INDEX I. Similarities between Andean, Mesoamerican (Pre-Columbian civilizations) and Chinese civilizations. First contacts II. History of old relations between China and Latin America, The Galleon trade: Manila-Acapulco III. Chinese immigration to the region from the 1840s and diplomatic relations from 1874 onwards IV. China and Latin America economic relations: Trade, Investment and Cooperation I V. China and Latin America economic relations: Trade, Investment and Cooperation II VI. China and Latin America economic relations: Trade, Investment and Cooperation III VII. The present day Chinese community in the region and influence of Chinese culture VIII. Towards a new type of China Latin America relationship

1. China and Latin America
relations: Past, Present and
Future
July 2016
Conferences at Sichuan University
Carlos Aquino, Professor, San Marcos National University, Lima, Peru
Graduate School of Economics, Kobe University, Japan
Official translator of the Japanese language

2. INDEX
• I. Similarities between Andean, Mesoamerican (Pre-Columbian civilizations) and Chinese
civilizations. First contacts
• II. History of old relations between China and Latin America, The Galleon trade: Manila-
Acapulco
• III. Chinese immigration to the region from the 1840s and diplomatic relations from 1874
onwards
• IV. China and Latin America economic relations: Trade, Investment and Cooperation I
• V. China and Latin America economic relations: Trade, Investment and Cooperation II
• VI. China and Latin America economic relations: Trade, Investment and Cooperation III
• VII. The present day Chinese community in the region and influence of Chinese culture
• VIII. Towards a new type of China Latin America relationship

3. I. Similarities between Andean, Mesoamerican (Pre-Columbian
civilizations) and Chinese civilizations. First contacts
• The presence of humans in the American continent is relatively new.
They come from somewhere.
• It is estimated that the first humans that inhabited the American
continent came from Asia, probably around 13,500 years ago,
crossing what is now the Bering Strait.
• They first arrived to North America and then went to Central and
South America
• There are some racial similarities between Asian and American
original inhabitants.

5. Indigenous people from Mexico
https://www.google.com.pe/search?q=mexican+indian&espv=2&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjyrcWi7r3NAhWBKiYKH
VEJAIYQ_AUIBigB&dpr=1#imgrc=qyTBgCjEbaQuxM%3A

6. Indigenous people from Peru
https://en.wikipedia.org/wiki/Indigenous_peoples_of_the_Americas#/media/File:Quechuawomanandchild.jpg

7. • In Peru some call their women, of Andean origins, “china”, that means
Chinese woman, because of this racial similaritiy.
• Also similarities can be found in the structure of the Korean and
japanese language with the Quechua language of the Ancient
Peruvians. For example, in these languages, the verb is at the end of
the sentence.

8. Similarities in ancient cultures of China and
Peru
• Some years ago there was a discovery of an ancient culture in
Sichuan, the Sanxingdui “三星堆”, founded 1,600 years BCE, and
some masks, like the Taotie “饕餮” in this culture resembled the
masks of some Peruvian ancient cultures, like the Moche, that
flourished around 100 AD to 800 AD.
• Taotie mask is a mix of dragon and feline, with bulging eyes, marked
nostrils, teeth, horns and claws. It is usually represented with one
body and two heads that can be dragon, phoenix and snake.
• Some said that is possible that Chinese traveled to Peru crossing the
Pacific and that is why there are some similarities

9. Sanxingdui and Moche culture masks
http://elcomercio.pe/mundo/actualidad/china-y-restos-que-demostrarian-pasado-ligado-al-peru-noticia-1782612

10. Taotie “饕餮” representation in a mask of Sanxingdui “三星堆” culture

11. Anthropomorphized feline in Moche culture

12. Map of South America

13. Map of Peru and Moche culture

14. • Gavin Menzies in a book titled “1421: The year China discovered
America” (published in 2002) wrote that Zheng He “郑和” (born Ma
He “马和”) a Chinese fleet admiral in the early Ming dynasty, reached
the America continent in 1421, 70 years before Christopher
Columbus. In 1492 Columbus reached the America continent
• He said that Chinese in these voyages visited Mexico and Peru. At that
time in Mexico there was the Azteca Empire and in Peru the Inca
Empire.

15. Entitled “General chart of the integrated world”, it is apparently an 18th-century copy
of a 1418 map which claims to show the world that Zheng
https://www.1843magazine.com/content/places/rosie-blau/rewriting-history-map?fsrc=scn/fb/te/bl/ed/

17. II. History of old relations between China and Latin America, The
Galleon trade: Manila-Acapulco
• From 1565 to 1815 some ships were crossing the Pacific Ocean linking
Acapulco (in Mexico) with Manila (Philippines). At that time Mexico
and Philippines were colonies of Spain.
• The ship carried mainly silver from Mexico (and from Peru and
Bolivia) in exchange for spice, porcelain, ivory, lacquerware,
processed silk and other valuable commodities. Many of these goods
were brought from China.
• But also other goods from Latin America reached China at that time.
These were potato, sweet potato, corn, cacao, peanuts, chili, tomato,
pepper, pineapple, tobacco.

