Trade between Chile and China grew 18% in the first months of 2022

RIO DE JANEIRO, BRAZIL – Chile’s trade exchange with China increased by 18% in the January-February period when compared to the same period in 2021, with imports showing a significant rise of 58.7% by totaling purchases for US$5.2 billion, while exports had a more moderate increase of 4.3% totaling US$6.7 billion.

These data are in the report prepared by the Studies Department of the National Customs Service, including the ranking of the main products bought and sold to China, the main Chilean trading partner with a 32.9% share in imports and 41.8% in exports.

“This phenomenon is related to the reactivation that the country has been experiencing steadily throughout 2021 and in the first months of this year,” said the national director of Customs, José Ignacio Palma.

“As can be seen in the figures, trade with China is very important for the Chilean economy. For this reason, much of our inspection, control, and management work is related to exports and imports related to this country, both for border security and legal trade issues, as well as to deliver better tools to operators, as is the case of the 2021 implementation of the mutual recognition agreement of our Authorized Economic Operator (AEO) programs”, he added.

Within the purchases made by Chilean companies to Chinese producers, the list is headed by smartphones and other cell phones (cell phones) and those of other wireless networks, with acquisitions for US$251.6 million and a 20.9% increase compared to the first two months of 2021.

Next are passenger cars, with engines between 1,000 and 1,500 cm3, which reached purchases for US$169.2 million and an increase of 18.1%. In third place are automatic machines for data treatment or processing, portables, laptops, and similar types, totaling US$160.8 million and an increase of 38.2%.

Concerning the variations observed in the main imported products, the most significant were the acquisitions of other wind power generating sets (5,252.9%) and flat-rolled products of iron or non-alloy steel, clad with aluminum and zinc alloys (147.3%).

EXPORTS OF CHERRIES AND LITHIUM ON THE RISE

Exports from Chile to China were led by copper ores and concentrates, with US$2.9 billion, although they decreased 7% compared to last year.

In second place were other fresh sweet cherries, with sales of US$1.3 billion and an increase of 21.2%.

Finally, refined copper cathodes stood out with US$1.1 billion and a 5.2% increase.

Regarding the variations observed in the main exported products, shipments of other lithium carbonates stood out, increasing by 932.8% with US$166.4 million, while iron ores and concentrates fell by 65.6% to US$85.3 million.

U.S. AND EUROPE

Economist Josefina Henríquez, a researcher at the Latin American Center for Economic and Social Policies (Clapes) of the Catholic University, highlighted the evolution of trade with the United States and Europe.

The North American country “is positioned as the second supplier of products, which has happened for some time. Imports have increased by nearly 30% in the same period. In terms of cargo, it is positioned as the country of origin with the highest participation concerning the total merchandise acquired by Chile,” said the expert.

“In the case of Europe, imports have represented an increase of 22%, with imports from Spain and Germany standing out,” she added.

POST-PANDEMIC ECONOMIC RECOVERY

For Óscar Landerretche, economist and academic at the Universidad de Chile, there are still “many things slowing down post-pandemic economic recovery. That affects our exports and, of course, our economy.”

“In addition to that, there are effects that have to do with the Chilean exchange rate, which is still devalued, basically because Chile has a risk perception due to the political context. The exchange rate should be about CLP 100 lower. It helps our exporters, but it hinders our imports because it makes them more expensive. It slows down imports’ recovery, ” warned the former president of Codelco.

Meanwhile, businessman Roberto Fantuzzi, president of the Association of Exporters and Manufacturers (Asexma), pointed out another factor complicating the recovery: global trade has also been put in check by the shortage and high cost of empty containers during the last year of the pandemic.

“International trade, in general, has had variations due to the high cost of containers. A container that was worth US$1,000 was later worth US$10,000. And if the product is expensive, the impact on freight is lower, but if the product is cheap, it affects exports a lot,” he said.