Publicado · Uruguay

China–Peru Free Trade Agreement Upgrade Protocol Takes Effect: What It Means for Foreign Founders Operating in China

The upgraded China–Peru FTA protocol entered into force on November 1, expanding rules on origin, customs, IP, services, investment and more. Here is a practical overview for foreign founders running or registering a company in China.

China–Peru FTA Upgrade Enters Into Force

On November 1, the Protocol between the Government of the People's Republic of China and the Government of the Republic of Peru on Upgrading the Free Trade Agreement (the "Upgrade Protocol") officially took effect. For foreign founders building or running a company in China with cross-border trade or investment exposure to Latin America, this is a development worth noting, even though it does not change company registration rules or tax obligations in China itself.

The two sides launched negotiations on upgrading the free trade agreement in November 2018 and signed the Upgrade Protocol on November 14, 2024. The protocol revises and expands the original agreement rather than replacing it.

What the Upgrade Protocol Changes

Seven existing chapters refined

According to the source, the Upgrade Protocol improves seven chapters that already existed in the original free trade agreement:

• Rules of origin
• Customs procedures and trade facilitation
• Sanitary and phytosanitary measures
• Intellectual property
• Trade in services
• Temporary entry of business personnel
• Investment

For founders whose China-based company imports from or exports to Peru, the chapters on rules of origin and customs procedures are the most operationally relevant, since they shape how goods qualify for preferential treatment and how documentation is handled at the border. The intellectual property chapter matters for companies that rely on brands, technology or licensed content in either market.

Five new chapters added

The protocol also introduces five chapters that did not exist in the original agreement:

• Cooperation on standards and conformity assessment
• Competition policy
• E-commerce
• Global supply chains
• Environment and trade

The addition of standards and conformity assessment cooperation, together with the e-commerce and global supply chain chapters, reflects areas where cross-border business practices have evolved since the original agreement took effect. For foreign founders operating a China entity that sells online or participates in multi-country supply chains, these chapters signal where the two governments intend to focus cooperative work.

Future work on services and investment

The two sides also established future provisions regarding negotiations on negative lists for trade in services and investment. According to the source, the aim is to continue raising the level of openness in these areas. This is a forward-looking commitment rather than an immediate change in market access rules, so founders should treat it as a direction of travel rather than a current operating condition.

Trade Context: Why This Matters

The original China–Peru free trade agreement has been in force since 2010 and, according to the source, has played an important role in promoting bilateral economic and trade cooperation. Two-way trade rose from USD 6.4 billion in 2009 to USD 50.4 billion in 2025, an increase of nearly seven times.

Those figures describe the bilateral trade relationship as a whole, not the results of any single company or sector. Still, they illustrate why the protocol is being watched by businesses on both sides. The source states that, once in effect, the Upgrade Protocol will help further unlock opportunities for bilateral trade and investment cooperation, provide a better business environment for enterprises of both sides, and inject new vitality into economic and trade relations between the two countries.

Practical Points for Foreign Founders in China

1. This is not a company registration change

The Upgrade Protocol is a trade and investment agreement between two governments. It does not alter the procedures for establishing a wholly foreign-owned enterprise, a joint venture or a representative office in China, nor does it change corporate income tax, value-added tax or other filing obligations. Founders should keep registration and compliance planning separate from trade policy developments.

2. Review import and export documentation

If your China entity trades goods with Peru, the refined rules of origin and customs procedures chapters are the most directly relevant. Companies that rely on preferential tariff treatment should confirm that origin documentation and customs declarations align with the updated framework. The source does not specify transition periods or detailed operational rules, so businesses should follow subsequent guidance from Chinese customs authorities.

3. Watch standards and conformity assessment

The new chapter on standards and conformity assessment cooperation may become relevant for founders whose products require certification or testing before entering either market. The source does not describe specific commitments, so this should be monitored as implementing details emerge.

4. Consider services and temporary business travel

The revised chapters on trade in services and temporary entry of business personnel may affect how staff move between the two countries for commercial purposes. Founders with teams that travel between China and Peru should track how these provisions are applied in practice.

5. Treat the negative-list language as a signal

The future provisions on services and investment negative-list negotiations indicate an intention to deepen openness. For founders planning medium-term investment structures, this is useful context, but it is not a guarantee of specific market access outcomes.

What the Source Does Not Say

The source does not provide sector-specific tariff schedules, lists of covered products, implementation timelines beyond the November 1 effective date, or details on how disputes will be handled under the upgraded framework. Founders should not assume that any particular product, service or investment will automatically benefit. Instead, verify details with customs brokers, legal counsel and relevant authorities before adjusting business plans.

Bottom Line

The China–Peru FTA Upgrade Protocol took effect on November 1 after negotiations launched in November 2018 and signature on November 14, 2024. It refines seven existing chapters and adds five new ones, with future provisions on services and investment negative lists. For foreign founders operating a company in China, the practical impact will depend on their trade and investment exposure to Peru, and the most immediate attention should go to origin rules, customs procedures and standards cooperation.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Need help registering or operating a company in China? Foreign founders can contact ChinaMNC on WhatsApp or WeChat at +86 153 1898 8535 for practical support.