18. Manila Galleon
White represents the route of the Manila Galleons in the Pacific and the flota in the Atlantic. (Blue represents Portuguese routes.)
https://en.wikipedia.org/wiki/Manila_galleon#/media/File:16th_century_Portuguese_Spanish_trade_routes.png

19. https://www.google.nl/search?q=galleon+trade&espv=2&biw=1366&bih=667&tbm=isch&imgil=Vdqe-tZlR7hb_M%253A%253Ba-
m9JptBZdspVM%253Bhttp%25253A%25252F%25252Fwww.slideshare.net%25252FofficialLSAINTZ%25252Fgalleon-trade2&source=iu&pf=m&fir=Vdqe-tZlR7hb_M%253A%252Ca-
m9JptBZdspVM%252C_&usg=__0nrOfkwTEr_slsIz0uZw8Zue59k%3D&ved=0ahUKEwi-t5Hd5tLNAhUF6xQKHWaDAlMQyjcIRQ&ei=Aqp2V76uHYXWU-aGipgF#imgrc=3-15akhPV9-
4FM%3A

20. _https://www.google.nl/search?q=galleon+trade&espv=2&biw=1366&bih=667&tbm=isch&imgil=Vdqe-tZlR7hb_M%253A%253Ba-
m9JptBZdspVM%253Bhttp%25253A%25252F%25252Fwww.slideshare.net%25252FofficialLSAINTZ%25252Fgalleon-trade2&source=iu&pf=m&fir=Vdqe-tZlR7hb_M%253A%252Ca-
m9JptBZdspVM%252C&usg=__0nrOfkwTEr_slsIz0uZw8Zue59k%3D&ved=0ahUKEwi-t5Hd5tLNAhUF6xQKHWaDAlMQyjcIRQ&ei=Aqp2V76uHYXWU-
aGipgF#imgrc=6pcA6h8t4sUWlM%3A

21. • These goods have a great influence in the life of the people of China and Latin
America. Agricultures goods like potato and corn make possible the increase in
the population of China. It influenced in some way the gastronomy of China.
Silver increased the amount of currency in the country also.
• It is estimated that one third of the silver of Mexico and Peru went to East Asia.
• A very interesting fact is that the colonies of the Kingdom of Spain could only
trade with the Metropolis: Spain, and trade with other countries was forbidden.
• Spain wanted all the silver and gold from the colonies for itself. So the trade with
China was illegal, and the merchandises going to Latin America were contraband
goods.
• Even so, many people in Latin America used Chinese goods and many merchants,
and even the Catholic church, financed the ships doing that trade.

22. 1888 Mexican 8 Real coin with Chinese "chop" marks
https://en.wikipedia.org/wiki/Spanish_dollar#/media/File:1888_M%C3%A9xico_8_Reals_Trade_Coin_Silver.jpg

23. Spanish Galleon replica
https://www.google.nl/search?q=galleon+trade&espv=2&biw=1366&bih=667&tbm=isch&imgil=Vdqe-tZlR7hb_M%253A%253Ba-
m9JptBZdspVM%253Bhttp%25253A%25252F%25252Fwww.slideshare.net%25252FofficialLSAINTZ%25252Fgalleon-trade2&source=iu&pf=m&fir=Vdqe-tZlR7hb_M%253A%252Ca-
m9JptBZdspVM%252C_&usg=__0nrOfkwTEr_slsIz0uZw8Zue59k%3D&ved=0ahUKEwi-t5Hd5tLNAhUF6xQKHWaDAlMQyjcIRQ&ei=Aqp2V76uHYXWU-
aGipgF#imgrc=vsSUAznhmgWIIM%3A

24. • Anyway, with ships in the Galleon trade also some Chinese people
come to the Americas. For example there are documents that register
the presence of some Chinese (and Japanese and other Southeast
Asian people) in Lima (capital of Peru) as early as the end of the 16th
century.
• Also in Mexico there are documents that shows that by the end of the
XVI century some Chinese were living there.
• Chinese came as sailors, merchants, artisans, and workers. They
introduced Chinese customs and practices like fireworks, kite flying,
embroidery and others.

25. • It is said that the Galleon trade represented the first wave of
globalization, trade between the Americas and Asia.

26. III. Chinese immigration to the region from the 1840s and
diplomatic relations from 1874 onwards
• Since China was opened to the world after the Opium war, Chinese began
leaving the country and many of them went to the American continent.
• Peru was the first country in Latin America were large scale immigration of
Chinese began.
• Chinese come to Peru from 1848 and up to 1874, probably 100 thousand of
them arrived.
• The reason why they came to Peru is that there was a scarcity of labor
force in the plantations of sugarcane and cotton in the Coastal region.
Traditionally slave force was used here (people from Africa brought by the
Spaniards when they conquered the Inca Empire).
• But by the middle of the XIX century the slave trade was being forbidden in
the world and when finally in 1854 slavery was forbidden in Peru the
scarcity of labor become a big problem.

27. Number of slaves that came to the colonies of Spain in America between
1492 and 1870
https://es.wikipedia.org/wiki/Esclavitud
Regions Slaves
México 200.000
Cuba 702.000
Puerto Rico 77.000
Santo Domingo 30.000
Centroamérica 21.000
Ecuador
Panamá
Colombia
200.000
Venezuela 121.000-700.00054
Perú 95.000-300.00055
Bolivia
Río de La Plata
100.000
Chile 6.000
Total 1.552.000-2.336.00

28. • Chinese came to Peru as coolies, 苦力, to work not only in the
plantations but from the second half of the XIX century also to built
railways and to collect excrement of seabirds (guano). Guano is used
as fertilizer.
• But in 1872 there was an incident that will bring to a stop the coolie
trade to Peru. In april that year a Peruvian ship called “Maria Luz”
carrying coolies has to make a stop in Yokohama, Japan.
• During that time a Chinese coolie escaped from the ship and was
rescued by a British warship. He complained of mistreatment in the
Peruvian ship before the japanese authorities.

