Xi Jinping arrives in Peru for Apec, set to sign 30 bilateral deals with China

The president-elect campaigned on an “America First” platform of anti-immigration and protectionist tariffs, including a threatened 60 percent tax on all Chinese imports.

Beijing will try during this week and next week to position itself as a “responsible world citizen” while the United States turns more and more inward.

China is South America's second largest trading partner after the United States. It is also the main trading partner of many countries on a bilateral basis and has concluded free trade agreements with five countries.

Beijing has 22 other projects underway in South America through its Belt and Road Initiativethe Chinese government's plan to improve trade and economic integration around the world.

Xi added in his Thursday post that China was ready to work with Peru to “practice true multilateralism, promoting an egalitarian and orderly multipolar world and universally beneficial and inclusive economic globalization.”

Apec meets this year under the theme “Empower. Include. Grow.” Established in 1989, when Asian economies were booming, the intergovernmental organization aims to expand regional trade and reduce trade barriers.

But that of Apec our own research suggests obstacles are increasing in line with global trends and its economic growth will likely lag behind the rest of the world.

The group's 21 member economies together account for about 60 percent of global GDP and more than 40 percent of global trade.

“It is ironic that Trump is talking about tariffs across the board when at Apec it was announced that Xi Jinping would sign a new, updated free trade agreement with host country Peru,” he said. said Victor Cha of the Washington-based Center. for strategic and international studies.

“There is no real interest in a bilateral meeting between the United States and China to advance a new agenda, other than to ensure some sort of stability in the interim before the transition. [from the Biden administration]” Cha added.

In his article, Xi sought to appeal to ordinary Peruvians with cultural references and emphasizing the importance of local projects in a bid to counter China's reputation in some quarters for making deals with elites without involving community groups. .

In Peru, police form a shield wall when encountering protesters against the Apec rally in Lima. Photo: SCMP alt=Peruvian police form a shield wall as they encounter people protesting the Apec rally in Lima. Photo: SCMP>

“As an ancient Chinese saying goes: ‘Bringing benefits to the people is the fundamental principle of governance,’” Xi wrote. “We will encourage Chinese companies to create more jobs and fulfill their social responsibilities in Peru, making it our civil friendship more tangible and beneficial.

But discontent with Peruvian President Dina Boluarte was on display Thursday when hundreds of protesters threw bottles, sticks and even avocados at a wall, with police armed with shields and batons seeking to prevent them to approach the Apec location.

The intermittent strikes since September are not so much against China or the international community as against Peru's weak government, analysts said, citing corruption scandals, attempted coups and political instability.

Peru ranked 121st out of 180 countries on Transparency International's Corruption Index in 2023, its most recent report, down three points from 2022.

When Boluarte assumed the presidency in late 2022 after her predecessor's impeachment and arrest on charges of rebellion and conspiracy, she became the country's sixth president in six years.

“It's about fighting crime, it's not even about revenue, because we've seen a real increase in crime,” said Cynthia Sanborn, director of the Center for China and International Studies. Asia-Pacific at the University of the Pacific in Lima. “The government did not react, not even with a demonstration measure.”

A related source of anger, analysts said, was the perception that the Peruvian government had focused on impressing global elites without caring about its many problems. “Apec, do not ally yourself with the dictatorship,” read a sign at Thursday’s demonstration on Avenida Canada.

Security concerns were cited as the reason why Xi did not travel to Chancay to inaugurate the port in person, but instead participated via video link from Peru's presidential palace.

John Kavulich of the Washington-based economic modeling firm Issue Insight said Beijing was concerned about investing $3.5 billion in a port project in a country with fragile leadership.

But unlike Western banks and companies that run projects, the continent's officials are able to take a longer-term view than just the next financial quarter, he said.

“Are they worried that political instability or sustainability might not be what they hope for? Of course,” Kavulich said. “But they are able to see far.”

This article was originally published in the South China Morning Post (SCMP)the most authoritative voice in reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP application or visit the SCMP Facebook And Twitter pages. Copyright 2024 South China Morning Post Publishers Ltd. All rights reserved.

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