Published · Guyana
China-Peru FTA Upgrade Takes Effect: What Foreign Founders Operating in China Need to Know
The upgraded China-Peru Free Trade Agreement took effect on November 1, 2026. Learn how new rules on standards, customs, services, investment, and supply chains affect foreign founders running companies in China.
China-Peru FTA Upgrade Enters into Force
On November 1, 2026, the Protocol to Upgrade the China-Peru Free Trade Agreement (FTA) officially took effect. The Protocol was signed on November 14, 2024, following the announcement of the substantive conclusion of negotiations by President Xi Jinping and then Peruvian President Dina Boluarte in Beijing on June 28, 2024. Both sides have completed their respective domestic ratification procedures. For foreign founders operating or registering a company in China, this development creates new trade and investment opportunities and updates the rules for doing business with Peru.
Background and Economic Ties
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, signed in April 2009 and effective since March 2010, was China’s first comprehensive FTA with a Latin American country. Bilateral trade reached USD 50.4 billion in 2025, nearly seven times the USD 6.4 billion recorded in 2009. The upgrade negotiations were launched in November 2018.
Key Highlights of the Upgrade Protocol
The upgraded agreement modernizes the original FTA and deepens commitments across several areas. For foreign founders, the changes may reduce trade costs, improve market access, and provide clearer rules for cross-border operations.
1. Higher Standards and New Disciplines
The Protocol introduces new standalone chapters on standards cooperation, competition policy, e-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 of business persons, and investment.
Notably, the global supply chains chapter encourages multimodal transport and promotes the development of foreign trade logistics corridors and infrastructure. This is an innovative feature under the FTA, signaling both countries’ commitment to maintaining stable and smooth supply chains. 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 of standards and reducing trade costs for companies.
2. Improved Trade and Investment Environment
For trade in goods, the Protocol includes electronic data exchange provisions and completes the transposition of product-specific rules of origin. It sets detailed requirements for responding to customs clearance inquiries, information exchange, cargo clearance, express consignment clearance, and clearance of perishable goods. It also raises transparency requirements for SPS-related laws and regulations and establishes a consultation mechanism to address technical issues promptly.
For services and investment, the Protocol adds four new annexes covering professional services, transport services, cultural and audiovisual services cooperation, and telecommunications services, enhancing regulatory cooperation in these sectors. It includes provisions for expedited application procedures for entry of business persons, improving visa processing efficiency. The investment dispute settlement mechanism is significantly improved, with detailed provisions on most-favored-nation treatment and expropriation, providing stronger protection for mutual investment.
3. Future-Oriented Liberalization
Both sides agreed to launch negotiations on negative lists for trade in services and investment within two years after the Protocol enters into force, aiming to further liberalize services trade and investment and unlock potential. Additionally, they committed to reviewing the competition chapter every two years to assess the possibility of undertaking higher commitments.
Implementation and Resources
China has completed all preparations for implementation in accordance with the agreement. The full text of the Protocol is available on the China Free Trade Area Service Network (http://fta.mofcom.gov.cn), where companies and individuals can inquire about specific provisions. 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 governments to enhance publicity and services for businesses, monitor implementation, and maintain communication with Peru through the FTA implementation mechanism to ensure high-quality implementation and help companies benefit from the arrangement.
What This Means for Foreign Founders in China
If you run a company in China that trades with or invests in Peru, the upgraded FTA may offer tangible benefits. Reduced trade costs through streamlined customs procedures and mutual recognition of standards can lower barriers. Improved investment protections and dispute settlement mechanisms provide greater certainty. The new services annexes may open opportunities in professional, transport, cultural, and telecom sectors. The commitment to future negative-list negotiations signals further liberalization.
To take advantage of these changes, ensure your business complies with the updated rules of origin and customs procedures. Consult the official texts and resources mentioned above, and stay informed about upcoming negotiations on services and investment.
Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.