Chinese Foreign Direct Investment in Chile: Between Announcements, Diversification and Structural Challenges

Despite solid diplomatic relations, Chinese foreign direct investment in Chile remains a relatively recent and marginal phenomenon compared to other Latin American countries. This study examines the effects of Chinese investment on employment, technology transfer, and domestic policy in Chile, focusing on the cases of Sky Solar, BYD, and China Railway Construction. While promising announcements were made, the findings reveal that Chinese investment has primarily generated low-skilled labor positions, with executive roles held primarily by Chinese nationals. Although frequently discussed, technology transfer projects have needed to materialize faster, and the impact on domestic political discourse has been limited. Despite the diversification of investments in energy, infrastructure, and mining sectors, Chinese investment in Chile remains small in volume. The study highlights the need to reassess the potential long-term implications of Chinese investment for Chile's economic and political landscape.