Chile-China Relationship Beijing 2011

8/6/2019 Chile-China Relationship Beijing 2011

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Chile: business environmentand investment opportunitiesForeign Investment Committee

Matas Mori ArellanoExecutive Vicepresident

Foreign Investment Committee


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Snapshot of theChilean economy

2Government of Chile| Foreign Investment Committee Source: Central Bank of Chile (www.bcentral.cl)

Social

Population 16.9 million (1/77

times Chinesepopulation)

Official Language Spanish

Currency Peso

Literacy rate 97%

Life expectancy 78 years

Economy

GDP 2010 US$ 203 billion

GDP per capita (PPP, 2010) US$ 14,982 (IMF)2place in South America

Actual interest rate(Monetary Policy)

4.50%

Unemployment rate 2010 8.1%

Public debt (2009) US$ 2,5 billion

Exports (2010) US$ 69.6 billion

Imports (2010) US$ 54.5 billion

Chiles SovereignRatings

Fitch Ratings A+Standard & P oors A+

Moodys Aa3


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Source: Ministry of Finance (www.minhda.cl)

Chiles road todevelopment by 2018

3Government of Chile| Foreign Investment Committee


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Foreign Direct Investment in Chile(6.9% average as % of GDP 1996 - 2010)

Source: Central Bank of Chile (www.bcentral.cl)

FDI attraction



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FDI attraction 2010


During the year 2010, the Foreign Investment Committee (CIE) authorized foreign directinvestment (FDI) for US$13,262 million, the largest amount in history. Authorized FDIincreased in 201% as compared with 2009.

Source: Foreign Investment Committee (www.foreigninvestment.cl)

FDI authorized under D.L. 600(US$83,046 million 1974-2010)

US$13,262 million


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FDI Latin American countries, 2009-2010(US$88,200 million in 2010)

RegionalFDI attraction 2009-2010


*Regional out of 37 economies.Source: UNCTAD

(www.unctad.org)

16.6%

52.8%

43.3%

20.8%

4.0%

43.7%


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Businessenvironment ranking

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Business Environment Ranking 2010 2014

(15 out of 82 economies)

Source: Economist Intelligent Unit, April 2010 (www.eiu.com)Government of Chile| Foreign Investment Committee

1

2

3

5

8

13

14

15

17

19

35

40

45

51

Singapore

Switzerland

Finland

Canada

New Zealand

United States

Germany

Chile

Ireland

France

Mexico

Brazil

Peru

Colombia

GDP PP P

per capita 2010*

US$57,238

US$41,765

US$34,401

US$39,033

US$27,420

US$47,131

US$35,930

US$14,982

US$38,816

US$34,092

US$14, 265

US$11,289

US$9,281

US$9,445

*IMF


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Doing Business in 2011(Overall 43 out of 183 economies)

Source: World Bank, November 2010 (www.doingbusiness.org)

Category Position

Protecting investors 28

Registering a property 45

Paying taxes 46

Starting a business 62

Dealing with construction permits 68

Enforcing contracts 68

Trading across borders 68

Getting credit 72

Closing a business 91

Ease ofDoing Business

8


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High levels oftransparency

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Corruption Perception Index(21 out of 178 economies)

Source: Transparency International (www.transparency.org), 2010

Government of Chile| Foreign Investment Committee

1

1

1

4

4

6

20

21

22

24

30

41

69

78

98

164

Denmark

New Zealand

Singapore

Finland

Sweden

Canada

United Kingdom

Chile

United States

Uruguay

Spain

Costa Rica

Brazil

Per

Mexico

Argentina

GDP PP Pper capita 2010*

US$36,763

US$27,420

US$57,238

US$34,401

US$37,775

US$39,033

US$35,052

US$14,982

US$47,131

US$14,341

US$29,651

US$10,731

US$11,289

US$9,281

US$14,265

*IMF

US$7,951
http://www.transparency.org/http://www.transparency.org/


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A safe and reliablecountry to invest

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In 2010 Chile formally becamemember of the Organisation forEconomic Co-operation andDevelopment (OECD).

