China: Let’s get to work on this marriage

Chile and China have had a steady relationship for the past 37 years. It has been characterized as a truly well-rounded one, at that. In very simple terms, the Chile-China ties can be likened to a love affair between two people, which begin with many gestures of friendship and trust, and then deepen as the two become more knowledgeable and trusting of one another. In the end, everything leads to the establishment of more formal ties, in writing; with responsibilities to share and accomplishments to celebrate.

Through a series of “firsts”, Chile has managed to lay the groundwork for a solid relationship with China. Among other landmark events, the Chinese often recall Chile as having been the first Latin American country to recognize the Beijing government as the legitimate representative of the interests of the Chinese people. They remember Chile as the first country in the Americas to complete the process to allow access to China the World Trade Organization. Chile was the first country in the world, to reach a bilateral free trade agreement with China. 

China has become Asia’s leader in middle-income consumers. It has added more than 230 million people to this stratum in only the last 15 years. By 2020, the number should exceed 700 million potential consumers of products such as fresh fruit, wine, dairy products and meat. These are all products that Chile is seeking to introduce (now or in the near future), into this dynamic market, which consists of more than just Beijing, Shanghai or Guangzhou. The future of Chile in China extends beyond these three mega-cities.

On April 11, 2008, President Michelle Bachelet will attend a ceremony on Hainan Island with her Chinese counterpart, Hu Jintao. The two leaders will sign an agreement that is unprecedented in Chinese trade history with Latin America, the Supplementary Agreement on Trade in Services of the Free Trade Agreement. As stated, it is the first bilateral agreement of this kind. But we should also note that it is a powerful new tool for Chile’s private sector in its quest for business opportunities in an increasingly globalized, interdependent and competitive marketplace. The agreement also clearly lays the groundwork for a new phase of business between the two countries, whereas it covers communication services, construction, distribution, education, environment, tourism and recreation, among others.

Thus, we can state with certainty that the relationship between Chile and China now has a new way in which business people in both countries can make a qualitative and quantitative leap. The Chilean delegation will participate in the analysis and discussion set to take place during the 3^rd Binational Business Council Session. The Council will meet April 14 in Beijing. The Chilean team will need to highlight areas in need of strengthening, and perhaps periodic evaluation. They should work at top speed on a relationship involving two nations who are fully aware of the opportunities the future holds if the supplementary treaty is further invigorated via entrepreneurship and innovation in the business and public sectors in these two countries on the Pacific.