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China-Peru FTA Upgrade Takes Effect: What Foreign Founders Need to Know

The upgraded China-Peru free trade agreement entered into force on November 1, 2026, introducing new rules on standards, e-commerce, supply chains, and investment. Here is a practical overview for foreign founders operating in China.

China-Peru FTA Upgrade: Key Changes for Foreign Founders

On November 1, 2026, the upgraded free trade agreement (FTA) between China and Peru officially came into effect. The Protocol to Upgrade the China-Peru FTA was signed on November 14, 2024, following the announcement of the substantive conclusion of negotiations on June 28, 2024. Both sides have completed their domestic ratification procedures. For foreign founders registered or operating a company in China, this upgrade introduces new provisions that could affect trade, investment, and business operations between the two countries.

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 took effect in March 2010, making it 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.

What the Upgrade Covers

The upgraded protocol adds new chapters on standards cooperation, competition policy, e-commerce, global supply chains, and environment. It also refines existing chapters on rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, intellectual property, trade in services, temporary entry of business personnel, and investment.

Standards and Supply Chains

The new chapter on standards and conformity assessment cooperation establishes a dedicated cooperation mechanism and an indicative list of cooperation areas. This platform is intended to facilitate mutual recognition of standards and reduce trade costs for companies in both countries. The global supply chain chapter encourages multimodal transport and promotes infrastructure development for foreign trade logistics corridors—an innovative feature under the FTA that signals both sides' commitment to keeping supply chains stable and open.

Trade in Goods: Customs and Origin

For goods trade, 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 sanitary and phytosanitary laws and regulations and establishes a consultation mechanism to address technical issues promptly.

Services and Investment

In 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 entry of business personnel, aiming to improve visa processing efficiency. The investment dispute settlement mechanism is significantly improved, with refined provisions on most-favored-nation treatment and expropriation, providing stronger safeguards for mutual investment.

Future Liberalization: Negative List Talks and Competition Review

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 between the two countries. Additionally, both sides committed to reviewing the competition chapter every two years to assess the possibility of undertaking higher commitments.

Implementation and Resources for Businesses

China has completed its implementation preparations in accordance with the agreement. The full text of the upgraded 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 and seek clarification. The General Administration of Customs has also published 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 strengthen outreach and services for businesses, monitor the agreement's implementation, and maintain communication with Peru through the FTA implementation mechanism to promote high-quality implementation.

Practical Implications for Foreign Founders in China

For foreign founders with companies in China that trade with or invest in Peru, the upgraded FTA offers clearer rules and potentially lower costs. The improved customs procedures and origin rules can simplify import/export processes. The services and investment provisions, including expedited visa procedures for business personnel, may facilitate cross-border movement of staff. The new standards cooperation mechanism could reduce technical barriers for products. However, founders should carefully review the specific provisions and consult the official texts to understand how they apply to their business. The upcoming negative list negotiations may bring further opportunities for services and investment liberalization.

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.