In 2009, bilateral trade amounted to $17.4 billion. Chilean exports amounted to 23% of Chile`s total exports.  Chile`s main imports from China are cars, electrical machinery and textiles. The updated agreement will support this demand, as tariff exemptions apply to vehicle imports. Chile also exports services such as travel and tourism. It has implemented a visa waiver policy with China for citizens who had a U.S. or Canadian visa in effect. Chile was the first Latin American country to establish diplomatic relations with China when the two nations signed a free trade agreement. In 2015, the two countries signed an agreement to avoid double taxation. In 2018, trade between the two countries amounted to $42.8 billion, an increase of 24% over the previous year and represents almost one third of Chile`s total foreign trade. In 2019, the agreement was upgraded to further facilitate trade between businesses. Here are some of the key changes to the free trade agreement.
Since, in most cases, Chile is able to export freely to China, there are different market opportunities for Chilean companies. These include opportunities in the food industry, including food producers, as China is unable to meet the demands of its own population, with a population of 1.5 billion. In recent years, China has imported more food products from Latin America, including fruits and vegetables. However, these challenges can be met. Chile`s free trade agreement with China offers a great export opportunity. It has learned to diversify its trading partners while covering its own import needs. Several Latin American companies have successfully entered the Chinese market. In 2016, bilateral trade between Chile and China amounted to $31.36 billion compared to only $7 billion in 2005. This shows how effective the free trade agreement has been in promoting trade between the two countries. Chile was the first Latin American country to establish diplomatic relations with the People`s Republic of China until 15 December 1970. However, relations stagnated for decades, until the two countries signed a free trade agreement in 2005. It was China`s first free trade agreement with a Latin American country.