Editor's note:on 1st September 2020, Prof. Taotao Chen published an article on Chile's Diario Financiero, with the title of Seven positive factors for promising China-Chile relationshipin post Covid-19.
Seven positive factors for promising China-Chile relationship in post Covid-19
Prof.Taotao CHEN,
Director of Tsinghua University Latin America Center
It has been noticed that China-Chile relationship has been developed very well in recent years, with rapid growth of bilateral trade and more participation of Chinese companies investing in Chile. Even though it had been interrupted by the outbreak of Covid-19 for a while, we could expect an improvement soon with the relatively strong economic recovery in China. Based on the existing evidence, there are at least seven positive factors that would support the continuous development of the bilateral economic relationship between our two countries after the pandemic.
First, it has been well recognized that there are clear complementary economic factors between China and Chile, as China is more manufacture-oriented economy, while Chile is more resource-oriented economy. These complementary characteristics have been not only stimulating the bilateral trade, but also encouraging further investments as well.
Second, more Chinese market has been and will be explored for Chilean product. On one hand, Chilean products has gained good reputation in Chinese market, such as cherry and red wine; on the other hand, China committed to continuously open market to the world, while the smart Chilean business people also accumulated capabilities to find more niche market inside China for their high-quality products.
Third, more qualified Chinese products with price efficiency will also get into Chilean market. It is not only because Chile is anacknowledgedopen market and China has fantastic manufacture capacity, it is also because Chinese producers have already collaborated with their Chilean local partners with rich market experience and mature marketing skills.
Fourth, more Chinese companies and financial institutions are investing and will continuously invest in Chile. With experience of previous years, Chile has been recognized as a country with sound business environment, with fair market roles, efficient government agencies, and qualified local partners. Equipped with high technology, engineering and management skill, Chinese companies and financial institutions now have more confidence in Chilean market.
Fifth , more technology oriented new areas have been explored for future collaboration, such as digital oriented business and clean energy-associated areas. Those are the areas that Chile has obvious demand and China has fantastic experience inside China, as well as in overseas markets. More than that, now strong Chinese companies such as Huawei, Dahua and Didi are already in Chile, who are able and ready to work with their local partners in these areas.
Sixth, more broadly, China and Chile formed comprehensive strategic partnership on country level in 2016, with agreement on the 2030 Agenda for Sustainable Development, supporting multilateralism and inclusive development. And in 2018, Chile signed MOU with China on Belt and Road initiative. All these agreements have confirmed the common opinions for both countries, which has laid down a concrete foundation for further cooperation.
Last but not least, through all the activities and connections, people from China and Chile have got more chances to know each other, which helps to enhance the mutual understanding and trust between our two nations.
Now we are living in a fast-changing world, the up-scaled conflict between US and China before and during the pandemic is of the biggest concern to the whole world. Even though the aspects and extent of the impact of it should be carefully evaluated, we still have enough confidence in further developing the promising future of our two countries in the age of post Covid-19.
See the article through the Diario Financiero de Chile:
https://www.df.cl/noticias/opinion/columnistas/df-conexion-a-china-siete-factores-para-una-relacion-prometedora-entre/2020-08-31/185905.html
