Zofalitsidwa · Nyanja (Chichewa)

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

The upgraded China-Peru free trade agreement protocol entered into force on November 1, 2026, enhancing rules and adding new chapters. Here’s a practical overview for foreign founders operating or registering a company in China.

China-Peru FTA Upgrade Protocol Enters into Force

On November 1, 2026, 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 (hereinafter the “Upgrade Protocol”) officially took effect. For foreign founders with business interests in China or Peru, this development may affect trade and investment operations.

Background and Timeline

China and Peru launched negotiations to upgrade their free trade agreement in November 2018 and signed the Upgrade Protocol on November 14, 2024. The protocol revises the original FTA and introduces new disciplines.

Key Changes in the Upgrade Protocol

The Upgrade Protocol improves seven existing chapters of the original FTA and adds five new chapters. The enhanced chapters cover:

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

The five new chapters address:

• Standards and conformity assessment cooperation
• Competition policy
• Electronic commerce
• Global supply chains
• Environment and trade

Additionally, the two sides established future work provisions for negotiations on negative lists for trade in services and investment, aiming to further liberalize these areas.

Trade Growth Under the Original FTA

Since the original China-Peru FTA came into effect in 2010, it has played a significant role in promoting bilateral economic and trade cooperation. Trade between the two countries rose from USD 6.4 billion in 2009 to USD 50.4 billion in 2025, an increase of nearly seven times. The entry into force of the Upgrade Protocol is expected to help further explore bilateral trade and investment opportunities, provide a better business environment for enterprises of both sides, and inject new vitality into economic and trade relations.

Implications for Foreign Founders

For foreign founders registering or operating a company in China, the upgraded agreement may bring practical benefits. Enhanced customs procedures and trade facilitation could streamline import-export processes. Improved rules of origin may make it easier to qualify for preferential tariffs. Stronger intellectual property provisions could offer better protection for brands and technologies. The new electronic commerce chapter may support digital trade. Moreover, the temporary entry of business persons chapter might facilitate the movement of key personnel between China and Peru. The investment chapter and future negative list negotiations could lead to more transparent and liberal investment regimes.

Founders involved in supply chains spanning China and Peru should note the new global supply chains chapter, which may encourage cooperation and resilience. The environment and trade chapter may introduce sustainability considerations into trade practices.

Practical Steps

To leverage these changes, foreign founders should:

• Review their import/export strategies to take advantage of improved customs and rules of origin.
• Assess intellectual property portfolios in light of the upgraded IP chapter.
• Consider how the temporary entry provisions could ease the movement of managers and specialists.
• Stay informed about future negotiations on services and investment negative lists.
• Ensure compliance with new standards and competition policies.

While the protocol is between China and Peru, it may also affect companies from other countries that operate in both markets or use them as part of their supply chains.

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

Need Assistance?

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.