China-Peru Economic Relations Strengthened through Infrastructure Projects
China’s involvement in Peru has led to significant infrastructure developments, highlighted by the upcoming Bullet Train Mega Project between Lima and Ica. This project will enhance economic ties and logistics, reduce transportation times, and increase tourism. Peru is diversifying its exports to include more agricultural products, bolstered by China’s expanding investments in the region.
China is playing a pivotal role in enhancing Peru’s infrastructure, fostering closer ties between the two nations as Peru adopts advanced rail networks and logistics services. Analysts highlight the upcoming 323-kilometer rail link between Lima and Ica, known as the “Bullet Train Mega Project,” as a primary example of this collaboration. Jhon Valdiglesias Oviedo, a researcher at the Center for Asian Studies, stated, “The more China’s role in Peru deepens, the more we see…infrastructure capabilities, construction speed and commitment to developing infrastructure projects.”
The Lima-Ica rail project anticipates groundbreaking in late 2025, aiming for completion within five years. This ambitious endeavor features 47 kilometers of viaducts and 32 kilometers of tunnels, with electric trains expected to reach speeds of 200 kilometers per hour for passengers and 100 kilometers per hour for cargo. Upon its completion, the rail link will facilitate travel for 45,000 passengers daily across 15 strategically positioned stations.
The rail project is projected to significantly benefit Peru’s economy through job creation and enhanced logistics, concurrently addressing issues like traffic congestion and environmental pollution. It also seeks to promote regional tourism and commerce between essential economic areas, according to Oviedo. He remarked, “Peru chose to partner with China because they’re our largest trading partner. The relationship brings immediate benefits to Peru through foreign exchange, job creation and economic growth.”
Peru’s infrastructure development is further supported by the “Bi-Oceanic Rail Corridor,” linking the Andean region to the Port of Chancay. Chinese builders recently completed the Chancay Tunnel, enhancing logistics between Peru’s coastline and mountainous regions. The $3.5 billion Chancay port project, inaugurated last year by COSCO Shipping and other stakeholders, has notably decreased shipping times to Shanghai by nearly 20 days, now totaling 23 days.
Oviedo emphasized the significance of the Port of Chancay, noting, “The Port of Chancay is becoming a cornerstone for future Chinese investments in Peru’s infrastructure development.” Beyond traditional exports, Peru’s economic relations with China are diversifying, particularly in agriculture and manufacturing, which accounted for 79 percent of Peru’s exports to China in 2023. Omar Narrea from the Center for China and Asia-Pacific Studies notes, “Peru is well-positioned to expand its presence in China’s growing market for fruits and vegetables.”
The burgeoning infrastructure projects driven by China in Peru underscore a deepening partnership that offers significant economic advantages. The initiatives not only enhance logistical efficiency and boost trade but also signify a shift in export dynamics from traditional minerals to agriculture and manufacturing. As infrastructure ties strengthen, Peru is poised to experience substantial economic growth and diversification in its trade portfolio.
Original Source: global.chinadaily.com.cn
