US ally Peru’s new president’s first week in office

The new left-wing government led by Peruvian President Pedro Castillo quickly extended a friendly hand to China in its first week in office, Reuters reported on the 6th. Reuters said that China is Peru’s most important business partner and a major buyer of the country’s copper mine, and the copper industry is an important source of revenue for Peru.

Government sources told Reuters that since Castillo took office on July 28, government officials have met with Chinese ambassadors and Chinese mining executives. The two sides not only discussed industrial policies, but also discussed strengthening the free trade agreement signed for the first time in 2009.

Analysts said that although maintaining good relations with China has always been the top priority of recent Peruvian leaders, Castillo is still ready to tilt Peru to the left after successive central and right-wing governments.

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In addition to China, Peru has also signed a free trade agreement with the United States, which has been regarded as an ally of the United States for decades, Reuters said.

The report points out that Peru is the second largest copper producer in the world, and some Chinese enterprises in Peru are important copper miners. Castillo has said that he hopes to obtain higher tax revenue from mining companies and may push to tear up the tax stability agreements reached with many mining companies to prevent such tax rate increases.