This article reviews dependency postulates and examines whether they are applicable to explain the political economy of China’s contemporary relations with Peru. It argues that the dichotomy between Peru as a commodity-providing periphery and China as a core manufacturing centre is insufficient to explain the ways in which power is embedded in the international economic system, and particularly inadequate to identify winners and losers in the international division of labour. Thereby, in line with some recent international political economy discussions of power, the article proposes that China should not be understood as a self-contained economic entity, but as a hub where natural resources are mobilized for transnational production. Furthermore, contending that a focus on nation-states fails to capture the complexity of (under)-development dynamics, it suggests that notions of internal colonialism, flexible sovereignties and postcolonial analyses of representation provide fresher perspectives from which to understand the distribution of power along the political economy of Sino-Peruvian relations.