2025 is emerging as a crucial year in relations between Chile and China. Not only by the global commercial war unleashed between the Asian giant and the US, but for an unexpected attack on the Rucalhue hydroelectric plant. The subsidiary of the Chinese International Water & Electric group (CWE), in the commune of Santa Barbara, Biobío Region, suffered the action of a group of hooded men who injured two guards and destroyed 50 trucks and machines, with quantified losses in US $ 5 million.
“This episode is marking a before and after for the position of China with respect to our country. For them it is something very serious, unexpected and particularly traumatic because it is the type of facts to which they are not accustomed in countries like Chile. That dislodged them and left them very, very worried,” said a source aware of the dynamics of Asian investors, who adds that there is alert with respect to the country climate towards their presence.
The worst attack in the southern macrozone of recent years, motivated an energetic rejection by the Chinese ambassador, Niu Qingbao. And not only immediately after the fact, but with the passing of the days he has maintained a strong public exhibition, with letters and press conference included, in which he has been raising the tone of his site to the Chilean authorities, pointing out that his government “demands severe punishment to those responsible, the effective guarantee of the safety of Chinese personnel and projects, compensation for the losses of the company”, in addition to request Safe and favorable environment for Chinese companies ”, making a difference in the low profile that has characterized the actions of that diplomatic mission.
After that new and active new tone, there is the concern for what they estimate can become an attack- not terrorist- but commercial towards the other Chinese investments in the country.
Although, Chinese companies have kept strict silence, sources close to these companies indicate that there is concern because an antichino feeling is generated, more now that the US is in negotiations for tariffs, which can generate a greater demand for a control of their investments, as well as a mechanism of investment screening in strategic or risk sectors for national security.
Maintaining a strict reservation, companies with Chinese presence recognize that in general a negative climate is perceived towards the presence of actors in that country. They identify milestones in a wide range that goes from the efforts of parliamentarians to request a process of expiration of the CGE concession after the blackout last August asking for a level of sanction similar to that applied to Enel, or the stir caused by the investigation to the deputy Karol Cariola (PC), for alleged traffic of influences in favor of the Chinese businessman and loobist Emilio Yang. In recent weeks, criticisms of the accelerated expansion of Chinese malls in the country – which already add 200 establishments after a 75% growth in the last three years, according to the consultant Colliers – from the Santiago Chamber of Commerce, as well as those called to investigate its proliferation by the national multigremial for constituting “a true threat” to the established item.
The concrete thing is that the progress of Chinese investment is noted, are in strategic sectors and also in others that are not as much as retail and consumption. In each of them they have been gaining interesting positions silently, hence their concern that there is no change.
According to Investchile, Chinese businesses in the country grew from US $ 310 million in 2016 to about US $ 4,250 million in 2023.
Chinese companies are therefore attentive to what happens in the coming weeks, within the framework of the Chile-China Business Council meeting on May 15, which will be attended by President Gabriel Boric, after his assistance to the Osaka Expo in Japan. There it is expected that the president meets the Chinese leader, Xi Jinping, who will probably insist on the issue of the certainty and safety of Chinese investments in our country.
Lithium: key input for strategic industries
Although in mining the Chinese presence is very limited, in the lithium it is superlative. In 2018, Tianqi Lithium invested US $ 4,050 million to achieve 24% of the property – which was diluted to 22.16% – in SQM, today the main producer of “White Gold” in the world.
Byd and Tsingshan – both among the 20 largest private companies in China – managed to impose itself in the tenders that Corfo made to raise lithium battery factories in Antofagasta in 2023 and 2024. The first implies an investment of US $ 290 million and the second of US $ 233 million and both use preferential fees of SQM ore and albembarle. The building of these usines has not been exempt from difficulties, many of them with the same Corfo, and despite the initial promises, they still do not materialize.
Even so, Chinese firms have expressed interest in open lithium processes, with different success. Tianqi has looked at the different processes, but so far he has not opted for any. In Ascotán, China Tsingshan expressed interest in that salt, but finally the government opted for the consortium formed by Eramet, Quiborax and Codelco.
