Published by ChinaMNC · Lanzhou
China-Peru Free Trade Agreement Upgrade: What Foreign Founders Need to Know
The upgraded China-Peru FTA took effect on November 1, 2026, introducing new rules on standards, e-commerce, supply chains, and investment. Here’s a practical overview for foreign founders operating or registering a company in China.
Upgraded China-Peru FTA Takes Effect
The upgraded free trade agreement (FTA) between China and Peru officially entered into force on November 1, 2026. The Protocol to Upgrade the China-Peru Free Trade Agreement was signed on November 14, 2024, following the conclusion of negotiations announced in June 2024. Both sides have completed their domestic ratification procedures. For foreign founders with business interests in China or Peru, the upgrade brings new rules and commitments that could affect trade, investment, and operational planning.
Background: A Long-Standing Trade Relationship
China and Peru are comprehensive strategic partners with highly complementary economies. China is Peru’s largest global trading partner, largest export market, and largest source of imports. Peru is China’s fourth-largest trading partner in Latin America and an important investment destination. The original China-Peru FTA was signed in April 2009 and entered into force in March 2010—the first comprehensive FTA China signed with a Latin American country. Bilateral trade reached US$50.4 billion in 2025, nearly seven times the US$6.4 billion recorded in 2009. The upgrade negotiations were launched in November 2018.
Key Highlights of the Upgrade
The upgraded protocol introduces new chapters and refines existing ones, aiming to improve the business environment and create more trade and investment opportunities for companies from both countries. For foreign founders, these changes may influence how they structure operations, source goods, and invest across the two markets.
1. Modernized Rules and New Issue Areas
The upgrade adds standalone chapters on standards cooperation, competition policy, electronic commerce, global supply chains, and the environment. It also refines existing chapters on rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary (SPS) measures, intellectual property, trade in services, temporary entry for business persons, and investment.
Notably, the global supply chains chapter encourages multimodal transport and promotes the development of foreign trade logistics corridors and infrastructure—an innovative feature under the FTA that signals both sides’ commitment to keeping supply chains stable and open. The standards and conformity assessment cooperation chapter establishes a dedicated cooperation mechanism and an indicative list of cooperation areas, creating a platform for mutual recognition and cooperation on standards. This could help reduce trade costs for companies operating between the two countries.
2. Improved Trade and Investment Environment
On trade in goods, the upgrade includes provisions on electronic data exchange and completes the transposition of product-specific rules of origin. It sets detailed rules for customs clearance-related requests and responses, information exchange, cargo clearance, express consignment clearance, and clearance of perishable goods. It also raises transparency requirements for SPS laws and regulations and establishes a consultation mechanism to address technical issues promptly.
On services and investment, the upgrade adds four new annexes covering professional services, transport services, cultural and audiovisual services cooperation, and telecommunications services, enhancing regulatory cooperation in these areas. It introduces provisions for expedited application procedures for business persons seeking entry, aiming to improve visa processing efficiency. The investment dispute settlement mechanism is significantly improved, with detailed provisions on most-favored-nation treatment and expropriation, providing stronger safeguards for mutual investment.
3. Future-Oriented Commitments
The two sides agreed to launch negotiations on negative lists for trade in services and investment within two years after the protocol enters into force. This is expected to further liberalize services trade and investment and unlock potential in bilateral trade and investment. Additionally, both sides committed to reviewing the competition chapter every two years to assess the possibility of making higher commitments.
Implementation and Resources for Businesses
China has completed its preparations to ensure smooth implementation. The text of the upgraded protocol is available on the China Free Trade Area Service Network (http://fta.mofcom.gov.cn), where enterprises and individuals can consult specific provisions and seek clarification. In addition, the General Administration of Customs has issued the revised Measures for the Administration of Origin of Imported and Exported Goods under the China-Peru FTA.
The Ministry of Commerce will work with relevant departments and local authorities to enhance publicity and services for enterprises, monitor the implementation, and maintain communication with Peru through the FTA implementation mechanism to promote high-quality implementation and help businesses benefit from the agreement.
What This Means for Foreign Founders in China
For foreign founders registering or operating a company in China, the upgraded FTA may offer practical advantages. If you import from or export to Peru, the refined rules of origin and customs procedures could streamline clearance and reduce costs. The new chapters on supply chains and standards cooperation may support logistics and compliance planning. The services and investment provisions, including expedited entry for business persons and improved dispute settlement, could facilitate cross-border movement of personnel and capital. As always, founders should review the specific provisions and consult relevant authorities or professional advisors to understand how the agreement applies to their business.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.