Dependency with Chinese Characteristics? A case study of Chinese engagement in Chile
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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.