Netizen Journalist

Argentina seeks refuge in China due to frustration with the United States

Holiday Ayo - The President of Argentina, Javier Milei, who harshly criticized China during the recent presidential election campaign, plans to visit Beijing in January 2025.

This is a signal of a change in Argentina's approach towards the Asian superpower. In a television interview last week, Milei described China as a "very interesting commercial partner" and said he was "surprised in a positive way by China".

Milei's remarks were in sharp contrast to previous remarks, in which he called China a "killer" country while vowing to prioritize relations with Western allies.

Milei expressed gratitude for the renewal of China's currency swap contract, which he said allows Argentina to fulfill its obligations to the International Monetary Fund (IMF).

In June, Beijing agreed to renew a 35 billion yuan (or about $5 billion) currency exchange tranche with Argentina's central bank until July 2026.

At the time, the government in Buenos Aires stressed that the move was "critical" to managing flows country's balance of payments.

"We had a meeting with the ambassador (Wang Wei). The next day, they unblocked the exchange," said Milei.

China has invested around USD 155 billion equivalent to IDR 2,421 trillion (exchange rate of IDR 15,624 per USD) in infrastructure projects in the Latin American region since 2005.

One of China's ambitious investments worth billions of dollars is the Peruvian megaport, which will tie the regional economy closer to its neighbors.

US officials (including General Laura Richardson, commander of US Southern Command) have warned Latin American governments to be careful when allying with Beijing, given its limited success rate.

Milei's planned visit to Beijing for the China-CELAC (Community of Latin American and Caribbean States) Forum comes as a condition for China's deal to unblock currency swaps, as previously reported.

 

Patricio Giusto of the Sino-Argentinian Observatory in Buenos Aires suggested that Milei's change in attitude may have been due to disappointment with the US response to his initial offer.

 

"I don't think Milei ever understood the nature and dynamics of US foreign policy," suggests Giusto.

 

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