China: Latin business boom

China's trade with, and investments in, Latin America are growing significantly and expected to continue doing so in the future as well.

BY JOACHIM BAMRUD

Last week, Chinese President Hu Jintao signed a series of deals with his Peruvian counterpart, Alan Garcia, aimed at boosting business ties between the two nations.  "Both leaders delivered flattering reciprocal comments and highlighted pleasing progress on negotiations on a free-trade agreement," U.S.-based consultancy Global Insight said in a commentary on Friday.

The two countries hope to finalize a free trade agreement by November, when Peru is hosting the Asia-Pacific Economic Cooperation (APEC) summit. Peru aims to increase its exports to China five-fold by 2015, Garcia told reporters Friday.  Even without the free trade agreement, China's trade with Peru is soaring and the Asian nation is now Peru's second-largest export market after the United States. Peru is Latin America's fourth-largest exporter to China, according to a Latin Business Chronicle analysis of 2007 data from China's Ministry of Commerce. Meanwhile, thanks to two-way trade growing by 53.6 percent last year to $6.0 billion, Peru has replaced Venezuela as China's fifth-largest trading partner in Latin America. Peru's exports to China are dominated by mining – 95 percent - while Chinese imports are essentially valued-added products, according to Global Insight.