A model for trust building: The state, market, and cultural norms in Sino-Chilean economic exchange (original) (raw)

The Free Trade Agreement (FTA) between the People’s Republic of China (PRC) and Chile came into effect in 2006. The complementarities of both nations’ economies, their shared profile as export–oriented countries, the shared institutional framework and their diplomatic history forecasted a promising future of cooperation. Yet, expectations have hardly been fulfilled. Based on the analytical framework provided by trust theories –a culturally-shaped variable– and on the empirical support given by an extensive fieldwork, this dissertation explains why Sino-Chilean economic cooperation has not flourished as expected. For this, it explores the sources of international –between states– and transnational –between business and corporations– trust. The findings show the pivotal role trust has played in their economic foreign policy and how they have used it as a strategy to fulfill their national interests. Although the results demonstrate that both states have engaged in a trust-building pro...