It's well known that this Asian giant is currently the world's largest supplier, but few know that China is also one of the most important customers for the Chilean agri-food sector, especially when it comes to fresh fruit.

The trade relationship between the two countries has matured to the point of becoming strategic, but like any relationship, it requires adaptation. Today, to continue growing in this demanding market, it's not enough to have a good product; it's also necessary to understand the logic of Chinese business. And within that logic, the yuan—the local currency—is gaining prominence.

For years, Chilean exporters have transacted with China in dollars. However, more and more companies are choosing to operate directly in yuan. The reason? It's simple: it reduces exchange costs, improves the experience for Chinese customers, and allows greater control over the payment flow. In a sector like fruit, where timing is key and margins are tight, this makes a difference.

When a Chilean company sells cherries, blueberries, or grapes to China, it is indirectly subject to fluctuations in the exchange rate between the dollar and the yuan, which have been significant in recent years. Importers experience a negative impact on their prices when the yuan appreciates against the dollar, as Chinese customers seek to adjust their prices. However, they do not benefit from additional gains when the currency depreciates, as customers are unlikely to pass the exchange rate gains on to prices. This represents a "one-way risk."

Furthermore, paying and receiving payments in yuan strengthens business relationships with Chinese importers. From their perspective, operating in their currency is more convenient, more transparent, and cheaper. For example, they can make a transfer in their own currency or reduce exchange costs in a more regulated foreign exchange market. Specialized platforms like Ebury facilitate these payments, ensuring regulatory compliance, lower transaction costs, and faster processing.

But beyond the financial aspect, speaking in yuan is also a sign of commitment to the Chinese market. It means understanding that selling in China isn't just about exporting, but rather requires integrating into a cultural, commercial, and digital ecosystem profoundly different from the Western world. It means adapting to tools like WeChat to do business, negotiating flexibly, and building personal relationships to close deals. In short, it means playing by the local rules to win.

Fruit exports to China have been a success story for Chile. In the first four months of 2024, 51.1% of Chile's total fresh fruit volume (507.000 tons) was destined for the Asian giant, according to the United Nations COMTRADE database on international trade. But if we want this success to be sustainable over time, we must continue to evolve. Exchanging the dollar for the yuan is not just an operational decision: it's a future strategy. Because in the new international trade landscape, speaking yuan means speaking the customer's language.

Alfonso Molinare

Country Manager, Ebury Chile