While the US Secretary of the Treasury, Scott Bessent, in the week before the elections, signed almost a blank check to support us, a Chinese buyers delegations was in Buenos Aires visiting exporters. They left a message that, as a result of the fight with Trump, Argentina and Brazil are reliable food suppliers for Beijing.
They weren’t just words: soybean purchases tripled which went from 4 million tons to the current 12 million, which implies jumping from US$ 1,000 million to US$ 4,000 million. And they moved forward with agreements with Senasa, the health service, to send them corn and wheat. Two ships of soybean meal even left for Shanghai.
In this environment, Cofco, from China and one of the main exporters, is very active, and a change in Syngenta, also with Chinese capital, which in addition to supplying inputs, launched itself into exports. “The commercial relationship “flows normally” synthesizes to Clarion Gustavo Idígoras, president of the powerful Ciara, which shelters the oil industrialists.
But there is much more since China stopped copying and became a country at the technological forefront. This is what explains, for example, the arrival of BYD, the Chinese car brand that is all the rage in the world due to its level of innovation. To the point that the Dietrich dealership, from the family of Macri’s former minister, will offer them. And Corven, from the Iraola family, prepares to build another Chinese car brand. After all, for every three vehicles made on the planet, China makes two. Last year it produced 30.3 million vehicles, 40% electric.
With that strategic patience that characterizes it, China slips that at least in Argentina it does not cross the red lines that Washington marks. These are the Hidrovía in which it was left out of the compulsa and the nuclear one, which never advanced. The Neuquén observatory, which according to the Chinese is nothing more than that, and 5G, would be the only stones in the US’s shoe.
Although, they do not worry in the Casa Rosada. Precisely, with its trade liberalization scheme, the entry of Chinese products took a boost rarely seen before. And Javier Milei went from insults at the beginning of his administration to saying that China is a partner who doesn’t ask for anything. China reciprocated by renewing the credit that allowed it to use the swap to pay for imports of US$5.5 billion. And the swap for US$19,000 million that increases the Central reserves is maintained.
Regarding imports, the growth of aggressive Shein and Temu platforms They have put even Mercado Libre on alert due to the level of competition.
Judging by the destination of exports, China is the first partner for Catamarca, Santiago del Estero, La Rioja and Chaco. And the second for Buenos Aires, Córdoba and Santa Fe. These are products with little added value that yield a deficit balance.
According to Sergio Spadone, president of the Argentine-China Chamber of Commerce, “we are complementary and we must try to take advantage of the opportunities on both sides. On the Chinese side, Argentina has the possibility of equipping itself and achieving the investments it needs, such as in the mining area. China consumes half of the copper produced in the world, 47% of the aluminum and more than half of the steel. The possibility of turning around the trade deficit is by exporting minerals like Brazil does, which maintains a surplus of US$60 billion with China.” In addition to grains, Argentina sells meat and fish.
Spadone ventures that in addition to some Chinese companies known to us, from the ICBC bank, Huawei or Lenovo, there will be many others such as Midea with a growing presence in home appliances.
Of course, Argentina’s relationship with China is far from what Peru may have, with greater dependence on trade and infrastructure. Just one fact: last year Xi Jinping inaugurated the monumental port of Chancay in the Andean country, which cost US$3 billion and is preparing to compete in importance with the Panama Canal.