Illegal Mining, Record Exports, and China’s Growing Stake in Peru’s Gold Trade

According to Peru’s Ministry of Foreign Trade and Tourism, the country exported $947 million in gold to China between January and June 2025.

This figure is already higher than the $885 million exported to China during the whole of 2024, showing an acceleration in Chinese demand.

The United States and China remain locked in trade disputes, while investors worldwide turn to gold as a safe haven asset. Peru’s total gold exports in the first half of 2025 reached $8.57 billion, up 45.7 percent compared with the same period a year earlier.

Canada led as the largest buyer with $1.73 billion, followed by India with $1.59 billion, Switzerland with $1.12 billion, and then China. The country’s gold exports grew sharply in 2024 as well, reaching $13.58 billion, an increase of 56 percent compared to 2023.

Peru ranks among the world’s top ten gold producers. The Ministry of Energy and Mines reported 108 tonnes of formal gold output in 2024, a 7 percent rise compared to 2023.

Yet the Instituto Peruano de Economía estimates that illegal or informal mining could produce an additional 100 tonnes in 2025, worth over $12 billion.

This shadow sector complicates trade transparency, because nearly half of exported volumes last year had unclear origins. The government’s attempts to tighten oversight of small-scale producers have triggered protests.

Peru’s Gold at the Crossroads of China-U.S. Rivalry

In July 2025, authorities excluded around 50,500 miners from the REINFO registry, which grants temporary operation permits. Demonstrations followed, blocking transport routes and affecting copper shipments, underscoring how fragile the balance between formal and informal mining remains.

China’s growing appetite for Peruvian gold is not limited to bullion flows. It reflects a wider economic relationship. China is Peru’s largest overall trading partner and a central investor in mining and infrastructure.

The construction of the Chinese-operated Chancay port, expected to become a Pacific gateway for South America, has amplified concerns in Washington.

U.S. officials have voiced unease over China’s strategic footprint in the region, while Peru sees opportunities for expanded trade routes. The story is not simply about gold prices.

It is about how one of Latin America’s largest gold producers finds itself at the center of competition between two global powers. For Peru, gold exports bring crucial revenue but also expose the economy to risks tied to illegal production and foreign dependence.

For China, expanding purchases from Peru strengthens supply security in an uncertain market. For the United States, the shift raises questions about influence and control in South America.

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