Chile Shares the Chinese Dream
Meanwhile, more Chilean businessmen are coming to China. Some have set up joint-venture vineyards here, as they are not allowed by Chinese law to purchase land. One brand from such cooperation is 1421.
Others entered the manufacturing sector, for instance, ME Elecmetal. They established operations in China producing wear-resistant parts for crushing and grinding equipment used in mining. Since mining equipment components needed in Chile are made in China, why shouldn’t we open factories in China producing them in the first place? This was the logic.
My estimate puts 2012 Chilean investment in China at about US $300 million – which, while not as impressive as Chinese investment in Chile, has still been maintaining a steady upward trend. At the current momentum, Chinese investment in Chile may hit US $3 billion in 2013, auguring well for the coming years.
China Today: How has the free trade agreement impacted on bilateral trade between China and Chile?
Mr. Montes: Chile is lucky to have a sustained surplus in its trade with China. In 2012 our exports to China stood at US $18.9 billion, compared with China’s US $13.5 billion in exports to Chile. This put our surplus at a comfortable US $5 billion, which should pick up further after food exports to China increase. It is not easy to obtain entry permits for our exports. Since taking office I have been personally involved in the issue, and this has paid off. China and Chile have reached more agreements concerning agricultural products over the past three years than those in the previous 15 years. Before the signing of the free trade pact, food was only 1 to 2 percent of Chile’s exports to China, and now the share is about 12 percent.
Chile’s food exports, comprising fruits, wine, salmon, pork, and more, were valued at US $2.3 billion in 2012. With the spike in pork sales, our food exports are expected to reach US $2.8-3 billion in 2013, accounting for 18 percent of total export to China. And Chile’s surplus will be absolute.
China Today: Has Chile been successful in diversifying its exports?
Mr. Montes: Prior to the free trade agreement, 98 percent of our exports to China were metals such as copper, iron, molybdenum, silver, and gold. The rest were cellulose and fish meal. But last year, China’s imports from Chile included 510 items outside of these three categories.
Food is a key export. Chile is a big food exporter, and there’s a huge demand in China. We have been cooperating well.
When I first came to China in 1992, many people here had no idea about (grape) wines. Now Chile is exporting US $160 million worth of wine a year. Chinese people once thought our fruits were expensive, but now they buy more than US $400 million worth of fruit every year. Chile is also the world’s biggest salmon producer and exporter.
When I told officials of China’s Ministry of Health that Chile is the world’s top blueberry exporter, they responded with disbelief, saying it had to be the U.S. Yes, the U.S. has a bigger output, but it is mostly for domestic consumption. Chile is now the only country exporting fresh blueberries to China. In 2012, we also exported US $18 million worth of cherries to China. A good portion of the fresh cherries on the Chinese market during the Spring Festival were from Chile, as we are the only country who can supply fresh fruits during that time of the year.
China Today: Are there any other fields where the free trade agreement has widened opportunities for furthering bilateral trade ties?
Mr. Montes: Yes, there are plenty. The agreement boosts both two-way trade and investment. For the latter there is vast room for future growth for both parties. But there is one more sector that some overlook – trade is not only about commodities, but also services of all types. When the world was less developed, trade in goods dominated. As economies grow, brainpower gains prominence, and service trade takes the lead. Trade, particularly in services, between China and Chile has bright prospects.
China Today: Your Excellency, since you made your first trip to China in the 1990s, do you think you have realized your Chinese Dream?
Mr. Montes: The concept of the Chinese Dream was raised by President Xi Jinping. My understanding is that it represents a fusion of the aspirations of people from all walks of life. This would include the fisherman I spoke to in Guilin last weekend, the sheep-herder I met in Urumqi, a Shandong farmer who impressed me with his orchards and fruit wine brewery, as well as factory workers in Shanghai producing automobiles and mobile phones. Each one cherishes a dream. What they all have in common is the desire for a rising and more advanced country, and better lives for their descendants.
The Chinese Dream is a global dream. China is now the world’s second largest economy and on the way to the No. 1 slot. A better-off China is in the interest of Chile. If China shares its dream with other countries, the world will become a better place.
