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Sino-Chilean economic co-operation will blossom in the coming few years, thanks to the two countries' high economic growth and frequent business exchanges, according to an official with the Chilean Embassy in China.

The bilateral trade volume between China and Chile is expected to hit US$10 billion by the end of 2008, and Chilean investment in China will also increase, Sergio Toro, the embassy's second secretary, told China Daily.

"We are very, very confident that the bilateral trade volume momentum will continue to rise, after it was sparked off about 10 years ago,'' he said.

Even in the late 1990s when the financial crisis swept through Asia, bilateral trade was bullish.

"That was a remarkable achievement,'' Toro said.

Looking to the immediate future, he said China's imports of Chilean wine will also grow next year thanks to the former's reduction in tariffs, which will make the beverage more price competitive in China.

Chile is China's third largest Latin American trade partner, after Brazil and Mexico.

The January to October trade volume between China and Chile stood at US$2.84 billion, exceeding 2002's US$2.56 billion, statistics from the Chinese Ministry of Commerce show.

Meanwhile, the two countries will press ahead with their co-operation in the copper sector.

Toro said officials from the Chilean Ministry of Mining are expected to visit China in May to pursue a mixed commission on mining between the world's largest copper consumer and exporter.

Sino-Chilean joint ventures are likely to be established to further probe the copper industry.

"This is a big frog leap, compared with the traditional buying and selling relationships,'' Toro said.

Frequent economic exchanges have also led to soaring investment from Chile to world's biggest recipient of foreign direct investment.

Currently, about 50 Chilean companies have established themselves in China, mostly through representative offices in Beijing, Shanghai, Guangdong and Hong Kong.

Among them are Norasia, the globe's eighth biggest shipping company, and Codelco, the world's largest copper producer, according to the secretary, and "more are coming.''

"Chilean banks and airlines are primed to tap the lucrative Chinese market, as China's opening up gathers pace,'' Toro said.

He also said Chile, with its abundant natural resources and stable economic development, is a good springboard for Chinese enterprises to extend their scope in Latin America.

Yu Ping, vice-chairman of the China Council for the Promotion of International Trade, said: "China and Chile have good co-operative ties in the machinery, clothing and shipping sectors, and their co-operation will extend into further fields as their relationship develops.''

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