29. Chinese laborers in Peru, 1890
https://es.wikipedia.org/wiki/Inmigraci%C3%B3n_china_en_el_Per%C3%BA#/media/File:Chinese_laborers_in_Peru.jpg

30. Central Railway
http://diariocorreo.pe/edicion/lima/carretera-central-ferrocarril-central-andino-realizara-traslados-ante-caida-de-huaycos-656512/

31. https://www.google.com.pe/search?q=ferrocarril+central+andino&espv=2&biw=1366&bih=667&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi
QhdSLu8PNAhWBQCYKHXAiB4gQ_AUIBigB#imgrc=snKl8y_LJEQdDM%3A

32. https://www.ferrocarrilcentral.com.pe/ourtravels_files/img_2170.jpg

33. Guanay Cormorant
https://en.wikipedia.org/wiki/Guano

34. Guano in the Chincha Islands
https://en.wikipedia.org/wiki/Guano

35. • He returned to the ship after the captain of the ship promised to the
japanese authorities that he will be treated well. But this not
happened and the authorities decided that the coolies should be set
free and return to China.
• The Peruvian government complained before the Japanese
government but as there was no diplomatic relations, negotiations
began and in 1873 Peru and Japan established diplomatic links.
• The following year diplomatic relations were established with China.
• Most of the Chinese who came to Latin America were tricked to go,
chetead and promised many things (as to earn a lot of money) but got
a near slave situation treatment.

36. Asian Latin American population https://en.wikipedia.org/wiki/Asian_Latin_Americans
Country Chinese Indian[18] Japanese Korean[19] Filipino Others References
Argentina
120,000[citation
needed] 1,600 35,000 22,024 15,000 2,000
Bolivia 14,000 640
Brazil 251,649 9,200 1,705,685 49,419 1,000 [5][20]
Chile 1,500 4,000 2,249
Colombia
160,000[citation
needed] 5,000 2,980[21] 12,000 5,000 17,000 [22][23]
Costa Rica 7,873 16 351 730 [24]
Cuba
112,000[citation
needed] 84
Dominican
Republic
50,000[citation
needed] 200 847 518
Ecuador 7,000 100 434 1,418
El Salvador 2,140 55 176 1,272 103
Guatemala 2,000 288 9,921 [25]
Honduras 123 160 406 1,107
Mexico 70,000[26] 2,258[27] 35,000[28] 30,000[29] 200,000[30] 1,300[31]
Nicaragua 10 145 531
Panama
135,000[citation
needed] 2,164 456 306
Paraguay 9,484 5,229
Peru
1,300,000[citation
needed] 145 160,000[32][33][34] 812 [5][35]
Puerto Rico >2,200 823 10,486 45 9,832
Uruguay ~100 456 152
Venezuela
420,000[citation
needed] 680 2,000 325 10,000

37. • Peru was the first country in Latin America to establish diplomatic
links with Japan and China. Mexico for example established
diplomatic links with Japan in 1888. Mexico and Imperial China
established diplomatic relations in 1899.
• Few chinese came to Peru later (until the beginning of the 1990s).
• In 1899 began the inmigration of japanese to Peru. From that year up
to the middle of the 1920s around 25 thousand come to Peru.
• As a result of early Chinese and japanese immigration, in Peru there is
the large chinese community in Latin America, and the second largest
Japanese community in the región (after Brazil).

38. • Its is said that perhaps 5% of Peru´s population is of Chinese descent. Peru
population is of around 31 million.
• Most of the Chinese that come during the XIX century got married with
local women. In the case of Japanese most of them brought their women
later.
• To Cuba Chinese began arriving from 1847 to work in sugarcane
plantations. To Mexico Chinese began arriving in large numbers from the
1870s.
• Most of the Chinese who arrived to Latin America in this period came from
the province of Canton (Guangdong 广东). The reason is that this place is
north of Macau (澳门) from where the Chinese embarked to go abroad
during this period.

39. • https://www.facebook.com/worldeconomicforum/videos/101535498
58561479/?pnref=story

40. • It is interesting to notice that in Peru even if 5% of Peru
population is of Chinese origin many of them have no Chinese
surnames and no Chinese physical characteristics. What
happened is that with time there have been a lot of
intermarriage of Chinese with Peruvians and so the surname
and the Chinese physical characteristics have been lost.
• Also it should be noted that because of the harsh conditions
in the fields, some of them flee and they went to places far
away to avoid being prosecuted. Some of them changed their
surnames to avoid been caught by authorities. Also some of
them adopted the surnames of their patrons after finishing
the work contracts.

41. • Additionally, as some of them settled in small towns, when
they registered to the local authorities, and especially when
they had their children, at the moment of registering their
surnames, the local authorities often misspelled their
names and surnames in the documents, certificates of birth,
and of marriage, so their names and surnames become
different from the original ones.

42. IV. China and Latin America economic relations: Trade, Investment and
Cooperation I
• The presence of China in Latin America is increasing. China has become the
second trade partner of the region (for some of them it is already the first).
• If we exclude Mexico (which trade a lot with United States), China is the
biggest trade partner of the region.
• China is also becoming a big investor in Latin America, specially in the
natural resource sector.
• China is proposing the construction of a bioceanic railroad linking Peru and
Brazil. This will increase Chinese presence not only in the field of trade but
also in investment in infrastructure projects.
• It could compete with the route of the Panama channel, and also there is
the option of building a channel through Nicaragua

43. • From the last decade trade between China and Latin America has
increased very fast.
• Most of Latin American exports are primary godos: mineral, energy
and agricultural goods.
• Most of import of goods from China are manufactured goods.
• The región has a trade deficit with China, especially Mexico
• Cheap manufactured goods has improved the standard of living of
many Latin American but also caused strong competition to
manufacturers in the región.

44. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” http://www.cepal.org/en/publications/38197-latin-america-and-
caribbean-and-china-towards-new-era-economic-cooperation,

45. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” http://www.cepal.org/en/publications/38197-latin-america-and-
caribbean-and-china-towards-new-era-economic-cooperation, Page 37

46. International price index of raw materials, 1992-2015: Metals and energy. (January 2005=100)
Source: CEPAL: “Hacia una nueva gobernanza de los recursos naturales en America Latina y el Caribe”, 2016

47. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” http://www.cepal.org/en/publications/38197-latin-america-and-
caribbean-and-china-towards-new-era-economic-cooperation,

48. CHINA POSITION AS TRADE PARTNER IN LATIN AMERICA (EXPORTS AND IMPORTS, 2000 AND 2012)
Source: CEPAL: “Promoción del Comercio y la Inversión con China” noviembre del 2013

49. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” http://www.cepal.org/en/publications/38197-latin-
america-and-caribbean-and-china-towards-new-era-economic-cooperation,

50. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” ttp://www.cepal.org/en/publications/38197-latin-america-and-
caribbean-and-china-towards-new-era-economic-cooperation,

51. • The next Table is from the study “Latin American Economic Outlook
2016 : Toward a New Partnership with China” published by
OECD/ECLAC/CAF in 2015

53. South America´s export of natural resources and destination regions
Source: CEPAL: “Hacia una nueva gobernanza de los recursos naturales en America Latina y el Caribe”, 2016

54. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” http://www.cepal.org/en/publications/38197-latin-america-and-caribbean-and-china-
towards-new-era-economic-cooperation,

55. • Regarding investment, in the last years Chinese companies are
investing large amounts in Latin America, especially in the primary
sector.
• But it is no easy to get the exact figures because official statistics does
not register it, or because Chinese companies invest form places
outside China, like from Australia.

56. Source: CEPAL, May 2015: “Latin America and the Caribbean and China: towards a new era in economic cooperation” http://www.cepal.org/en/publications/38197-latin-america-and-caribbean-
and-china-towards-new-era-economic-cooperation,

57. Source: CEPAL: “The changing nature of Asian- Latin America economic relations”, page 22

58. Source: ECLAC: 2012 Foreign Direct Investment in Latin America and the Caribbean, page 37

59. Source: ECLAC: 2015 Foreign Direct Investment in Latin America and the Caribbean, page 30

60. Source: ECLAC: 2015 Foreign Direct Investment in Latin America and the Caribbean, page 30

62. • As can be seen in the following Graphics, China is the biggest source
of lending for Latin America, specially for some countries.
• It lends more money than the World Bank and the IMF put togheter
• Since 2005 to 2015 China has lent more than 125 billion dollars to the
region, and more than a third of this was to Venezuela.
• The next Graphic is from the study “Latin American Economic Outlook
2016 : Toward a New Partnership with China” published by
OECD/ECLAC/CAF in 2015

64. Source: Dialogo Chino: “China aumenta préstamos a Latinoamérica” http://dialogochino.net/china-aumenta-prestamos-a-america-latina/?lang=es

65. V. China and Latin America economic relations: Trade,
Investment and Cooperation II
• In the last years, beside investing in the mining and oil sector, Chinese
companies are trying to buy or rent agriculture land, to grow food for
export to China.
• There has been some deals, but buying or renting land by foreign
company is a very sensitive issue in many places. There have been
opposition for some deals, as the one in Argentina which could have
involved 300 thousand hectares and an amount of 1.5 billion dollars
in the region of Rio Negro.

66. Source: The Inter-American Dialogue, China and Latin America Report, June 2015, Margaret Myers and Guo Jie: “China´s Agricultural Investment in Latin America: A critical assessment”, page 12

67. Source: The Inter-American Dialogue, China and Latin America Report, June 2015, Margaret Myers and Guo Jie: “China´s Agricultural Investment in Latin America: A critical assessment”, page 14

68. • Regarding investment in infrastructure proyects, there has been
Chinese participation in some of them, like the building of railways in
Argentina and Venezuela.
• But in several others there have been some problems.
• In November 2014 Mexico cancelled a 3.7 billion dollars contract to
build a high speed rail that would have linked Mexico city and
Queretaro, in central Mexico. China Railway Construction Company
and 4 Mexican companies would have built that. The project was
cancelled amid acussations that one of those Mexican companies had
links with the wife of President Enrique Peña Nieto.

69. • There are bigger proyects like the construction of power plants in
Argentina and the biocenaic railway linking the Pacific and Atlantic
oceans.
• In Argentina Chinese companies would build and finance the fourth
and fifth nuclear reactors. These could cost around 15 billion dollars.
The contract was signed before the former government finished its
mandate. There is a new government from december 2015.
• The bioceanic railway could cost between 10 and 30 billion dollars. It
is supposed that the Chinese government has already presented in
May the economic feasibility study of the project to the governments
of Peru and Brazil and is awaiting a reply.

70. Source: http://world-nuclear.org/information-library/country-profiles/countries-a-f/argentina.aspx

71. Possible route of the bioceanic railroad
Source: El Comercio. 2015. Blog Vía China “La ruta de la seda se extiende a Sudamérica”. El Comercio. Lima, 17 de mayo. Consulta: 24 de junio de 2015.
<http://elcomercio.pe/blog/viachina/2015/05/la-ruta-de-la-seda-se-extiende-a-sudamerica>

72. • China has interest in the bioceanic project because it will cut the time
and cost to move goods from Brazil, like meat, soybean, iron ore
(avoiding to go through the Panama Channel), and its companies
could participate in the design, planning and construction of the
railway. Chinese companies have excess capacity in many areas.
• Already a company like CREEG (an affiliate of China Railway Group
Limited),has offices in Peru and Brazil for this project.

