Chile - Mainland China Trade 2023 Q1: Robust Surplus, Tech Imports

Key Market Takeaways: Chile - Mainland China Trade

The bilateral trade relationship between Chile and Mainland China remains robust, with Chile maintaining a strong net exporter position in Q1 2023 despite mixed growth trends.

• Economic Pulse: Chile posted a $6.08B trade surplus ($10.41B exports vs. $4.33B imports), though imports from China plummeted YoY (-46.5% avg).
• Exchange Structure: The trade statistics reveal a resource-for-tech complementarity—Chile supplies ores (42.97% of exports) while importing Chinese machinery (22.37% of imports).
• Strategic Interdependence: Highly complementary economies, but China holds the value-add advantage with manufactured goods dominating Chile’s import basket.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Chile-Mainland China Trade Trend in Q1 2023

Chile Export Performance: Shipments to Mainland China

• Total Volume: $10.41B in Q1 2023.
• Growth Trend & Context:
  • YoY growth was mixed: +20.55% in January, -8.3% in February, and +11.86% in March. No specific trade news to explain fluctuations.
• Key Volatility: February saw a sharp MoM drop (-35.81%), while March rebounded with +24.19% growth.

Chile Import Performance: Sourcing from Mainland China

• Total Volume: $4.33B in Q1 2023.
• Growth Trend & Context:
  • YoY declines were severe: -51.01% in January, -39.93% in February, and -48.43% in March. No news to contextualize the slump.
• Key Volatility: March posted the lowest value ($1.34B) and steepest MoM drop (-13.16%).

Chile - Mainland China Trade Balance & Market Dynamics

• Net Position: Chile recorded a trade surplus of $6.08B (Exports $10.41B > Imports $4.33B).
• Relationship Status: Strong net exporter role, with exports more than double imports despite YoY import contractions.

Chile Import Trend from Mainland China 2023 Q1 (Source: yTrade)**

Chile Export Trend to Mainland China 2023 Q1 (Source: yTrade)**

Get Historical Chile Mainland China Trade Records

Chile-Mainland China Top Trading Products in Q1 2023

Chile Export Profile: What Does Chile Sell to Mainland China

• Top Commodity: Rank #1 Export is HS 26 (Ores, slag, and ash) at 42.97% of total exports.
• Demand Driver: Mainland China uses these raw materials for industrial processing, likely in steel production and other manufacturing sectors.
• Concentration: Trade is highly concentrated, with the top 3 categories (HS 26, 08, 28) accounting for 77.96% of exports.

Chile Import Profile: What Does Chile Buy from Mainland China

• Top Commodity: Rank #1 Import is HS 85 (Electrical machinery and equipment) at 22.37% of total imports.
• Dependency Nature: Critical technology dependency, as imports are dominated by high-tech and machinery (HS 85, 84, 87).

Chile - Mainland China Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile exports raw materials (ores, fruits, copper) while importing high-value manufactured goods (machinery, electronics, vehicles).
• Value Chain Position: Mainland China holds the higher value-add position, supplying complex manufactured goods, while Chile provides commodities.

Import Analysis by Product: Mainland China to Chile (Source: yTrade)

Export Analysis by Product: Chile to Mainland China (Source: yTrade)

Check Detailed Chile-Mainland China Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Chile’s trade surplus with Mainland China is likely to persist in Q2 2023, driven by sustained demand for raw materials like ores and copper (HS 26) amid China’s industrial recovery. However, the sharp YoY decline in imports signals potential supply chain disruptions or shifting procurement strategies, which could pressure Chilean buyers of Chinese machinery (HS 85). Traders should anticipate volatility in export volumes, particularly if China’s manufacturing sector faces slower-than-expected growth. The resource-for-tech exchange model will remain dominant, but diversification is critical to mitigate overreliance on commodity exports.

Strategic Moves

• Lock in Long-term Contracts: Chilean mining exporters should secure fixed-price agreements with Chinese buyers to hedge against commodity price swings and ensure stable revenue streams.
• Diversify Import Sources: Businesses reliant on Chinese machinery (HS 85) must explore alternative suppliers in Southeast Asia or Europe to reduce vulnerability to supply chain shocks.
• Invest in Value-Add Processing: Chile should prioritize domestic processing of raw materials (e.g., refining copper) to capture higher margins and reduce exposure to commodity price cycles.

Frequently Asked Questions

How did Chile - Mainland China trade perform in 2023 Q1?

Chile exported $10.41B to Mainland China with mixed YoY growth, while imports fell sharply to $4.33B, resulting in a trade surplus of $6.08B.

What are the top exports from Chile to Mainland China?

The top exports are HS 26 (Ores, slag, and ash), HS 08 (Edible fruits), and HS 28 (Inorganic chemicals), accounting for 77.96% of total exports.

What does Chile import from Mainland China?

The top imports are HS 85 (Electrical machinery and equipment), HS 84 (Machinery), and HS 87 (Vehicles), reflecting a high-tech dependency.

What is the trade balance between Chile and Mainland China?

Chile recorded a trade surplus of $6.08B, with exports more than double imports despite significant YoY declines in imports.