Boric expected to avoid taking sides in China-US disputes

Chile’s president-elect Gabriel Boric will likely avoid taking sides in disputes between China and the United States, according to an academic.

“One can infer that the new government will continue to support multilateralism and, through this path, keep strengthening and safeguarding the interests of small nations that don’t align with some major power,” Andrés Bórquez, coordinator of the Chinese studies program at the University of Chile, told BNamericas.

In 2019, current president Sebastián Piñera cancelled a visit to the headquarters of Chinese telecoms giant Huawei following complaints from the then US secretary of state Mike Pompeo, although Piñera did end up meeting with Huawei’s president.

It has been argued that though the US lacks the means to compete with Chinese investment directly, it can still exert diplomatic pressure on Santiago.

China has become an important investor in Chile, with operations in mining, infrastructure, telecommunications and energy, among other sectors, while it is also the country's main trading partner.

“Boric has emphasized that foreign trade and foreign investments in natural resources must be used to help achieve the country’s development targets and, at the same time, promote greener industries,” Bórquez said.

However, he added that the latter factor could make Boric’s administration closer to Beijing, since both Chile and China seek to transform their economies to a more sustainable model.

“You can’t rule out that Chinese investments can foster local development through knowledge transference and the establishment of R&D centers,” he said, adding that the new government plans to implement increased environmental protections in mining and energy.

China’s investments in Chile include the purchase of 24% of lithium and industrial minerals producer SQM by Tianqi for US$4.1bn in 2019 and State Grid's US$3bn acquisition of electric power distributor CGE the following year.

Chinese firms have also been awarded infrastructure concessions and rolling stock contracts, as well as the construction of one stretch of the future line N°7 of Santiago’s metro. 

However, Bórquez also warns that not all of Boric’s positions are in line with those of China, citing human rights as an example, where the president-elect has stated that he will condemn abuses regardless of the country.

Boric, who stood on a left-wing ticket, assumes the presidency on March 11.