Chile Plans New Trade Phase with China Visit

President Gabriel Boric of Chile plans to visit China to negotiate new deals aimed at diversifying Chile’s economy.

“We aim for a fresh start with beneficial investments,” said Deputy Secretary Claudia Sanhueza before the trip.

Both nations plan to sign about a dozen agreements. These will cover sectors like technology, education, and innovation.

Last year, trade between the two nations reached $65 billion. Copper exports made up most of this trade.

Chile wants to revive its economy through value-added industries. They primarily focus on copper, lithium, and fruits.

This is a shift from Chile’s traditional export of raw materials. Since 2012, its economic productivity has declined.

The U.S. and China are Chile’s key trade partners. Yet, their relationship is tense. Sanhueza states Chile maintains neutrality.

“We strive for political freedom,” she added.

Boric often speaks on human rights. When asked, he confirmed he would maintain this stance in China.

His trip will involve high-level business talks and visits to companies. These will happen in several Chinese cities.

Exploring Other Markets

Sanhueza, an Economics Ph.D., will also visit Japan and India. “Chile seeks to explore other markets,” she said.

China, meanwhile, aims to recover its economy. The country is grappling with a real estate crisis and sagging consumer trust.

“Short-term concerns are there, but the future looks promising,” said Sanhueza. In contrast, Chile’s economic outlook is grim.

Factors like high debt and low demand contribute to this. Recent data indicates a likely recession.

The government has also revised its 2023 growth forecast to zero.

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