73. http://asia.nikkei.com/Business/Trends/The-Chinese-steel-industry-s-moment-of-truth

74. VI. China and Latin America economic relations: Trade,
Investment and Cooperation III
• Here we will talk about relations between Peru and China, because
Peru has a special relationship with the Asian giant.
• As has been said before Peru became the first country in Latin
America to receive Chinese immigration in a large scale from 1848.
That is why Peru has the largest community of Chinese origin in Latin
America.
• Peru became in 1874 the first Latin American country to establish
diplomatic relations with China
• Peru has a Free Trade Area agreement with China since 2010, and
from 2013 they have a comprehensive strategic partnership

75. Exports from Peru to main partners in Asia members of APEC (in million dollars) (FOB)
Source: Source: Peru’s Customs Office:
http://www.aduanet.gob.pe/aduanas/informae/BalContiZonaPais_01122011.htm
For 2014 http://www.mincetur.gob.pe/newweb/Portals/0/documentos/comercio/RM_Expo_Diciembre_2014.pdf
Pag. 4
Country/Economy 1993 1997 2003 2006 2008 2010 2011 2014
World Total 3,344.40 6,741.75 8,939.82 23,431.43 31,162.75 35,073.25 45,636.0 38,161.70
Australia 14.99 16.31 53.12 38.25 79.81 117.5 115.3 127.0
South Korea 59.36 91.50 176.34 545.27 551.69 894.9 1,694.9 1,207.80
China 140.84 490.06 676.96 2,267.27 3,737.24 5,425.9 6,961.4 6,968.00
Hong Kong 28.60 68.82 30.31 42.14 54.21 78.5 92.5 155.30
Japan 299.04 473.57 391.16 1,229.76 1,853.18 1,790.4 2,174.8 1,580.20
New Zealand 1.50 - 3.72 7.59 12.60 13.5 18.4 30.3
Russia 9.90 9.48 14.18 25.61 21.74 57.9 79.5 137.8
Taiwan 118.78 159.11 147.28 415.03 596.11 293.0 368.8 316.00

76. • China became from 2011 the top export destination and from 2014
the top trade partner of Peru
• Then Peru’s Minister of Economy Mr. Luis Castilla said on October
2011 that he “prays every day” for China economy to continue
growing at high rates because that way Peru will benefit from that. If
China economy reduces its pace of growth there will be less demand
for Peru raw materials, prices, of specially minerals, will decrease,
exports revenue will decrease and the country will be affected. In fact
this happened from 2012.
• Peru exports mainly raw materials while buys from China mostly
manufactured goods.

77. Source: Annual Report 2015, Central Bank of Peru

78. • Actually China is the biggest market for Peruvian exports. China buys
most of the iron and fishmeal, and more than half of the copper and
more that one third of the zinc that Peru sells abroad. And China
became in 2014 the first source of imports, above the U.S.
• In the other hand, most of the textiles and garments imported by
Peru came from China as are also toys, footwear, electrical appliances
and most of the consumer goods, and increasingly cars.
• Cheap manufactured goods from China have helped improve the
living standards of many Peruvians, especially of poor people.
• But also cheap Chinese goods has represented a strong competition
to some manufacture sectors in Peru

79. TOP 11 PRODUCTS EXPORTED TO CHINA, 2013
PRODUCT Millions of Dollars
FOB value
Total 7,331
Copper ores and concentrates 3,338
Copper cathodes 1,020
Fishmeal 856
Iron ore 855
Zinc ore 203
Lead ore 195
Silver ore 182
Zinc, not alloyed 100
Cuttle fish and squid 91
Other gasoline without lead
tetraethyl
58
Fresh grapes 45
Ores and Fishmeal (8 products): 92% of total
Source: ADUANAS DEL PERU
http://www.aduanet.gob.pe/aduanas/informae/XPaisPartMensual_01122013.htm

80. Peru imports from main partners in Asia members of APEC (on million dollars) (CIF)
Source: Peru’s Customs Office:
http://www.aduanet.gob.pe/aduanas/informae/BalContiZonaPais_01122011.htm
For 2014 http://www.mincetur.gob.pe/newweb/Portals/0/documentos/comercio/RM_Impo_Diciembre_2014.pdf
1993 1997 2003 2004 2007 2010 2011 2014
World
Total
4,024.5 7,716.9 8,428.5 10,111.4 20,464.2 29,879.5 37,699.0 42,196.8
Australia 17.3 33.0 28.1 46.8 67.5 75.0 110.6 132.2
South
Korea
99.4 230.2 277.7 296.5 522.3 1,044.2 1,490.6 1,382.4
China 90.4 195.9 646.5 767.9 2,474.2 5,115.3 6,321.5 8,913.7
Hong Kong 12.2 17.0 15.1 21.9 16.5 22.8 15.7 16.7
Japan 303.6 417.9 367.4 358.8 790.3 1,366.9 1,307.1 1,106.1
New
Zealand
45.9 - 16.2 23.3 22.4 56.4 67.8 129.0
Russia 15.2 21.9 56.3 44.7 136.3 183.4 513.2 318.0
Taiwan 60.1 112.0 133.5 151.1 258.4 327.8 439.7 423.9

81. TOP 10 PRODUCTS IMPORTED FROM CHINA, 2013
PRODUCT Millions of dollars
CIF Value
Total 7,921
Mobile Phones 730
Data processing machine 459
Motorcycles 136
Vehicles 111
Telecommunications devices 98
Other polyethylene terephthalate
with titanium dioxide
84
Other footwear with top of textile and
rubber sole or plastic
84
Other footwear 80
Other wind power generators 69
Other TV sets 76
Source: ADUANAS DEL PERU: http://www.aduanet.gob.pe/aduanas/informae/MPaisPartMensual_01122013.htm

82. Peru: Antidumping duties in effect
Source: INDECOPI, Reporte de Estadísticas Institucionales, Reporte Mensual, abril 2016, página 30

