Chinese Premier Li Keqiang and Chilean President Michelle Bachelet have taken part in an economic forum with business leaders from the two countries in Santiago.
Li Keqiang has used the opportunity to call for trade liberalization to address the challenge of a weakened global economy.
"We oppose trade protectionism and urge the liberalization of trade, as well as the globalization of cooperation. This, I think, is the best medicine to address the slowdown of the economy, and the strengthening of our industrial capacity co-operation, investments cooperation, as well as financial cooperation."
China and Chile have entered into a new three-year currency swap agreement worth around 3.5-billion U.S. dollars.
A renminbi clearing bank is also being established in Chile, the first in South America.
Chilean President Michelle Bachelet says they're hoping China can help South America become more integrated.
"For Chile, China's support is important in order to achieve the desired physical integration of South America through bi-oceanic corridors. Because with this we can progress in the consolidation of Chile as a port country, bridge country, to Asia, from Brazil to the Chilean coasts. In this field important infrastructure works are required, both in the region and Chile, which open interesting opportunities for Chinese investors."
Premier Li Keqiang's time in Chile is the last stop of a 4-nation tour of the region.
He's also made stops in Brazil, Colombia and Peru.
