Shougang Hierro Peru (SHP) was China’s first major investment project in Latin America. It was a strategic move for Shougang to expand overseas business in the 1990s, when China was endeavoring to speed up its economic reform. While the SHP had more than satisfactory performance in the beginning, it later ran into many difficulties due to the chain effects of the mother company, which changed its strategy from expansion to contraction, the deteriorating relationship between the company and labor union, and the failure to meet investment commitments. After the year of 2005, the SHP experienced a period of revival as a result of the unexpected “commodities super cycle” driven by China’s surging demand of natural resources. Nevertheless, the old and new problems—labor disputes, community relations, implementation of corporate social responsibility as well as the recent sharp drop of iron ore price—are still constant challenges today.