83. • Foreign Direct Investment (FDI) in Peru has increased a lot in the last years
• China investment in Peru was nil up to 1992. That year, Shougang
Corporation (首钢集团) bought the state company Hierro Peru that
exploits iron. It was the first big sale of a Peruvian state company after the
government began in 1990 a process of economic reforms and opening of
the economy to foreign investment.
• China interest in securing sources of raw material was the reason behind its
decision to buy the Peruvian company. It was one of the first biggest
investments by a Chinese state company of a foreign asset outside Asia.
Shougang paid around 120 million dollars for that. The mine that Shougang
bought is the only one that produces iron ore in Peru

84. • China investment is mainly in mining, but also in oil and fishmeal sectors
• In April 2014 the company resulting from the merger of Glencore and
Xstrata agreed to sell the copper project Las Bambas located in Apurimac,
and sold it for $5.85 billion to a Chinese consortium led by MMG Ltd.,
which is owned by China Minmetals, and included Guoxin International
Investment Corp. and Citic Metal Co. When the mine come into full
production it could increase by more than a third the amount of copper
produced in Peru
• On November 13 2013 it was announced that China National Petroleum
Company through its listed company PetroChina bought Petrobras Peru
unit for $2.6 billion. The Chinese firm bought all the shares of Petrobras
Energia Peru S.A., which has three oil and gas fields in Peru

85. PERU: ESTIMATED PORTFOLIO OF MINING PROJECTS BY MAIN INVESTOR, March 2016
Source: Ministerio de Energía y Minas: “Cartera estimada de proyectos mineros, Marzo 2016

86. Current and future
investments announced
by Chinese companies
Source: Ministry of Energy and Mines of Peru,
Peruvian newspapers and official companies’
websites (Table elaborated by Maria Isabel
Osterloh)
Company
Name
Project
Sector Place
Resource /
Product /
Service
Investment
Amount
(Millions of US
$)
Comments
Shougang Hierro Peru
S.A.A.
Marcona
Expansion
Mining Ica Iron 1,500
Possibly starts on December, 2018.
Chinalco Peru S.A. Toromocho
Expansion
Mining Junin Copper 1,350
Possibly starts on January, 2018.
Las Bambas S.A.
(MMG Limited)
Las Bambas Mining Apurimac Copper 10,000
With Environmental impact study
approved.
Under construction.
Started on March, 2016.
Shouxin Peru S.A.
Exploitation
of mining
tailings
Mining Ica
Copper, Iron,
Zinc
239
With Environmental impact study
approved.
Under construction.
Started on 2016.
Jinzhao Mining Peru
S.A.
Pampa de
Pongo
Mining Arequipa Iron 1,500
With Environmental impact study
approved.
Possibly starts on January, 2018.
Junefield Group S.A.
Don Javier Mining Arequipa Copper 600
Exploration Stage.
Lumina Copper S.A.C
Galeno Mining Cajamarca
Copper,
Silver, Gold,
Molybdenum
2,500
Exploration Stage
Possibly starts on 2017.
Rio Blanco Copper
S.A.
Rio Blanco Mining Piura Copper 1,000
Exploration Stage
Possibly starts on 2019.
China National
Petroleum
Corporation
Block 58 Energy Cuzco Oil, Gas 1,300
Finished exploration stage.
COPEINCA (China
Fishery Group CFG)
-- Fisheries
Bayovar,
Chicama,
Chimbote,
Chancay,
Lima, Ilo
Fishmeal, fish
oil
800
CFG bought Copeinca in 2013.
It controls the largest anchovy
share quota assigned to fishing.
ICBC PERU BANK
(Commercial Bank of
China ICBC)
-- Finance Lima
Deposits,
transfers,
foreign trade,
finance,
bonds cards,
loans, etc
50
Operates since 2014
First Chinese-owned bank in
entering the Peruvian financial
system.
Heixing Electrical
Company S.A.C.
-- Trade Lima -- 0,3
It has a regional sales and support
office in Lima.

88. Fishmeal exports by Company in million dollars and Anchovy fishing quota
percentage by company
Source: Suplemento Día 1, página 25, Diario El Comercio, 18 de enero del 2016

89. • China companies has a big presence in the mining and energy sectors
• The only mine producing iron is owned by Shougang Corpration. Two
Chinese owned mines, Toromocho and Las Bambas, when will enter in full
production, by the year 2017-2018, could produce around 40% of Peru
copper production.
• The oil company Chine National Petroleum Company has several fields in
the north of Peru and in the jungle and after buying the operations in Peru
of Petrobras company will probably produce 30% to 40% of the country
total oil and gas
• Some of those companies have problems, with the labor unions as in the
case of Shougang, or with local communities as in the recent case of Las
Bambas (and there have some concern with impact in the environment).

90. • China is an important economic partner of Peru. It is the biggest market for
its exports, and an important source of investment. These two roles will
increase in the future. China’s need for raw materials will increase and its
companies are looking to control the source of these raw materials.
• China economic growth at high rates is also important for Peru. In the last
three years prices of minerals decreased because of a slowdown in China
economy and this has affected Peru.
• Also, Peru has big expectations on increasing exports to the Chinese market
thanks to the Free Trade Area, but this will depend on producing goods
suitable for its consumers.
• This year Peru is hosting the APEC forum Leaders´ Summit in November
and President Xi Jinping will visit Peru. Last year Prime Minister Li Keqiang
also visited Peru.

91. VII. The present day: Chinese community in the region and
influence of Chinese culture
• Chinese arrived to Latin America mainly in four periods. A few of
them arrived with the Galleon trade.
• The second and in this case massive immigration began from the end
of the 1840s when China was opened to the world.
• The third wave of China immigrants came in the 1940s with the civil
war and turmoil in China.
• But a fourth wave of Chinese began arriving to the region from the
1990s onwards.
• During the first two waves Chinese coming to Latin America where
mostly from Guangdong, and poor people.

