A Study On Bilateral Economic And Trade Relations Between China And Chile

During the 46 years since the establishment of diplomatic relations between China and Chile,China and Chile have infused new vigor to capacity cooperation between the two countries through the method of building free trade zones.The signing of China-Chile Free Trade Agreement has also initiated the trade and exchange liberalization between China and Latin America.The objective of the study on the problems in the bilateral economic and trade relations between China and Chile,is to propose constructive opinions and suggestions from aspects including trade,investment,cultural and technological exchange,and inter-governmental cooperation,according to the guidance of strategic ideas such as upgrade free trade zone cooperation negotiation intensively put forward by leaders of the two states recently,in order to help more Chinese enterprises enter Chile to invest and expand the Chilean market,then to fully release the bonus of free trade between the two countries and promote the successful upgrade of the free trade agreement.With regard to the main study contents,the author,supported by the theoretical system of international trade and direct investment,using study methods including literature reference and practical trade and investment data analysis,firstly introduces the basic national condition of Chile and its outstanding economic and political status in South America.It is found through the study that Chile is the inevitable bridge for China to enter the trade and economic market in South America and should be regarded as the key strategic cooperation target for opening the free trade market in Latin America.The author uses the free trade agreement,service trade agreement and complementary agreements on investment signed by the two countries as the basic political conditions for the development of bilateral trade and economic relations,then makes explanations and illustrations,thus leading to the characteristics of the current development of bilateral economic and trade cooperation as well as existing problems on such a basis:(1)The trade volume between China and Chile is steadily increasing with highly complementary exported products,but the trade structure isnot balanced;(2)The scale of direct investment by the two countries is relatively small.Mining investment is still dominant while other industries are in urgent need of development.Then,in order to solve problems in the economic and trade cooperation between the two countries and further enhance their bilateral economic and trade cooperation,several policy suggestions are concluded:(1)To continue to expand bilateral trade volume,optimize the trade commodity structure between the two countries and enhance trade convenience.At the same time,financial cooperation in the field of service trade should be deepened,which can lay the foundation and pave the way for future bilateral economic and trade development;(2)To enhance industrial and investment cooperation.While expanding commodity trade,China and Chile should deepen their cooperation in investment.A brief discussion on how to expand investment cooperation in several major sectors such as mining,energy sources,telecommunication and agriculture is made and suggestions on investment risk precaution are given;(3)The two national governments should promote social and cultural exchange,enhance bilateral policy coordination based on equality and mutual benefit,increase inter-governmental communication and exchange,and drive the economic and trade cooperation between China and Chile towards higher level and broader areas.