Peru, located across the Pacific Ocean and 17,000 kilometers away from Beijing, has emerged as a key focus in China’s global partnerships.
This interest was highlighted by a recent visit from China’s president, followed by a joint statement during the Asia-Pacific Economic Cooperation (APEC) summit. The agreement emphasized plans to deepen the comprehensive strategic partnership between the two nations.
For investors and tech entrepreneurs, the collaboration holds promise. The agreement outlines joint efforts in circular economy, sustainable agriculture, industrial and supply chains, and digital economy investments. It also sets the stage for advancements in transformative technologies such as artificial intelligence, robotics, internet-of-things, blockchain, data analytics, nanotechnology, and telemedicine.
During the APEC opening ceremony, Peru’s president welcomed global investors, emphasizing Peru’s legal and economic stability and its “clear rules of engagement.”
Today, Peru is China’s second largest investment destination in Latin America, second only to Brazil. Infrastructure, energy, and mining have become pillars of Sino-Peruvian collaboration. The APEC summit power was ensured by Peru Boluz Energy, recently acquired by China Southern Power Grid (CSG). Similarly, Luz del Sur, Peru’s largest electricity provider, has been managed by Yangtze Power, a subsidiary of China Three Gorges Corporation (CTG), since 2020.
Port Chancay, located north of Lima, stands out as a landmark project. Jointly funded by China and Peru at a cost of USD 3.6 billion, the port is affectionately referred to as “Peru’s Shanghai.” Its first phase has cut shipping times to China to just 23 days, reducing logistics costs by over 20%. The project generates USD 4.5 billion annually for Peru and has created more than 8,000 jobs.
Despite the geographic distance, China and Peru share a history spanning over four centuries. Chinese immigrants first arrived in Lima via the Manila galleon trade in the 17th century. In 1849, Peru passed immigration laws to attract Chinese laborers. The first group of 75 workers departed Macau that same year, reaching the port of Callao after a grueling 120-day journey.
Today, Peru boasts Latin America’s largest Chinese community and leads the region in political participation among ethnic Chinese.
To find out what makes Peru a compelling destination for Chinese entrepreneurs, 36Kr spoke with Duan Qi, a serial entrepreneur with a unique background spanning China, Europe, and LATAM, including Ecuador, Mexico, and Peru. Duan transitioned from traditional industries in China to global ventures, eventually establishing a factory in Peru. Her expertise spans international engineering, manufacturing, cultural industries, and fintech across LATAM.
While no single narrative provides all the answers, Duan’s experiences offer valuable insights. Her story reflects the opportunities available in LATAM and how entrepreneurs can navigate this emerging frontier.
The following transcript is Duan’s firsthand account, edited and consolidated for brevity and clarity.
I majored in Spanish and spent my junior year as an exchange student in Spain. After graduation, I joined the China Railway Engineering Corporation and was assigned to an engineering project in Ecuador. This was during the time when China Railway was expanding abroad under the national “go out” strategy, focusing on large-scale infrastructure projects in LATAM such as railways, roads, and bridges.
Over three years, I transitioned from an internal translator to the creator and manager of the HR department. I tackled issues that often give Chinese companies headaches, like labor union disputes, studied Ecuadorian law, wrote articles analyzing labor unions in LATAM, and handled complex project disputes. This experience taught me, from multiple angles, how to collaborate with Latin Americans and get things done.
After gaining hands-on experience with project operations and business development, I returned to Beijing. Soon after, I moved to Mexico to work for a private commercial real estate development company in Mexico City, where I built its international affairs department from the ground up.
At the time (2015–2018), Chinese companies in Mexico were mostly in traditional industries like China Railway, China State Construction Engineering Corporation (CSCEC), China National Offshore Oil Corporation (CNOOC), and Huawei, as well as a few in banking and telecommunications. Large-scale infrastructure projects in Mexico were predominantly won by firms from Spain, France, Germany, the US, Brazil, or local Mexican companies.
However, in just two years (2020–2021), China’s infrastructure players landed several iconic projects in Mexico, including the Tren Maya and Line 1 of the Mexico City Metro. During my time there, I witnessed the transformative impact of the United States-Mexico-Canada Agreement (USMCA) negotiations. Mexico’s leaders openly admired China’s rapid economic growth and envisioned a “Mexican dream,” mapping out a unique development path for the country. It was then that I began to sense the role LATAM would play in global transformations.
