LIMA (Reuters) – Peru’s president met with Chinese electric vehicle maker BYD (SZ:) on Wednesday, inviting executives to set up shop on the Andean country’s Pacific coast where another Chinese firm is building a major port to facilitate trade between the two countries.
President Dina Boluarte told executives that if BYD builds a car assembly plant in Peru, it would benefit from the Chancay port being built by Cosco Shipping Ports, which is due to open in November, according to a government statement.
The president noted that the government would build an industrial park in either Chancay or Arequipa, about 620 miles (1,000 km) south of the Pacific coast.
“Any of these places could create an auto assembly industry,” Boluarte said.
In recent years, China has become the largest investor in Peru and the largest buyer of the national currency.
“Instead of bringing copper and lithium from Peru, they should come to Peru to create their own assembly industry,” she said, adding that the government would propose zero tariffs to encourage more local investment.
Peru is also considering an agreement with China to replace the country’s public transport with electric models in the next three to four years, according to the statement.