China and Chile have signed an agreement that deregulates investment in service industries. The deal will open up 23 service industries in China's booming economy to investment by Chile, China's Ministry of Commerce said late Sunday. The agreement also gives Chinese companies access to the Chilean market in 37 industries including law, real estate and engineering. The pact will likely come into operation at the beginning of 2009. The agreement was signed after Chilean President Michelle Bachelet met Chinese President Hu Jintao during a ceremony at a regional economic forum in Hainan. Hu said he hopes the deal will help diversify trade with Chile and open China's service market, the China Daily newspaper reported Monday.
The new agreement expands on an existing free trade pact signed between China and Chile in 2005, the first that China signed with a Latin American country. Since then bilateral trade between the two countries has grown 65 percent to $14.7 billion in 2007, the ministry said. Chile exports mostly copper and wine to China. China’s exports to Chile are mostly computers, communications technology, electronic products and automobiles, according to the ministry. China has been trying to strengthen its trade ties around the globe as it seeks out access to materials and services to supports its long-running economic boom. Last week, China signed a free trade agreement with New Zealand, its first such pact with a developed country. China is also pursuing a similar agreement with Australia.
Journal of Commerce
