Domestic hardware can be extended to South America

The Ministry of Commerce recently released the news. Since August 1, 2010, the "Supplementary Agreement on Trade in Services" between the Governments of the People's Republic of China and the Republic of Chile has been implemented. According to the agreement, Chile’s 37 departments and sub-sectors such as architectural design, computer, mining and manufacturing will be further open to each other on the basis of their respective WTO commitments.
It is understood that on October 1, 2006, the China-Chilean Free Trade Agreement was implemented. According to the agreement, the import tariff of 74% of the tariffs of the Chilean side will be reduced to zero immediately after the "Agreement" enters into force, and the import tariffs of other products of the two parties will be reduced to zero within 5 and 10 years after the "Agreement" takes effect. The two parties only retain tax items of less than 3% as exceptions and keep the original tariff unchanged.

Domestic fasteners and steel wire hangers are frequently opposed in Europe and the United States. Domestic hardware companies need to open up international markets outside Europe and the United States to fill the lost market share. After some opportunities such as the zero tariff of ASEAN and the World Cup in South Africa, the domestic hardware companies welcomed the opportunity to open up the South American market. It is worth noting that the expansion of international market share must be based on strict quality as a prerequisite and guarantee. Before there was news about Yongkang's delivery of Egypt's poor quality electric tools, domestic hardware companies must take a long-term view and rely on sincerity. If they get "having sesame seeds and throwing watermelons," it will not be worth the candle.

Or consider buying local mines

Chile is the world’s largest producer of copper, and its copper reserves and exports are among the highest in the world, with proven reserves exceeding 200 million tons, accounting for 34% of the world’s total reserves. It can be said that Chile holds a pivotal position in the global copper mining and export industries. Chile is the main exporter of copper worldwide. While copper accounts for about 80% of the raw materials for plumbing, the plumbing industry is most affected by the price of copper. After the “Agreement” is formally implemented, domestic hardware companies may consider Chile’s direct procurement of copper materials, and powerful companies can purchase mines in Chile. If raw material prices are high, controlling the mining rights of the mines is equivalent to controlling the quality of raw materials. The price creates the largest profitable space for the company.

Using this as a springboard to radiate South America

It is understood that there are already trade points established by companies in Chile. With the implementation of the "Agreement", the cost of local distribution of products in Chile is expected to decrease. In the future, companies can use this springboard for Chile to further radiate the vast South American market such as Brazil.