To facilitate Chinese companies’ investment in Chile, the Foreign Investment Promotion Agency, InvestChile, has launched a new edition of its investor’s guide “How to Invest in Chile” in Mandarin. Published online, the step-by-step guide is designed to serve as a “roadmap” for companies considering Chile as a potential investment destination.
“At InvestChile, we believe that cultural differences, mainly in terms of language, can be reduced in these times of greater connectivity and globalization of business. In this context, our new investor’s guide “How to invest in Chile” fills an obvious gap vis-à-vis potential Chinese investors: the lack of official documents in their own language”, said the director of InvestChile, Karla Flores.
“In the new guide, you will find all the basic step-by-step information for setting up your business, from tax structure to environmental permits and labor laws. Thus, as an agency, we contribute to bridging the gap between the business cultures of the two countries in the context of the growing interest of Chinese companies in our country,” she added.
With 14 chapters that include legal and business issues, the Mandarin guide is available at investchile.gob.cl/china.
Main business partner
Despite being Chile’s largest trading partner, with annual bilateral trade totaling US$57.7 billion, China (including Hong Kong) had a total stock of foreign investment in Chile in 2020 of only 1. US$7 billion, or 17.4% of foreign investment from Asia, according to the Central Bank of Chile.
Recent operations by Chinese companies in Chile, however, suggest that this trend is changing. Additionally, InvestChile is currently working on 28 Chinese projects worth more than US$7 billion in areas such as energy, mining and infrastructure.
InvestChile Director Karla Flores said that although China is Chile’s main trading partner, investments have followed a slower course. However, “over the past three or four years, investments have multiplied and come in very quickly,” she said.
Growing interest from Chinese companies has materialized in recent years with investments from companies like Sinovac Biotech, China Railway Construction Corporation, China Three Gorges, Didi and Vivo, and it has led financial institutions of the stature of Bank of China, Export-Import Bank of China and China Construction Bank to open branches in this South American country.