After leaving Mexico, I joined a Shanghai-based consulting firm, focusing on business in Spanish-speaking countries worldwide. Consulting required engaging with diverse industries and regions, offering me a broader perspective on the economic and political dynamics of Spain and LATAM.
Now, I’m back in LATAM, aligning my aspirations with the burgeoning wave of Chinese manufacturing and internet companies expanding overseas. In Peru, I’ve been involved in setting up a factory project, while in fintech, I’ve been coordinating initiatives with local governments in major Latin American countries to integrate with the region’s growing payment and consumption ecosystems.
Peru’s reality
A common question about venturing into LATAM is: Which country should one choose?
In my view, any overseas strategy detached from a company’s specific industry and growth objectives is simplistic. Beyond political and economic factors—like the ruling party, exchange rates, inflation, and taxes—one must assess the industry’s nuances and core needs.
That said, China-Peru relations are thriving. From the Peruvian president’s visit to China in June to the recent APEC summit, the partnership between the two nations has deepened. The protocol for upgrading the China-Peru Free Trade Agreement is set to boost not only traditional trade in agricultural products and minerals but also exports of Peru’s high-value fishery products, global supply chain integration, and e-commerce, creating a more business-friendly environment.
One notable project is the port of Chancay, a joint effort between China and Peru. Positioned as a gateway for South American trade to Asian markets, this port is poised to reshape global shipping. The phrase “de Chancay a Shanghai,” meaning “from Chancay to Shanghai,” has already become a popular saying in Peru.
Why Peru?
Over the years, I’ve studied the feasibility of Chinese industries expanding to LATAM. Peru stands out as a “blue ocean” market. While its manufacturing sector remains in the 2.0 era, focusing on agricultural products, textiles, food, building materials, and mining, the government has introduced tax incentives to attract industrial development, including duty refunds for exports and special customs and tax regimes in economic zones.
Currently, only a handful of Chinese factories operate in Peru. The potential for industry diversification and industrial upgrades is immense. In the next two years, I expect Peru to rank second in LATAM’s industrial production, behind Mexico.
Peru’s market stability is another advantage. Economic conditions are not significantly swayed by political changes, and market forces prevail. For instance, Lima’s property prices have remained steady for a decade, inflation is around 2%, and the USD-PEN exchange rate is stable at around 1:3.7.
My personal experience with the Peruvian government has exceeded expectations. For a project we launched, government agencies were proactive from the outset, holding nearly ten video meetings and preparing extensive reports over a three-month period leading up to the onsite visits.
Peru and China have a 13-hour time difference, but Peruvian government officials often had meetings with us at 7 a.m. local time. When we later traveled for onsite visits, the government meticulously planned the itinerary and assigned two officials to accompany us throughout. Sometimes, after a scheduled meeting, we’d decide to add additional discussions on the spot. The officials would immediately send formal letters to relevant parties, coordinating times, locations, and participants.
During initial discussions with potential local partners, we received a service quote that was ten times the market rate. A Peruvian government official candidly warned us that the company was attempting to exploit us and advised meeting more companies and making cautious decisions, noting that some Peruvian firms might try to take advantage of foreign investors.
This pragmatic and sincere attitude stood out and may be connected to the unique status of Chinese descendants in Peru.
Peru has the highest political representation of Chinese descendants in LATAM. Ethnic Chinese have held prominent roles such as speaker of congress, prime minister, and government ministers, with many others serving as congress members and local officials. In business, they have long been active in industries like retail, dining, and construction, with some enterprises growing into market leaders.
Chinese descendants born in Peru are called “tusan,” derived from the Cantonese word for “native-born.” They generally identify strongly with their heritage and often know precisely which ancestors emigrated from China. About 10% of Peru’s population has Chinese ancestry, fostering a natural affinity for Chinese people.
In Lima, a culinary capital, there are over 4,000 Chinese restaurants known as “chifa,” a name derived from the Cantonese phrase for “eating rice.” This connection dates back to the calls of Chinese laborers inviting one another to meals. In the city center of Lima lies the Sociedad Central de Beneficencia China, a charitable society for ethnic Chinese, has a history of nearly 140 years and stands as a testament to the enduring friendship between China and Peru.
