Peru's trade and investment relationship with China is overwhelmingly concentrated in the mining sector. Peru is well- positioned to oversee a positive mining- based relationship with China, having recently taken several important steps to increase transparency and accountability in this sector. Peru has been a regional leader in this aspect – for example, by both joining the Extraction Industry Transparency Initiative (EITI) and becoming the first Latin American government to incorporate ILO Resolution 169 into domestic legislation. In 2014, Chinese mining firms demonstrated their own commitment to these standards by joining the EITI program in Peru.

Overall, there is no one Chinese way of doing business in Peru. Chinese mining firms do not appear to be either the best or worst in the country, but their experiences have been emblematic of the challenges that all foreign investors face. In the instances we have found where Chinese firms have failed to meet environmental and social responsibility standards, responsibility must be shared between missteps on the part of firms as well as the reluctance or inability on the part of the government to enforce these standards. However, there are important, positive signs that Chinese investors and Peruvian regulators are willing to work together to improve this record. For example, after the recent acid water spill at the Chinese- run Toromocho mine, regulators stepped in immediately and shut down production until the firm addressed the problem, which took only a few days. Furthermore, after the incident the Association of Chinese Companies in Peru asked the Ministry of the Environment (MINAM) for training on local environmental regulations. That type of training for foreign investors could provide yet another opportunity for Peru to lead the region in its proactive framework for mining.

Two other important recommendations emerge from our findings. First, the EITI program could be substantially enhanced by including local governments. EITI reporting is a powerful tool for citizen empowerment, but it is incomplete without the inclusion of local government, which receives 50 percent of mining tax revenue. Second, while mining firms must meet higher labor standards than other firms, the sector has a history of circumventing these protections through the use of subcontractor labor, contributing to conflict between the firms, labor and the surrounding communities.