Chile - Mainland China Trade 2023 Q2: Sustained Surplus

Key Market Takeaways: Chile - Mainland China Trade

The bilateral trade relationship between Chile and Mainland China showed a sustained surplus despite YoY declines in Q2 2023.

• Economic Pulse: Chile posted a $3.25B trade surplus ($8.29B exports vs. $5.04B imports), though both flows contracted YoY. Volatility in monthly trends hints at uneven demand recovery.
• Exchange Structure: The trade is resource-for-tech, with Chile supplying ores (52.4% of exports) and Mainland China dominating electrical machinery imports (26.9% of Chile’s inbound shipments).
• Strategic Interdependence: Highly complementary but asymmetric—Chile remains a critical commodity supplier, while Mainland China controls higher-value manufacturing exports.

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

Chile-Mainland China Trade Trend in Q2 2023

Chile Export Performance: Shipments to Mainland China

• Total Volume: $8.29B in Q2 2023.
• Growth Trend & Context: YoY decline persisted across all months, with May (-28.26%) showing the sharpest drop. No trade policy shifts were reported to explain the contraction.
• Key Volatility: June saw a 10.09% MoM rebound after a 1.16% uptick in May, suggesting potential short-term demand recovery.

Chile Import Performance: Sourcing from Mainland China

• Total Volume: $5.04B in Q2 2023.
• Growth Trend & Context: Imports fell YoY in all months, with May (-19.97%) marking the lowest point. No supply disruptions were reported.
• Key Volatility: April’s 21.65% MoM surge contrasts with June’s -0.78% dip, indicating uneven procurement patterns.

Chile - Mainland China Trade Balance & Market Dynamics

• Net Position: Chile held a trade surplus of $3.25B (Exports $8.29B > Imports $5.04B).
• Relationship Status: Sustained surplus underscores Chile’s role as a net exporter, likely driven by commodity demand despite weaker YoY performance.

Chile Import Trend from Mainland China 2023 Q2 (Source: yTrade)**

Chile Export Trend to Mainland China 2023 Q2 (Source: yTrade)**

Get Historical Chile Mainland China Trade Records

Chile-Mainland China Top Trading Products in Q2 2023

Chile Export Profile: What Does Chile Sell to Mainland China

• Top Commodity: Rank #1 export is HS 26 (Ores, slag, and ash) at 52.40% of total exports.
• Demand Driver: Mainland China uses these raw materials for industrial processing, particularly in steel and metal production.
• Concentration: Trade is highly concentrated, with ores alone accounting for over half 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 26.88% of total imports.
• Dependency Nature: Reflects critical technology dependency, as these imports support Chile's industrial and consumer electronics sectors.

Chile - Mainland China Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Chile supplies raw materials (ores, copper) while importing high-tech machinery and consumer goods.
• Value Chain Position: Mainland China holds the higher value-add position, exporting finished goods and machinery, while Chile remains a key supplier of unprocessed 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

The Chile-Mainland China trade relationship is expected to stabilize in Q3 2023, with modest recovery in commodity demand driven by Mainland China’s industrial rebound. However, persistent YoY declines signal underlying volatility, likely tied to fluctuating raw material prices and slower-than-expected economic recovery in Mainland China. The structural reliance on ores (HS 26) leaves Chile vulnerable to demand shocks, while imports of high-tech machinery (HS 85) will remain critical for domestic production. Traders should prepare for uneven growth, with potential short-term spikes in Q3 followed by longer-term consolidation.

Strategic Moves

• Lock in Long-Term Ore Contracts: Chilean exporters must secure fixed-price agreements with Mainland Chinese buyers to mitigate price volatility and stabilize revenue streams.
• Diversify Export Markets: Reduce overreliance on Mainland China by targeting Southeast Asian and Indian markets for ores and copper, where industrial demand is rising.
• Boost Local Tech Capacity: Chilean importers should negotiate joint ventures with Mainland Chinese machinery suppliers to transfer technology and reduce long-term dependency on finished goods imports.

Frequently Asked Questions

How did Chile - Mainland China trade perform in 2023 Q2?

Chile's exports to Mainland China totaled $8.29B, while imports were $5.04B, both showing YoY declines. The sharpest drop occurred in May (-28.26% for exports, -19.97% for imports).

What are the top exports from Chile to Mainland China?

HS 26 (Ores, slag, and ash) dominated Chile's exports, accounting for 52.40% of total shipments. These raw materials support Mainland China's steel and metal production.

What does Chile import from Mainland China?

HS 85 (Electrical machinery and equipment) was the top import, representing 26.88% of total imports. These goods are critical for Chile's industrial and consumer electronics sectors.

What is the trade balance between Chile and Mainland China?

Chile maintained a trade surplus of $3.25B with Mainland China in Q2 2023. The surplus reflects Chile's role as a net exporter of raw materials.