A quiet revolution is underway in the bustling port city of Chancay in Peru. Over the past two years, this once-overlooked coastal town has transformed into a regional transportation hub.
Due to China’s investment, Chancay is now home to a high-tech megaport equipped with unmanned cranes and 5G technology. When operational, the port will accommodate the world’s largest cargo ships, handle up to 1.5 million twenty-foot equivalent units (TEUs) annually, and significantly reduce shipping times. The first phase of the project will reduce the sea shipping time from Peru to China to 23 days, cutting logistics costs by at least 20 percent.
The port will not only benefit Peru but also serve as a regional logistics hub for all of Latin America. Businesses from countries such as Brazil, Venezuela, Bolivia, Paraguay, and Argentina will rely on the port as a key departure point for trade with Asia.
Yet, Chancay is just one piece of a much larger puzzle. Across continents, China is deepening its engagement in global industrial cooperation, promoting free trade and investment, and pushing to establish an open world economy.
One of China’s global trade strategies is signing free trade agreements (FTAs) with other countries. Data from the commerce ministry shows that as of the end of April, China has inked FTAs with 29 countries and regions, covering continents from Asia and Oceania to Africa and Latin America. In total, trade with these partners accounts for roughly one-third of China’s foreign trade.
The numbers tell a compelling story. In 2022 alone, trade volumes with FTA partners surged by 8 percent, outpacing China’s overall trade growth of 7.7 percent. For countries like Chile and New Zealand, these agreements have unlocked opportunities for goods ranging from cherries to dairy products, which now enjoy tariff-free access to Chinese markets.
“The signing of FTAs allows the ever-expanding Chinese market to be shared globally. This facilitates the complementary advantages of resources among participants, making it one of the key drivers of global economic growth,” said Wang Yong, a professor at Peking University’s School of International Studies.
Reference(s):
China pushes for open markets amid rising anti-globalization trends
cgtn.com
