chile-china relationship beijing 2011
TRANSCRIPT
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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
4Government of Chile| Foreign Investment Committee
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FDI attraction 2010
5Government of Chile| Foreign Investment Committee
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
6Government of Chile| Foreign Investment Committee
*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
7
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
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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
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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
11Government of Chile| Foreign Investment Committee
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)
Government of Chile| Foreign Investment Committee
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
17Government of Chile| Foreign Investment Committee
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
18Government of Chile| Foreign Investment Committee
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
Government of Chile| Foreign Investment Committee
www.vecie.cl
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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.