Indeed, China and Peru are in a “honeymoon period.” According to the Peruvian Chinese Chamber of Commerce, China’s total investment in Peru exceeds USD 35 billion, spanning industries such as mining, infrastructure, energy, telecommunications, and services.
The roots of large-scale Chinese investments in Peru can be traced back to 1992, when China’s Shougang Group purchased 98.4% of a nearly bankrupt state-owned iron mining company for USD 118 million. This deal included permanent exploration and operation rights over 670.7 square kilometers of mining land.
Today, Chinese enterprises flourish across various sectors in Peru. For instance, the China Minmetals Corporation has invested in the Las Bambas mine. Since its launch in 2016, the project has paid over RMB 12.8 billion (USD 1.8 billion) in taxes to the Peruvian government.
If you can’t beat them, join them
When I first arrived in LATAM over a decade ago, I thought it might be similar to Africa. I quickly learned that the region’s conditions were far better than I’d imagined. Having been under Spanish rule for over 300 years, its economic and legal systems, traditions, and public mindset bear significant European influence.
However, this colonial history also evokes mixed feelings among Latin Americans. Their love-hate relationship with Spain manifests in the countless ways they celebrate independence victories. Figures like Simon Bolívar and Jose de San Martín, symbols of liberation, are commemorated in plazas across the region and represent the Latin American spirit.
Ecuador, the first LATAM country I visited, is located on the equator. Although small, it boasts diverse landscapes and abundant resources. Its capital, Quito, sits high in the Andes mountains.
Working there tested my patience. Ecuadorians would often respond to meeting requests with “manana,” meaning “tomorrow.” But when tomorrow came, they’d say manana again. If it was still manana by midweek, chances were slim for it to happen that week at all. By the weekend, communication would simply cease.
Weekends are sacred family time, with all work-related messages—texts, calls, and emails—automatically ignored. For someone used to the efficiency and precision of Chinese work culture, adapting to this rhythm was incredibly challenging.
Over time, we learned to adjust. If we needed a meeting next week, we’d start scheduling on Monday, confirm every other day, and remind participants on the day itself. Even then, late arrivals were a given.
Once, I was at the national tax office trying to pay a fee before incurring a fine. The staff’s manana attitude left me visibly frustrated. One official looked at me, puzzled, and asked why I was upset, to calm down and return tomorrow. Of course, we all knew that “tomorrow” might never come. In the end, we grudgingly paid the penalty.
This relaxed approach contrasts sharply with the meticulousness I later encountered in Mexico and Peru. For instance, gardeners in Mexico would painstakingly shape trees with attention to detail. Project owners and supervisors often rejected cost-effective materials, insisting on higher standards simply because they weren’t domestically certified.
In Peru, I found that locals could be even more diligent than their Chinese counterparts. I frequently received emails from lawyers and government officials in the early hours of the morning, completely upending my assumptions about the laidback reputation of Latin Americans. Their deep sense of humanity and focus on community welfare also stood out, especially in urban infrastructure planning.
A Latin American friend once told me that “work isn’t life’s entirety”—that they work to better enjoy life. Another said that they would never “kneel to earn money.” These perspectives left a lasting impression on me. I gradually began to understand and accept their approach to work, including the unheard-of half-month salary system and Ecuador’s “dignity wage” as mandated by labor law.
If you try to hustle in LATAM as you would in China, it’d be like punching into cotton—it gets you nowhere. Over the years, I’ve realized that the key to working here is not to resist but to embrace their way of life, which can unlock entirely new possibilities.
Born after 1985, my decade-plus journey in LATAM has taught me one fundamental lesson: to gain respect, you must set aside considerations of age and gender and focus solely on competence.
The difficulties are indescribable, like a fish drinking water—only it knows how cold or warm it is. I’ve cried under the pressure of negotiations that seemed to go nowhere. I’ve spent days on construction sites communicating with workers or hosting briefings, then returned to the office at night to sort employee files and pore over labor laws.
One of my proudest moments was achieving something no other Chinese company had done: obtaining “visto bueno”—a term for “negative employment records”—for two local workers who had repeatedly flouted workplace norms.
LATAM is full of stories, challenges, and opportunities. To thrive here, one must understand, adapt to, and integrate into this vibrant part of the world—after all, it’s their land, and we’re the guests pursuing our dreams.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Ren Qian for 36Kr.