Chile in the US-China Competition: Defying Zero-sum Logic with Pragmatism and Complementarity?

Abstract

Latin America has become a battleground for power competition, especially during the pandemic, with China’s economic influence in the region steadily growing over the last decade. Chile stands out as a regional pioneer in its relations with China, exemplified by the Free Trade Agreement signed in 2005, leading to a significant boost in bilateral trade. China’s involvement as a financial partner also expanded during the past five years. Chile’s strategic partnership and participation in initiatives like the Belt and Road Initiative and the Asian Infrastructure Investment Bank have further solidified its ties with China. This chapter aims to examine Chile’s role as a bridge to Asia and its ability to maintain strong relations with both China and the US. The authors explore the benefits and pragmatism behind Chile’s approach over the years and seek to understand how it currently manages the competition between the US and China. They question whether Chile’s case serves as a successful example of non-zero-sum diplomacy or if it’s merely an exception due to past progress. By reviewing recent diplomatic events, domestic policy implications and proposed autonomous pragmatism in Chilean foreign policy, the authors seek to provide answers to these questions.