Since 2013, one of the most important projects in modern history has become a reality. Returning to the ancient and millennial Silk Road, the Belt and Road Initiative is building more railways, implementing and improving airports and ports, and above all, interconnecting more the peoples of Eurasia and the world.
It should be noted that since Chinese President Xi Jinping announced the Belt and Road Initiative, the volume of trade between China and countries along the Belt and the Road has surpassed $6 trillion. Likewise, China's direct investment in these countries has exceeded $80 billion. In the same way, the Chinese government has indicated that this initiative is inclusive for all countries and peoples around the world.
From April 25 to 27, the Second Belt and Road Forum for International Cooperation will be held with the participation of representatives of over 150 countries and 90 international organizations. With the theme: “Belt and Road Cooperation: Shaping a Brighter Shared Future”, the Second Forum’s main objective is to achieve cooperation of the “highest quality” between governments.
With this second Forum, the Chinese government hopes to achieve a better exchange of views on future collaborative plans within the framework of the Belt and Road Initiative, for which it proposes maintaining an open, transparent and sustainable approach to the agreements that have been signed with some of the 126 countries that have already joined the initiative.
Despite western criticisms of the initiative, Foreign Minister Wang Yi has argued that the BRI is an “economic pie” that will benefit the development of the people and does not constitute a “debt trap”; China does not impose cooperation on any developing country and participating States and organizations approve the agreements
On the other hand, in addition to infrastructural connectivity, the Belt and Road Initiative Tax administration Cooperation Mechanism (BRITACOM) has been created, whose objective is to facilitate trade and cross-border investment, helping to resolve tax disputes between the countries that make up this Initiative. What is sought is to create a fiscal environment favorable to growth. Currently, 34 countries and regions are part of this mechanism.
It should be noted that in the last few years, the Chinese government has launched a series of measures to continually reduce the burden on taxpayers. This year, China plans to further reduce about $300 billion in taxes and fees, which seeks to improve the business environment and attract large investment.
How can Peru actively participate in the Belt and Road Initiative? It is necessary to emphasize that China is our main trading partner, we have a free trade agreement and a strategic partnership with China. Chinese investments flow mainly to the energy sector, but there are already proposals to attract more investment to the agricultural sector, in order to facilitate our exports to the Chinese market and a large number of consumers eager to buy higher quality products.
In this sense, the promotion of non-traditional exports to China should be a State policy in Peru, committing the business sector, ADEX and Chambers of Commerce, so that our exportable supply generates more resources and contributes to our economic development, taking into account the immensity of the Chinese market and the favorable conditions that exist within the framework of the Belt and Road Initiative.
The author is the President of Institute for Cooperation and Development of Peru.
Editor:Cherie
