After Qian Kai Gang was put into operation, another important development has taken place in China's economic and trade relations with Peru.
On November 1st, the Chinese Ministry of Commerce announced that the 'Amendment to the China-Peru Free Trade Agreement' has officially come into effect. This means that the economic and trade cooperation between the two countries not only includes ports and shipping routes connecting the two sides of the Pacific Ocean, but also the establishment of a more comprehensive system of trade, investment, and supply chain rules.
This upgrade took nearly 8 years. Negotiations between the two parties were initiated in November 2018, and a substantial completion of the negotiations was announced in June 2024. The signing of the upgrade protocol took place in Lima, the capital of Peru, on November 14 of that same year. On October 27, 2026, the Peruvian government officially issued relevant decrees, designating November 1 as the effective date.
Unlike traditional free trade agreements, which mainly focus on tariff concessions, this upgrade has a greater emphasis on trade rules.
According to information released by the Ministry of Commerce of China, the upgraded protocol has improved seven existing chapters, including rules of origin, customs procedures and trade facilitation, intellectual property rights, service trade, and investment. It also adds five new chapters: e-commerce, global supply chains, competition policy, environment and trade, and standards and conformity assessment cooperation.
Among these, the global supply chain section deserves particular attention. It explicitly covers multimodal transport, foreign trade logistics channels, and infrastructure construction. The standard cooperation section establishes mechanisms for mutual recognition of standards between both parties, thereby reducing business transaction costs for enterprises.
Additionally, both parties agreed to initiate negotiations on negative lists for trade in services and investment within two years after the upgraded protocol comes into effect, in order to create conditions for further market opening.
These seemingly technical changes complement Qiankai Port perfectly.
The Qiankai Port, which will be put into operation in November 2024, is one of China's most representative port investment projects in South America. It is managed by COSCO Shipping Port Holdings and has established a direct shipping route connecting China with the west coast of South America.
According to data released by Shanghai, the direct transportation time from Qiankai to Shanghai has been reduced to about 23 days, and logistics costs have decreased by about 20%. Data from Peru's Ministry of Trade and Tourism shows that in the first nine months of 2025, 62% of Peru's agricultural exports to China were transported through Qiankai Port.
If Qiankai Port mainly focuses on improving the efficiency of cargo transportation, then the upgraded free trade agreement addresses the institutional obstacles that arise after goods enter the market.
For Peruvian agricultural products such as blueberries and avocados, the efficiency of cold chain transportation, inspection, and customs clearance is equally important. For Chinese cars, machinery, and electronic products entering the Peruvian market, product standards, certification of origin, and investment guarantees also directly affect operating costs.
Only by combining both can a complete trade chain from production, transportation to market access be truly formed.
What is more noteworthy is that this change occurs against the backdrop of already quite close economic and trade relations between China and Peru.
In 2010, when the China-Peru Free Trade Agreement came into effect for the first time, the trade volume between the two countries in 2009 was only $6.4 billion. By 2025, the bilateral trade volume has reached $50.4 billion, an increase of nearly 7 times. China is currently not only Peru's largest trading partner but also its largest export market and source country for imports.
This connection is largely based on trade in resources such as copper. In January this year, Reuters reported that China purchased about 70% of Peru’s copper production and has significant investments in local mines, electricity, and ports.
However, resource trade also has natural limitations: Peru relies primarily on exports of minerals to generate income, while China plays a role mainly in resource procurement and infrastructure investment.
The significance of Qian Kai's port and upgrade version agreement on the free trade zone lies in opening up new development space for such a relationship.
A more efficient logistics network could encourage Peruvian agriculture and manufacturing industries to expand exports to Asia. Moreover, better investment, service, and e-commerce regulations could also attract Chinese companies to use Peru as a production, storage, and distribution base for their markets in South America.
Of course, this does not mean that Peru has become a free trade gateway for Chinese goods into all of South America. Other South American countries still have their own customs duties, market access, and regulatory systems, and regional logistics networks also need to be continuously developed.
Meanwhile, China's growing economic influence in Peru has also attracted attention from the United States. Reuters reported in January this year that, as the US intensifies its scrutiny of China's presence in Latin America, Peru is facing increasing political pressure regarding how to balance relations with both China and the US.
But for Peru, the actual economic benefits brought by the Chinese market, investment in mining, and port logistics also mean that it is difficult for Peru to simply choose sides between China and the United States.
Therefore, the upgraded Free Trade Agreement that took effect on November 1st is not worth focusing on in terms of how much trade volume can be increased in the short term. What is important is that there are structural changes taking place in the cooperation between China and Peru.
In the past, China mainly expanded its economic presence in Peru by purchasing minerals and investing in infrastructure. Now, logistics networks and trade rules are starting to work together, creating conditions for broader industrial cooperation.
From copper mines to ports, and then to supply chains and investment rules, China's economic presence in South America is expanding at a deeper level.
Whether Peru can further develop itself from a resource exporter into a trade hub connecting Asia and South America will be an important indicator to measure the effectiveness of this round of free trade agreements.
