
Dependency with Chinese Characteristics? A case study of Chinese engagement in Chile
Author(s) -
Daniel Liebetreu
Publication year - 2021
Publication title -
cuadernos de política exterior argentina/cuadernos de política exterior argentina
Language(s) - English
Resource type - Journals
eISSN - 1852-7213
pISSN - 0326-7806
DOI - 10.35305/cc.vi133.111
Subject(s) - dependency (uml) , china , order (exchange) , business , investment (military) , production (economics) , value (mathematics) , international trade , international economics , economics , political science , finance , engineering , macroeconomics , systems engineering , machine learning , computer science , politics , law
This article demonstrates that while Chile has generally been successful in capturing the benefits of China’s economic rise, the country is also developing a market dependency on China in certain export sectors, namely copper and cherries. In order for Chile to break its increasing dependency on China, it must diversify its export markets and foster a more balanced conversation about Chinese engagement. In addition, Chile must invest more on value-added production prior to export. Chinese trade and investment are critical to a quick economic recovery from the pandemic; however, policies must be implemented now to ensure Chile maximizes the potential benefits and minimizes the inherent risks in the long term.