Chinese Investment Help Boost Peru’s Gross Domestic Product
China’s investment in Peru helped in boosting the Latin American country’s gross domestic product. According to Peruvian Prime Minister Pedro Cateriano that Chinese investment in Peru has considerably increased their mining production citing the Toromocho and Las Bambas copper mine projects.
The Toromocho project has seen success with an announced expansion of $1.5 billion, while the Las Bambas copper mine, one of the largest mine projects in the world saw investments of more tha n$ 10 billion.this type of investment made Chine the front runner investor in the mining sector in Peru. Aside from the two copper mines, a Chinese company is exploring iron deposits in the coastal region of Ica. Mining is one of the important pillar in the China-Peru trade that amounts to more than $15 billion in 2015 even with the onset of the international financial crisis. Bilateral ties between both countries is going well and a commission is created to examine further a number of matters for progress.
An exchange of visits by leaders of both countries contributed to bilateral relations, which led to the creation of the mechanism of permanent dialogue in evaluating diplomatic, political, cultural and economic matters. China not only benefited Peru but all other countries in Latin America, since the Chinese economy is strong it affected the entire world. Peru is grateful for China’s role in the economic sphere, but several are fearful on a slowdown in China’s economy such as the transfer of technology. Future progress is seen in other fields that will improve in several areas, wherein China will not only sell equipment but also manufacture them locally in Peru.