China’s stock market, its trading activities are still running well. Currently, China has been strengthening its foreign trade in various ways (such as making new policies, etc.). Not only in the trading / commerce sector, but also in the development sector. They are building the world’s largest radio telescope ! In this article, you’ll find out about China’s current activities focussing on Latin America or LaTam (for other reference, click here).

The Consul General of Peru in Guangzhou expects the trade between China and his country to continue its robust momentum and generate 20 percent growth this year, while looking to export more categories of products to China.

Bilateral trade between the two countries stood at $16 billion last year, with products exported to China including minerals, fishmeal and fruits, and those imported from China including machinery, telecommunications equipment and chemicals, said David Gamarra Silva.

Two-way trade has been increasing since the free trade agreement (FTA) between the two economies took effect in 2010, he said.

China is Peru’s largest trading partner and Peru is China’s fifth largest partner in Latin America.

Starting this month (July), avocadoes from Peru will enter the Chinese market to join grapes, mangoes, oranges and lemons.

Gamarra hopes, through the FTA, to expand the trade to more fields and enable more small and medium-sized enterprises to export their products, such as jewellery made of pearls, gold and silver, and wool-made handicrafts, to China.

With a long coastline, his country is also developing the aquatic products industry.

However, many Peruvian businesses have no idea how to export their products to China and Gamarra’s team provided guidance in business promotion to some Peruvian SMEs attending the China Import and Export Fair in Guangzhou in April and May.

Guangdong JMA Aluminum Profile Factory (Group) Co, one of the largest Chinese aluminum profile producers, sees a sizable demand in Peru and is seeking partners in the South American country, said Lin Runqu, manager of the export department.

The company plans to attend an international trade show of building materials in Lima, Peru’s capital, later this year.

Guangdong Homa Appliances Co, one of the largest refrigerator and freezer exporters of China, expected its sale to Peru to skyrocket from 3,000 units last year to 30,000 units this year, said Michael Yao, vice-president for sales and marketing.

He attributed the strong momentum to the relatively low tariff and the rising consumption in the Peruvian economy, adding the historical link with people with Chinese origin helps to advance the cooperation between the two economies.

Homa plans to expand its presence in emerging markets, including Peru, by developing new models and strengthening the cooperation with local distributors, brands and manufacturers, Yao said.

Meanwhile, Gamarra hopes that more Chinese investment could flow into Peru to produce higher value-added products, including in the mining industry and into infrastructure.

By the end of last year, Chinese investment into Peru had amounted to $18 billion, extending to sectors such as mining, forestry, fishery, construction and real estate.

He also sees the potential of bringing Peruvian businesses to the free trade zones in Guangdong, which offers incentives to foreign investors.

Gamarra takes special interest in promoting cultural exchanges between his country and South China, pointing to the fact that 12 percent of the Peruvian population of 30 million has Chinese origin.

Peruvians are familiar with Chinese culture and all provinces have many Chinese restaurants, which are called chifas, with similar pronunciation of Chinese word “have meal,” he said.

Nearly 90 percent of Peruvian Chinese can trace their roots to cities like Guangzhou, Zhongshan, Jiangmen and Taishan in Guangdong province.

Gamarra is devoted to disseminating Peruvian culture in Guangdong, with links already forged between a number of universities in Peru and Guangdong, and an exhibition of photos depicting the Chinese migrants on his mind.

With his consulate general in Guangzhou formally launched last month, Gamarra pledged efficient visa service to Chinese travelers, 24 hours upon the collection of necessary documents to qualified applicants.

“Chinese travelers to Peru totaled 16,000 last year. China is a huge country and we want to increase that,” Gamarra said.