92. • It should be noted that from 1970s to 1990s some people from Taiwan
came to Latin America, but from the 1990s they were mainly from China.
• The Chinese coming from Taiwan mostly of them came with their family
and some savings, and put some business. In Peru for example they set up
restaurants and some shops.
• Chinese coming from the 1990s were not only from Guangdong province
but also from Fujian and other places.
• They did not have enough money to set up business. They later brought
their families.
• They arrived in legal and sometimes illegal ways.

93. • In Peru up to some years ago there was a conflict between Chinese
which came from Taiwan and those from China.
• They even have 2 schools. “Colegio 10 de Octubre” and “Colegio Juan
XXIII”. The first was from chinese from Taiwan. Both offer primary and
secondary education and teach Chinese language.
• In Peru there are some publications of the Chinese community, as
magazines and newspapers, even in Chinese. One of the most old is
the Revista “Oriental” that celebrated 80 years two monts ago.

94. • Now there are several Chinatown (Barrio Chino - 唐人街-) in Latin
America. The biggest are in Mexico city, Havana, Buenos Aires and
Lima.
• Chinese are organized in some associations, in accordance to their
place of origin. In Peru mostly are from Guangdong, but also from
Fujian.
• In some places there have been some problems with some chinese
businessman suffering extortion by some criminal (chinese) groups.

95. Weak state and Strong Society: A research into
extortion among Chinese immigrants in Argentina
Jiameng Li*
• ABSTRACT
• Amid Chinese-owned supermarkets in Argentina there are problems of extortion exerted
by Chinese criminal groups. A large number of Chinese businessmen have been hit by
such extortion activities and some have even suffered from extortion-related violence,
with forty Chinese shopkeepers murdered. This not only poses a challenge to Argentinian
authorities that are under pressure to combat the crime but can also have troubling
implications for Argentine-Chinese relations. The essay aims to explore how such
extortion is carried out in Argentina, and also the reasons behind this organised crime. It
first looks at the history of Chinese migration to Argentina. Then it examines the fact of
such extortion through the framework of Extortion Racket Systems, including who the
criminals are and how they operate within the Chinese community in Argentina. The last
part deals with the factors leading to the extortion by using the theory of State in
Society. Through the analysis, we can see that such extortion can be seen as a
consequence of the interplay between Argentina’s state weakness and the Chinese
community’s lack of integration and some cultural issues.
• Keywords: extortion, Chinese immigrants, Argentina, weak state, strong society

96. Arc in the entrance of Chinatown in Lima, Peru
https://www.google.com.pe/search?q=peru+chinatown&espv=2&biw=1366&bih=667&tbm=isch&imgil=z3_ksXy8QMIWsM%253A%253BuDXhGG741pfgQM%253Bhttp%25253A%25252F%252
52Fperutravelerblog.com%25252Fplaces%25252Fchinatown-barrio-chino-lima-
peru%25252F&source=iu&pf=m&fir=z3_ksXy8QMIWsM%253A%252CuDXhGG741pfgQM%252C_&usg=__sUCp6Aipy8aT2Td2SuzkjwwGNsA%3D&ved=0ahUKEwjJ4JOQ1LnNAhXCJCYKHQSDARY
QyjcISg&ei=D3tpV4mdLcLJmAGEhoawAQ#imgrc=htoCa7BOhi2z0M%3A

97. Chinatown in Buenos Aires
http://asiapop.xiahpop.com/paseando-barrio-chino-buenos-aires/

98. • Chinese influence can be seen for example in the food. There are
Chinese restaurants everywhere, in Peru specially, called “Chifa” (吃
饭 ). They are cheap, deliciuos and abundant. While most of them
serve Cantonese food, now also in some places can be found food
from Shanghai or Sichuan.
• In Peru people eat a lot of rice, probably because of influence of
chinese. Also chinese ingredients can be found in many Peruvian
supermarkets
• Some peruvians of chinese origin for example have achieved highest
possitions in their fields, as artists, deportists, doctors, or even
politicians.

99. VIII. Towards a new type of China Latin America relationship
• China has FTA with three countries from Latin America. With Chile since
2006, with Peru since 2010 and Costa Rica since 2011.
• China will continue being an important partner of Latinamerica and its role
will increase in the future
• There is a recognition that some aspects of the relationship should be
improved.
• One is the still asymetric trade relationship. Latinamerica depend so much
on the export of the natural resources to China, and with prices of them
lower the región has suffered some setbacks.
• Second, Chinese investment is concentrated in the natural resource sector.

100. • Third is the low level of understanding of each other. Still people on
both sides see each of them as distant.
• The next Graphic is from the study “Latin American Economic Outlook
2016 : Toward a New Partnership with China” published by
OECD/ECLAC/CAF in 2015

102. Source: IMF, World Economic Outlook, april 2014, page 36

103. International price index of raw materials, 1992-2015: Metals and energy. (January
2005=100)
Source: CEPAL: “Hacia una nueva gobernanza de los recursos naturales en America Latina y el Caribe”, 2016

104. International price index of copper, 2000-2015 (January 2000=100)
Source: CEPAL: “Hacia una nueva gobernanza de los recursos naturales en America Latina y el Caribe”, 2016, Page 105

105. International price index of iron ore, 2000-2015 (January 2000=100)
Source: CEPAL: “Hacia una nueva gobernanza de los recursos naturales en America Latina y el Caribe”, 2016, Page 106

106. • The next Graphic is from the study “Latin American Economic Outlook
2016 : Toward a New Partnership with China” published by
OECD/ECLAC/CAF in 2015

108. http://www.gatesnotes.com/Books/Making-the-Modern-World

109. http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/24/how-china-used-more-cement-in-3-years-than-the-u-s-did-
in-the-entire-20th-century/

110. Fuente: BBC News: “China market slump: Shares end lower despite rate cut” http://www.bbc.com/news/business-34059482 (accedido 28 de agosto, 10.18 pm.).

