, because it will strengthen Peru's economic relations with the Asian Giant.
Similarly, Minister Mucho asserted that trade ties between Peru and China must include technology transfer for the generation of local added value.
"China has truly become a key investor for our economy; therefore, President Dina Boluarte will consolidate and strengthen these ties even more. All of this must also include technology transfer," he told Red de Comunicación Regional (RCR).
Advantages
The Cabinet member mentioned that China has, for instance, several investments in Chile, but it does not have as much in mining as in Peru.
"It buys almost all metals, but it does not have energy companies; it has set up a research institute, but there is no research institute here in Peru. Personally, I consider that technology transfer will benefit Peruvians," he indicated.
Manufacturing leader
Minister Mucho emphasized that China has become the world's factory.
"China consumes almost 50% of all natural resources in the world, nearly 54% of all copper produced worldwide, almost 60% of iron, 50% of aluminum and so on with all metals. But if we average it, it consumes 50% of everything the world produces," he stated.
Mucho added that it is an economy where enormous works are carried out; urbanization is advancing, including the construction of houses, railway infrastructure, among others.
"It consumes many natural resources, many metals and, therefore, sets the pace of prices (…). Thus, it demands more, and prices also rise," he expressed.
Prices
The Cabinet member underscored that all metal prices are always rising due to high demand from China.
"It has been the top trading ally for almost 10 years. The nation we buy the most from is China, and the nation we sell the most to is China," he affirmed.
Mucho specified that the Asian country is also investing in mining and will become the largest investor in Peru's mining sector.
"It has three mines in operation and about four projects. It's likely that over US$20 billion in mining investment is made. It is now investing in energy; the entire transmission by (companies) Enel and Luz del Sur is Chinese. There are electricity generation plants, also in hydrocarbons at Block 58," he indicated.