The most exported categories of products that China exports to Chile during the

last year and the first semester of 2018

Chilean economist, researcher and President Ricardo Lagos (from 2000 to

2006) and Chinese President Hu Jintao (from 2003 to 2013) witnessed the signing

of China-Chile Free Trade Agreement in 2005 that entered into force in 2006. With

this agreement, Chile and China extended zero duty treatment phase by phase to

cover 97 percent of products exported.  Without this free trade agreement these

commercial activities wouldn't be possible nowadays. The Chinese products are

required by Chilean people because they have economic and accessible prices in

comparison with European products. According to the paper published on 2012

called “Journal of Current Chinese Affairs” written by Dr. Juan Carlos Gachúz,

professor of International Relations at the Benemérita Universidad Autónoma de

Puebla (BUAP), “China’s foreign policy has been characterized in the last decade by a
heightened interest in reaching out to Latin America, particularly to countries rich in natural

resources and with potential markets for Chinese exports, and Chile is one of these countries” .

The first most exported categories of products that China exports to Chile

during the last year and the first semester of 2018 are electronic equipment,

vehicles and clothing. The website Trading Economics published that “Chile

imports from China was US$15.55 Billion during 2017, according to the United

Nations COMTRADE database on international trade.” The first most exported

categories of products that China exports to Chile in the last six months is

electronic equipment. According to Mary Amity; Assistant Vice President at the

Federal Reserve Bank of New York, and Caroline Freund; director of trade,

competition and investment climate at the World Bank “there has been a significant

decline in the share of agriculture and soft manufactures, such as textiles and

apparel, with growing shares in hard manufactures, such as consumer electronics,

appliances, and computers.” The first example of electronic equipment category is

cell phones. The American Statista website establish that in April, China produced

143.7 cell phones to export and this increase every month. The second example of

electronic equipment category is cameras. This product has become one of the

most required by the Chilean public. According to the use of the device, whether is

basic or professional, the prices will vary from 200,000 pesos to more than 1

million. The third example of electronic equipment category is electronic appliance.

“Based on estimates from the Central Intelligence Agency’s World Factbook,

China’s exported goods and services represent 19.6% of total Chinese economic

output or Gross Domestic Product” (Workman, 2018). In conclusion, the most

exported product will be always electronic equipment due to the profits that this

activity left to the country that export. In the same way, one of the preference that

Chilean people have in mind when it comes to spend money, they decide to spend

in electronic devices.
 The second most exported categories of products that China exports to Chile

during the last year and the first semester of 2018 are vehicles. According to the

Trading Economics website, an online platform that provides historical data,

economic forecasts, news, and trading recommendations, published that the

percentage of vehicles that China exports to Chile correspond to 6.2% of the total

products. Another important fact is that in Chile are around 21 brands of cars from

China. Chilean people prefer to buy exported cars that arise from China when it

comes to motor vehicles because the models convince them both by design and

luxury, in addition to being more accessible than other car brands, being the

primary reason the price of a Chinese car. The first example of vehicles category

are vehicles for transporting persons. The value of this to Chile was $355 USD

millions during the 2017, according to the Trading Economics website. The second

example is bicycles and other cycles. In Chile Chinese bicycles brands are

popular, not for its quality, but its economic prices. Spare parts and accessories of

bicycles are most required than bicycles itself. The third example are vehicles for

transport of goods. JAC motors is one of the most Chinese sell brand in Chile for

transport of goods. In conclusion, Chilean people are preferring Chinese cars more

each day. According to the official JAC Motors website “In those years, with the

development of Southeast Asia, South America and other 30 countries and regions

around the world, the exports volume of JAC heavy-duty trucks have maintained

above 3000 units per year”.

 The third most exported categories of products that China exports to Chile

during the last year and the first semester of 2018 is clothing. Cloth plays an

important role in the appearance of Chilean people. On one side, it gives them a

formal appearance, for example in a job interview, a beautiful Chinese blazer or

jacket is enough to look formal. On the other side, a relaxed Chinese outfit consist

on a colored or basic shirts, blue jeans and sneakers. According to the Trading

Economics website the percentage of products corresponding to articles of

apparel, not knit or crocheted that China exports to Chile is 7.7%. Another fact that

the American website published is that “Chile Imports from China of Articles of

apparel, not knit or crocheted was US$1.19 Billion during 2017, according to the

United Nations COMTRADE database on international trade.” Chilean people

every day care more about their look, therefore clothing is in this category. The first

example of clothing category are suits, jackets, blazers and dresses. Chile Imports

from China of suits, jackets, blazers and dresses was US$271.29 Million during

2017. The second example of clothing category are women's or girls' overcoats

and carcoats. Chile Imports from China of women's or girls' overcoats and carcoats

was US$146.71 million during 2017. The third example of clothing category are

blouses and shirts. Chile Imports from China of blouses and shirts was US$83.71

million during 2017. In conclusion, considering the numbers published by the

Trading Economics website, exporting clothes to Chile seems to be a profitable

business, both for the Chinese and for the Chileans.

 In brief, the products that china exported to Chile have an important effect in

Chile’s economy, since October 2006 Chile and China have a free trade

agreement, they have an increase in the exportations of products between these

countries. The main products that China exports to Chile are gadgets, motor cars

and clothing. According to the “The Observatory of Economic Complexity” by

Alexander Simoes, “China is the largest export economy in the world and the 33rd

most complex economy according to the Economic Complexity Index (ECI). In

2016, China exported $2.27T and imported $1.23T, resulting in a positive trade

balance of $1.04T. In 2016 the GDP of China was $11.2T and its GDP per capita

was $15.5k”. In Chile there are several shopping centers that are mainly focused

on products from China. For example, electronic products such as cellphones,

clothing for men and women, even for children, but for the moment there is no

branch office within these shopping centers linked to the sale of Chinese vehicles.
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