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It seems that each of the measures being implemented to mitigate the adverse effects of a deep crisis in economic and confidence is not solely intended to maintain or stimulate job creation. An even more important issue during the current trade deceleration is to lay the foundations for a new internal and, indeed, world order.

Whoever has had the time to follow the alternatives that have emerged from the dozens of bilateral and multilateral meetings held on every continent, in order to address the broad agenda of global needs and aspirations, may have realized that the concerns of common people are similar in Ottawa or in Buenos Aires; in Lisbon or Prague; in Jakarta or Tripoli.

Beyond being legitimate approaches presented and discussed in recent weeks in various forums and also within our own homes and communities, we should also be clear that we live in times that require bold and concrete actions aimed at energizing our economies; initiatives that provide business and their employees the tools that will allow them to rebuild the wealth needed to successfully deal with the multiplicity of demands that have emerged since the advent of the crisis in September 2008.

More opportunities mean more work. More work means better salaries and incentives for domestic consumption, as well as increased tax revenues. More tax revenues will result in a chain of positive consequences and events that can go on and on, providing stability, security and prosperity to an entire people, country and continent.

The case of Chile and China

When reviewing the list of options open to improving ties with the People’s Republic of China, Chile leads the Americas in terms of public-private interaction and cooperation instruments. In fact, Chile was the second Latin American country, after Cuba, to recognize the government of Beijing as the legitimate representative of the interests of the Chinese people. It was the first Latin American country to recognize China’s market economy. It was the first Latin American country to conclude negotiations with China for its membership in the World Trade Organization and thus its active participation in the multilateral trading system, including all that this implies in terms of transparency and rules enforcement. It was the first individual nation in the world to conclude a free trade agreement in goods with China. It holds agreements with China on labor cooperation, the environment and small businesses, as well as a service agreement that was negotiated and signed. It has an investment agreement, as well as an aviation treaty, which are currently being negotiating. The two nations share fifteen sister-city and sister-region agreements. Bilateral trade rose from $1.3 billion in 2000, to $ 17.5 billion as of April 2009; a more than twelve-fold increase.

This list of firsts is a good pattern for other South American nations to follow in their ties with China. Other nations, from outside the region, may also choose to use the Chilean model as a basis for their own China policy. Chile’s relationship with the PRC includes membership in APEC. Chile’s trade with APEC has increased from nearly $7 billion in 1996 to over $35 billion last year.

However, all good things usually have a flip side. This is the side we seldom see, though, because it is much easier to focus on the positive side of things rather than be to confront issues which may require more effort, responsibility and commitment from both the public and private sectors.

Some of the top flip-side issues with China:

China is one of Chile’s smallest investors, despite its huge reserves (more than $1.9 trillion as of March 2009) and despite its investment in other Latin American countries in the region. Chile has received less than $150 million of a total of more than $65 billion in Chinese investment during the last 30 years.

And the reasons for this are…? There is a lack of up-to-date information on Chilean direct investment opportunities which is available Mandarin Chinese. There are no brochures or websites in Chinese which offer easily accessible data on public works projects, energy, connectivity, environmental issues, housing and mining. Chile just seems to continue to think small instead of being much more daring and capitalizing on the comparative advantages we enjoy with China. A relationship that we have cultivated since 1971.

90% of Chilean exports to China is comprised of no more than 15 products, of which one third are minerals. Of the hundreds of fresh produce items available in Chile, less than a dozen are approved for export to China; a country with an emerging middle class comprising some 240 million people, who are potential consumers of these Chilean exports. By 2020, the size of the middle class in China will exceed 600 million. Some studies indicate that China is now home to more than 111,000 millionaires. China is an economy, though still in crisis, that represents an attractive market for our wines, fruits and vegetables, cheeses and dairy products.

Chile currently imports and implements very little technology from outside the consumer product category; technology which may offer concrete solutions to some fundamental issues that Chile has yet to address: energy solutions, cultural and recreation items, medical supplies and other issues.

The task ahead is not difficult if we commit ourselves, as a generation, to moving the China agenda ahead. If we decide to truly become motivated and accomplish our policy goals, nothing can stop us. We have the human resources and finances required to make a qualitative and quantitative leap in our relations with China. All this is available even as the planet is reorganizing itself and seeking new strategies for its continued sustainability.