China and Chile expanded their bilateral business ties by upgrading the Free Trade Agreement (FTA) during the Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Da Nang, Vietnam.

The upgraded FTA covers protocol dealing with government procurement, competition policy and e-commerce businesses.

The agreement will be China's first FTA upgrade with a Latin American country, and will lead to a further diversification of Chilean exports, from both goods to services.

From long-term view, China's demand for Chile's agricultural products such as fruit and meat products will continue to increase. Cooperation in areas of e-commerce and environment has great potential.

Chile is China's third-largest trade partner in Latin America after Brazil and Mexico and a major copper, wine and fruit supplier to the country. The volume of bilateral trade amounted to $31.86 billion in 2016, data from the General Administration of Customs shows.

China and Chile signed their FTA in 2005. Negotiations for upgrading the FTA were initiated in November 2016 and the agreement was completed a year later.