[Photo/VCG]

The origins of the Silk Road can be traced back to the Han Dynasty (206 BC-AD 220) in China. The ancient Silk Road comprised a series of roads and routes that linked various regions of China with cities in Asia and Europe and prospered till the Ming Dynasty (1368-1644).

During his visit to Kazakhstan and Indonesia in 2013, Chinese President Xi Jinping put forward the proposal of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, which became known as the Belt and Road Initiative.

Latin America's trade ties with China have centuries of history. In 1971, Peru with 75 other countries, voted for the People's Republic of China that helped restore its lawful seat in the United Nations. The two countries established diplomatic relations on Nov 2, 1971, and the 53rd anniversary of the establishment of Sino-Peruvian diplomatic ties was observed on Nov 2, 2024.

It is difficult to find two countries that share as many similarities as Peru and China. As ancient civilizations both, they have contributed to humankind's development, and stand out on their respective continents. Not surprisingly, the shortest maritime distance between Shanghai and the South American west coast is Chancay in Peru.

China's spectacular economic development and opening-up to the outside world since the late 1970s strengthened China's foreign policy, prompting it to give a call to build a community with a shared future for mankind.

Peru was one of the first countries to benefit from Chinese cooperation. In 1992, the Shougang company of China acquired an iron mine in Marcona, Peru (one of China's first investments abroad). Since then, collaboration and cooperation between Peru and China have increased, with the two countries signing a free trade agreement in 2009, and raised the bilateral relationship to a comprehensive strategic partnership in 2013. China's first investment in Peru (in the Marcona iron mine) was $120 million. Today, it has increased to $35 billion, spread across sectors such as mining, infrastructure, energy, communications and services.

Since the 1990s, Peru has developed a formidable macroeconomic environment characterized by the strength of its currency (Sol), single-digit inflation for 27 consecutive years (the only country in Latin America with such a record), a low level of external debt (in relation to GDP) and a high level of reserves in the central bank (one of the highest on the continent). Despite the political vicissitudes, the drivers of Peru's economy are very powerful and resilient.

This week the Chancay Port, a symbol of Sino-Peruvian cooperation, is set to hold its operation ceremony. It will turn into a business hub of the Americas and trigger a true economic revolution in the region, directly boosting its development and reconfiguring the map of maritime routes in the Asia-Pacific region.

The Sino-Peruvian partnership is being continuously reinforced. Reputable Chinese companies in consortium with local companies are in charge of important projects in different regions of Peru, creating direct and indirect employment and contributing to Peru's development.

Among the emblematic projects are the construction of the San Gabán III Hydroelectric Power Plant, worth $500 million, in the forest region of Puno in southeast Peru, which includes the construction of an about 15-kilometer-long tunnel that will divert the waters of the river of the same name to generate 206 MW of electricity and feed the national interconnected system.

In the neighboring region of Cusco, another important Chinese company is building a road, including a 2-km-long tunnel, from Santa Maria to Machu Picchu, a UNESCO World Heritage Site, to provide easier and better access to the Inca sanctuary.

Peru is investing in infrastructure projects to support the new Chancay megaport, aiming to enhance the Callao-Chancay logistics corridor and improve connectivity across the country. The twin port complex development are located in Lima region and are separated by 80 km. As a new trade hub on the Pacific coast, the Callao-Chancay port complex offers Brazil and other South American countries an alternative export route to Asian markets.

Peru is witnessing economic development on such a scale for the first time in its history thanks to its partnership with China, which is based on goodwill, mutual trust and mutual respect. Peru's development is an example of brotherhood and common destiny of two ancient civilizations, which will become an example for Latin America.

The author is an emeritus professor at the Center for Advanced National Studies, and director of the General Marín Arista Research Institute, Lima, Peru.