North America: Canada (1961); United States (1961); Mexico (1994)

South America: Chile (2010)

Europe: Germany (1961); Austria (1961); Belgium (1961); Denmark (1961);Slovenia (2010); Spain (1961); Estonia (2010); Finland (1969); France (1961);Greece (1961) ; Hungary (1996); Ireland (1961); Iceland (1961); Italy (1961);Luxemburg (1961); Norway (1961); Netherlands (1961); Poland (1996) ;

Portugal (1961); United Kingdom (1961); Czech Republic (1995); SlovakRepublic (2000); Sweden (1961); Switzerland (1961); Turkey (1961)

Pacific: Australia (1971); Japan (1964); New Zealand (1973); Republic ofKorea (1996)

Middle East: Israel (2010)



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11Gobierno de Chile | Ministerio del Interior

Globally integratedeconomy


Canada (1997)

United States (2004)

Mexico (1999)

Central America (2002) Panama (2008)

Free Trade Agreements

EFTA (2004)

Korea (2004)

Japan (2007)

China (2006)

Australia (2009)

European Union (2003)

Association Agreement

Colombia (2009)

Ecuador (1995)

Peru (2009) Bolivia (1993)

Mercosur (1996)

Venezuela (1993)

Bilateral Trade Agreements

India (2007)

Partial Trade Agreement

Malaysia

Turkey (2011)

Vietnam

Thailand

In negotiation, concluded

but not signed.

P4 (2006)

Chile has in force 21 agreements with 58 countries

(With access to the 62.5% of the world population)


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Mining32.9%

Services22.1%

Electricity, gas &water19.2%

Manufacturing11.3%

Transport &communications

11.2%

Others3.3%

FDI materialized under D.L. 600breakdown of inflows by sector(US$77,261 million)

FDI materializedunder DL 6001974-2010

Government of Chile| Foreign Investment Committee Source: Foreign Investment Committee (www.foreigninvestment.cl).
http://www.foreigninvestment.cl/http://www.foreigninvestment.cl/


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FDI materializedunder DL 6001974-2010

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FDI materialized under DL 600Breakdown of inflows by country of origin

(US$77,261 million)


United States25.9%

Spain18.7%

Canada17.7%

United Kingdom8.5%

Australia

4.8%

Japan3.9%

Mexico2.4%

Italy2.2%

Netherlands2.2%

France2.1%

Switzerland1.7%

Belgium1.3%

Others8.6%

Source: Foreign Investment Committee (www.foreigninvestment.cl).


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Origin of the FDIin Chile

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FDI materialized under D.L. 600

Breakdown of inflows by geographic zone(US$77,261 million)

North America-Pacific52.5%

Europe39.6%

Mexico andSouth America

5.4%

Middle East andAfrica0.2%

Asia0.2%

Others2.1%

Source: Foreign Investment Committee (www.foreigninvestment.cl).Government of Chile| Foreign Investment Committee


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FDI materialized under D.L. 600Breakdown of inflows by economy

(US$190,9 million)

FDI from Asiato Chile (except Japan)

China33.8%

HongKong, 10.8%

South Korea21.1%

India14.2%

Malaysia

12.0%

Taiwan5.8%

Singapore2.3%

Government of Chile| Foreign Investment Committee Source: Foreign Investment Committee (www.foreigninvestment.cl).


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A relationshipof contrasts


0

5.000

10.000

15.000

20.000

25.000

2005 2006 2007 2008 2009 2010

Trade

FDI from China

Chile-China economic relationships,

2005-2010(Trade: US$89,564 million; FDI: US$2,4 million)

Source: DIRECON /Foreign Investment Committee (www.foreigninvestment.cl)


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Chile and China:a track record of trust


Chile was the first South American country to establishdiplomatic relations with China (1970).

Chile was the first country in Latin America to supportChinas admittance into the WTO (2001).

Chile was the first country to recognize China as amarket economy (2004).

Chile was the first individual country with which China

signed a Free Trade Agreement (FTA) (2005).

Since the FTA, China has become Chiles largest tradingpartner while Chile is Chinas second largest partner inSouth America (2009).

Source: DIRECON


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Reduce the costs of investing

in Chile;

Offer appropriate and revelantinformation;

Coordinate our efforts withother public organizations;

Offer specific investmentopportunities in public andprivate projects;

China Desk;

Become our partners.

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What we cando for you


www.vecie.cl


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[email protected]

Foreign Investment Committee

LEGAL DISCLAIMER: The information contained herein is intended solely for general guidance. The

implementation of laws will vary according to the facts applicable to a specific case. This presentation

is made in the understanding that the Chilean Foreign Investment Committee is neither engaged nor

renders any kind of legal, accounting, tax or business advice. No endorsements are made by this

agency in connection with potential business ventures undertaken by potential investors.

Chile-China Relationship Beijing 2011

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