Tianqi lithium will buy 32 percent stake in Chile SQM. China has warned Chile not to stop lithium deals.

China Tianqi Lithium is going to buy Chile SQM32 % equity, which is valued $5 billion. Chinese ambassador of Chile criticized Chile regulators and tried to stop the deal.

The Chinese government criticized the Chilean regulators trying to prevent the country's largest lithium producers to sell $5 billion stake in a Chinese company, said the move could damage bilateral relations.

The comments may be for days together Lithium (TianqiLithium) equity stakes in Chile giant Lithium SQM32 % sweep some obstacles. The latter is the world's second largest lithium producer, lithium is the production battery key raw materials. The seller of the deal, Canada Nutrien company.

Chinese ambassador to Chile to stroll to Chile era reviewers newspaper (LaTercera) said, against the stake sale is likely to be "on the development of economic and commercial relations between the two countries have a negative impact".

Striking new President Sebastian pinera (Sebastian Pinera) government pressure, he has vowed to attract more foreign capital to invest in Chile. China is Chile's biggest buyers of copper products, but compared with other South American countries such as Brazil, China's investment in Chile.

In January of this year, China says it hopes will be xi jinping, President of "area" infrastructure and investment plan extends to Latin America.

If sky Lithium successfully acquire SQM32 % shares, it will has the huge influence to global lithium supply, large sums of money and car makers are currently to improve the electric car production.

Of western Australia through its tallies in Lithium (Talison Lithium), the ownership of lithium, listed on the Shenzhen sky Lithium is one of the world's largest lithium suppliers.

Lithium SQM is one of the world's lowest cost producer, because of its use of the atacama desert (Atacama Desert) strong sunlight extract metal lithium from the salt water. According to the bank of nova scotia (Scotiabank) analysts' estimates that by 2025, SQM of lithium production can meet more than half of global demand for lithium.

On March 9th, the former President michelle bachelet (Michelle Bachelet) the last day of the government, national development agencies, executive vice President eduardo Chile? LAN (Eduardo Bitran) to Chile antitrust regulators to submit a petition urging him to stop day's Lithium acquisitions.

Than is put forward, to sell a 32% stake to sky Lithium, will make China in the global lithium has too much power in the market.

"According to law, in a market with great participation enterprise holding each other, is regarded as pose a big threat to competition, must therefore be investigated," than the LAN to the British financial times said in an E-mail.

Chile's national economy the prosecutor's office (FNE) is the latest in August to decide whether to pursue the case. According to records in Chile, sky Lithium executives had on March 29 and the agency a meeting to discuss this problem.

Chinese ambassador, said in an interview than orchid's comments will be "a fully commercial behavior became a political issue".

Of the Chinese embassy in Chile at San Diego didn't respond to requests for comment.

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