Peruvian and Chinese political and business leaders met in Lima on Tuesday to discuss President Xi Jinping's new book on the governance of China, just days before the Chinese leader is to visit the South American country and attend the APEC Summit next week.
Copies of the Spanish version of President Xi Jinping's The Governance and Administration of China are available at the Peruvian-Chinese Friendship Center, where the discussion was held.
China's ambassador to Peru, Song Yang, and other dignitaries shared their views on the book at the discussion.
Congressman Gustavo Cordero Jon Tay, who also serves as the president of the Peru-China Parliamentary League, highlighted the Belt and Road Initiative proposed by President Xi, saying that it is a topic that is promoting development not only in the countries that are strategic allies and that have diplomatic and bilateral relations, but it is also an example for other countries to intervene in these partnerships in which they can cooperate in different ways.
President Xi's book sets out many examples of how China has developed its economy and improved the wellbeing of its inhabitants, which can be applied in Peru, former production minister Alfonso Velasquez told China Global Television Network (CGTN).
"The modernization that the participation of Chinese capital can bring is vital and from my point of view linked to agriculture, to family farming, to the social areas of necessary development in Peru, to be able to reincorporate the concepts of redistribution, the concepts of shared value," he said.
The former politician said that he hopes the massive Chinese market can bring opportunities to Peru not only in minerals and fruits, which requires large investment, but also demand production from small-scale farming.
Peru will host the Asia-Pacific Economic Cooperation Leaders' Meeting next week, which President Xi is expected to attend. With the strong China-Peru relationship comes an interchange of not just goods and services but knowledge too.
"China has private investment with a high range of technology and innovation, especially in artificial intelligence, which today is part of the Chancay multi-project and is very productive for us to be able to move forward. The regions require industrialization and China has the inputs, the tools and has everything so that the Peruvian state can take off," said Kelly Portalatino, a Peruvian congresswoman.
The Chinese-invested Chancay mega port, located 80 kilometers north of Lima, is nearing completion. Both China and Peru are betting that the project will become a major trade hub between Asia and Latin America.
Political, business leaders discuss Xi's new book in Lima
A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.
Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.
"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.
U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.
The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.
"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.
South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.
A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.
"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.
Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.
"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.
South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.
Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.
US tariffs rock South Africa’s auto industry