The same in the Altoandino project in Enami: although both Byd and Tsingshan and Catl wanted to enter as partners. On the short list is only the first.
Byd is also the main supplier of electric buses for the capital of public transport.
Cars: they moved to the Japanese and Korean
Since 2007 that seven Chinese car brands circulate through the streets of the country. The first two brands of the Asian nation in landing in Chile were Great Wall, by Derco; and Chery, with Skbergé; which together, according to data collected by the National Automotive Association of Chile (ANAC), then had 2% of the market, with 224 units marketed.
Eighteen years later, they are living their golden years and, for the second consecutive period, Chinese brands lead the sales of light and medium -sized vehicles nationwide, defeating the Japanese and Koreans. According to figures from the Guild Association, as of March 2025, 20,294 light and medium -sized vehicles were sold, 28.8% of the total; While Japanese cars have 28.1% of the market and South Korean, 14.3%. But if cars are manufactured, more than 40% occur in China, with brands from other countries.
It is not a recent phenomenon: at least in the last five years, Chinese brands are the best selling in Chile, there are 34 brands in that country today.
Not on property, but key in technology
Although Chinese companies are not due to telecommunications companies operating in Chile, they are key in the technology they use. Given the strategic sensitivity of this item, the companies declined to speak publicly of this Chinese dependence, but they did it out of registration and confirmed that in the sector are fundamental firms such as Huawei and Zte.
Huawei executives commented that “historically we have had contracts with all Chilean telecos, that is, from 3G onwards. That is, in 22 years, all, in some minute, they have had contracts with us.”
ZTE is a supplier of multiple fixed and mobile technologies and confirmed that they work in the upgrade of the Movistar Network, although they are also suppliers of clear equipment and WOM in different products. “We have gained a lot of land in the country, especially since 2021 onwards,” they said in the Chinese company.
The only most independent telco of Chinese technology is Entel, which works with Huawei but mainly with the Swedish Ericsson.
In this regard, Roberto Gurovich, from G&M Consultores, explained that “in recent years we have seen a consolidation of Chinese technological suppliers in the telecommunications industry, both in the region and in Chile, with companies such as Huawei, ZTE, among others, where on the one hand they have developed an advanced technology in the electronics of networks and, on the other, they offer the main operators of the region. match other suppliers such as Nokia or Ericsson, which has caused an important migration of networks electronics towards those companies of Chinese origin. “
It is confirmed by the expert Óscar Cabello: “Huawei is probably the main supplier of Claro and Wom, followed by Telefónica. In Entel not so much, since they still trust an important part of their network to more traditional suppliers such as Ericsson (from Sweden).”
Actors in the electricity grid
China’s position in energy was consolidated in 2021 when the firm State Grid acquired almost 97% of the CGE property, two years after having acquired Chilquinta Energía, with which its participation in the electrical distribution market exceeded 50%.
In transmission, China Southern Power Grid International had taken the first step in 2018, specifying the acquisition of 27.7% Transelec. And among the latest incursions, ByD signed a strategic agreement for the Grenergy Atacama solar energy and storage project, the largest in its kind in the region.
In concessions
Less than a decade ago, concessions also aroused the interest of Chinese companies.
They have a growing presence in infrastructure concessions, especially roads, rail works and hospitals, with a total of seven projects of the 79 assigned in the history of this investment mechanism. These seven projects correspond to 8.8% of the total participation.
One of the Chinese construction companies with several projects in Chile is China Railway Construction Corporation (CRCC). It is in charge of the Remodeling Route 5 in the Talca-Chillán section, the foundation of the Chillán-Collipulli route, the construction of the National Institute of Neurology and the construction of the Coquimbo Hospital. The construction of civil and railroad works of the Mapocho-Batuco train was also awarded.
Another giant that competes in this segment is China Communications Construction Company Limited (CCCC). Through its Chinese subsidiary Road and Bridge Corporatious the Maule Health Network that includes three hospitals: Cauquenes, Constitution and Parral.
Also through its Chinese subsidiary Harbor Engineering Company Ltd. is in charge of the construction of the Las Palmas reservoir.
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