Santiago hopes to broaden bilateral ties with China

Global Business

Santiago hopes to broaden bilateral ties with China

China is also Chile’s biggest trading partner which is a relationship stemming from its free trade agreement dating back to 2005.

Back then, Chile was the first Latin American nation to sign such a deal with China. Santiago now hopes this visit from President Xi will take the two countries’ bilateral relationship to the next level.

CCTV’s Paulo Cabral reports from Santiago.

Santiago hopes to broaden bilateral ties with China

Santiago hopes to broaden bilateral ties with China

China is also Chile’s biggest trading partner which is a relationship stemming from its free trade agreement dating back to 2005. Back then, Chile was the first Latin American nation to sign such a deal with China. Santiago now hopes this visit from President Xi will take the two countries’ bilateral relationship to the next level. CCTV’s Paulo Cabral reports from Santiago.

Most shops of China Mall in Chile’s capital Santiago are Chinese owned and operated and most of the products come from China. As in many parts of the world, Chile’s marketplace is dominated by Chinese manufacturing.

Trade between Chile and China boomed after 2006 when the two countries’ free-trade agreement – came into force.

Since then, Chilean imports from China have more than tripled from $4.4 billion in 2006 to almost $15 billion last year. And the country’s exports to China grew at a similar pace: from $5.3 billion in 2006 to $16.7 billion in 2015. China is now the top destination of all Chilean exports and also its main source of imports.

Chile imports mainly manufactured goods from China and exports raw materials and agricultural products to the Chinese. While this remains a win-win scenario there’s also an effort in Chile to increase their international sales of other products and services abroad.

The head of the Chile’s exports promotion agency said the FTA with China has already helped this diversification begin.

The Chilean government is also keen on attracting more Chinese investment to their country as a next step in the two nations’ evolving bilateral relationship.