112. • President Xi Jinping in the 1st Forum of China and the Community of
Latin American and Caribbean States (CELAC) celebrated in Beijing in
January last year, outlined a strategy to double the amount of trade
and investment with Latin America.
• The aim is to reach a trade volumen of 500 billion dollars in the year
2025 and 250 billion dollars in investment.
• Prime Minister Li Keqiang in his July visit last year to several countries
in Latin America set up several funds to promote Chinese investment
in industrial projects in the region.
• This is the year of cultural exchanges between China and Latin
America

113. • China is in a new state of development, with a growing middle class
and urbanization and there is new demand for productos that Latin
America can supply.
• Chinese are eating more bread, meat, drinking more wine, and Latin
American countries can supply them. More wheat, soybean, but also
more grapes, avocado, mango, asparagus (the last four products are
being exported by Peru in the last years).
• The growing urbanization of China is also demanding housing and
furniture. Wood products are used for example for wood floors and
furniture. Peru, Chile and others countries can supply them.

114. • Actually there are 45 Confucius Institutes in Latin America where
70,000 students learn Mandarin and about Chinese culture.
• Chile was the first country in the region to establish a Confucius
Institute.
• In Peru there are 4 Confucius Institutes and there is a possibility that
one more will open soon, in my University, San Marcos National
University.
• There is the Community of Latin American and Caribbean States
(CELAC) and last January there was the first China-CELAC forum in
Beijing.

115. • China and Latinamerica can strengthen their trade, investment and
other economic ties, and expand their people-to-people exchanges.
• It is important knowing better each other to avoid
misunderstandings.’
• There is a need to know the Chinese market to sell more value added
goods and also to industrialize more the country (and need to learn
from China development experience).
• There is a need to change the pattern of asymmetric trade between
China and Latin America, but that mostly depend from the Latin
America side.

116. • In order for Latinamerica to produce more value added good it needs
to industrialize its natural resources. It needs more skilled labor force
and to graduate more enginers and scientists
• In Latinamerica too many people in the Universities study liberal arts
and social sciences. In China more people are studying engineering
and exact sciences.
• Many in Latinamerica want to become lawyers (abogado)
• In the PISA (Program for International Student Assessment) 国际学生
评价项目, China is in the top ranks while several latin American
countries are in the bottom of the list.

117. HUMAN CAPITAL AND SKILLS IN CHINA, AND LATIN AMERICA
Science, Technology, Engineering and Mathematics (STEM); Humanities, Social Sciences, Law and Education (HSLE)
http://www.keepeek.com/Digital-Asset-Management/oecd/development/latin-american-economic-outlook-2016_9789264246218-en#page208

118. • In China Universities 48% of students study in the STEM (Science,
Technology, Engineering and Mathematics) áreas, 24% in HSLE
(Humanities, Social Sciences, Law and Education) areas
• In Argentina 13% in STEM and 61% in HSLE
• Brazil 12% and 64%
• Costa Rica, STEM 12%, HSLE 69%
• Colombia 21% and 63%
• Mexico 27% and 62%
• Uruguay 15% and 49%
• In OECD countries 22% and 56%

119. • http://www.shedunews.com/2013pisa.html

120. • China is in a new kind of relationship with Latinamerica. When the People´s
Republic of China began having diplomatic relationship with the region, in
the 1970s, its aim was to secure countries recognize it as the sole
representative of China. At that time countries have diplomatic relations
with Taiwan. In october 1971 the UN recognized China and expelled the
Republic of China (Taiwan).
• Now few countries recognize Taiwan, most of them are in Latinamerica (12
of a total of 22 countries). They are Honduras, Panama, Nicaragua,
Paraguay, San Salvador, Guatemala, Haiti, Dominican Republic (among
others).
• When China began its economic reforms at the end of the 1970s, its aim
was more economic, ensuring natural resources for its needs.

121. • Now from the year 2010s China aims to have a more comprehensive
relationship with Latinamerica. China see Latinamerica as a country
that can supply them natural resources, but also as a market for its
godos.
• But China wants to have a more closed relationship with economic
cooperation, industrial cooperation. China states that it wants to help
industrialize the región.
• China aims also for a better understanding of the región in the
cultural aspect.
• China has a strategy in its relationship with Latinamerica, does
Latinamerica has one?

122. • Most of Latin American (LA) countries have no strategy towards
China. They just react to China policies.
• Nor they have a common strategy towards China. For example in one
side there are the countries of he Pacific Alliance (PA), Mexico, Chile,
Peru and Colombia, more open to trade and investment, and in the
other hand countries in the Atlantic Ocean like Argentina, Brazil and
Venezuela, which are more protectionist.
• But even within members of the PA Mexico and Colombia for example
will not contemplate signing a FTA with China.

123. • Now things are also changing in LA with countries shifting from the
political left (and very friendly to China) to a more market friendly
regimes. In Argentina there is a new government for example. In
Venezuela there will be a change from the present leftist regime.
• Leftist governments enjoyed a situation where prices of primary
goods were high and are being ousted from the government because
of a slowdown of those prices.
• It is the classic political pendulum that characterize countries in Latin
America.
• China have to dealt with this new scenario.

124. Bibliography
• Han Qi, Dolors Folch, Fernando Zialcita and Carmen Yuste editors: “El
Galeon de Manila - Los orígenes de la Globalización-”, 2013
• “Confucius Institutes help Latin Americans learn Chinese language,
culture: educator”: http://www.newsgd.com/culture/2016-05/03/content_147031658.htm