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

The upgraded China-Peru Free Trade Agreement protocol came into force on November 1, 2026, introducing new rules on standards, e-commerce, supply chains, and investment. Here’s a practical overview for foreign founders operating or registering a company in China.

China-Peru FTA Upgrade Protocol Now in Force

On November 1, 2026, the Protocol to Upgrade the China-Peru Free Trade Agreement officially took effect, according to an announcement by the Department of International Trade and Economic Affairs of China’s Ministry of Commerce (MOFCOM). For foreign founders building businesses in China, the upgraded agreement signals a more predictable and transparent trade and investment environment 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 entered into force in March 2010—the first comprehensive FTA China signed 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. Upgrade negotiations were launched in November 2018 and substantially concluded on June 28, 2024, during a meeting between President Xi Jinping and then-President Dina Boluarte in Beijing. The protocol was formally signed on November 14, 2024, and both sides have now completed their domestic ratification procedures, allowing it to take effect on November 1, 2026.

Key Highlights of the Upgrade Protocol

MOFCOM describes the protocol as a concrete step by China to uphold the rules-based multilateral trading system and to deepen openness through free trade negotiations. For businesses, the protocol aims to create a more favorable business environment and expand trade and investment opportunities.

1. Modernized Rules and Commitments

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

Notably, the global supply chains chapter encourages multimodal transport and promotes logistics corridors and infrastructure development—an innovation under the FTA that underscores both countries’ commitment to stable supply chains. The standards and conformity assessment cooperation chapter establishes a dedicated cooperation mechanism and lists proposed areas for cooperation, creating a platform for mutual recognition of standards and reducing trade costs for businesses.

2. Improved Trade and Investment Environment

Trade in goods: The protocol introduces electronic data exchange provisions and completes the transposition of product-specific rules of origin. It sets detailed rules for customs declaration-related requests and responses, information exchange, clearance of goods, clearance of express consignments, and clearance of perishable goods. It also raises transparency requirements for SPS-related laws and regulations and establishes a consultation mechanism to resolve technical issues promptly.

Services and investment: Four new annexes cover professional services, transport services, cultural and audiovisual services cooperation, and telecommunications services, enhancing regulatory cooperation. The protocol includes provisions for expedited application procedures for entry of business personnel, improving visa processing efficiency. It also significantly improves the investor-state dispute settlement mechanism and refines provisions on most-favored-nation treatment and expropriation, providing stronger protection for mutual investment.

3. Future-Oriented Openness

The two sides agreed to launch negotiations on negative lists for services trade and investment within two years after the protocol enters into force, aiming to further liberalize both areas. They also committed to reviewing the competition chapter every two years to assess the possibility of higher commitments.

What This Means for Foreign Founders in China

For foreign entrepreneurs registering or operating a company in China, the upgraded protocol offers several practical benefits:

• Clearer rules and reduced costs: The standards cooperation mechanism and electronic data exchange provisions can lower compliance burdens for importing and exporting goods between China and Peru.
• Easier movement of personnel: Expedited visa procedures for business personnel may facilitate short-term assignments and business travel.
• Stronger investment protection: The improved dispute settlement mechanism and refined investment provisions provide greater legal certainty for investors.
• Enhanced supply chain connectivity: The focus on multimodal transport and logistics infrastructure can improve efficiency for companies sourcing from or selling to Peru.

While the protocol is bilateral, it reflects China’s broader efforts to improve its trade and investment regime. Foreign founders should monitor how these commitments are implemented in practice, especially if their business involves China-Peru trade or investment flows.

Implementation and Resources

China has completed its domestic preparations for implementation. The full text of the protocol is available on the China Free Trade Area Service Network (http://fta.mofcom.gov.cn), where businesses and individuals can consult the details and seek clarification. Additionally, the General Administration of Customs has published the revised Measures for the Administration of Origin of Imported and Exported Goods under the China-Peru FTA.

MOFCOM will work with relevant departments and local governments to strengthen outreach and services for businesses, monitor the implementation, and maintain coordination with Peru through FTA implementation mechanisms to ensure high-quality implementation.

Next Steps for Foreign Founders

If you are considering setting up a company in China or already operate one, now is a good time to review how the upgraded protocol might affect your supply chain, investment structure, or personnel mobility. For personalized guidance on company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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