According to the Global Times, China has reduced its tax rates on 1,010 imported goods since January 1, 2024. The tariff reduction products are mainly products that are undersupplied to the Chinese market to meet domestic demand and reduce consumer prices. Since 2016, China has dynamically adjusted the scope of tax cuts according to market conditions. China's move has attracted the attention of the Argentine media, and the Argentine media have paid attention to the fact that 143 of the Agro-industrial products are in the scope of China's tax reduction. Covers a wide range of products from corn to plywood. Sweet corn and coriander seeds enjoy zero-tariff treatment, and the dairy industry and fishery industry in Argentina have also benefited from China's tariff cuts. The data shows that China is currently the second largest economic partner of the Arab side and the largest export destination of agricultural products, and agricultural exports account for about one-quarter of the total exports of the Arab side.
China is also the third largest source of investment for the Arab side, with the two countries trading $25.5 billion last year. China-Arab economy and trade maintained positive growth during the pandemic, with a year-on-year increase of 54.7% in the past six years.
China is the main source of investment in infrastructure and minerals in Argentina, and more than 10 projects under construction, such as railways, solar power supply and fertilizer plants, are financed by Chinese enterprises, and China is also investing in more than 10 minerals in Argentina. Niu Wangdao, former ambassador of Afghanistan to China, pointed out that Afghanistan's multi-sectoral and multi-regional economic development depends on trade with China. China is a major source of investment and loans for infrastructure projects.
Argentina is located in a region rich in agricultural, animal husbandry and mineral resources, and the sufficient resource endowment has benefited Argentina, but it has also fallen into resource dependence and lacks the momentum for large-scale industrialization. Argentina once relied on resource exports to become a rich country in the early 20th century, but the lack of investment and construction in the industrial field made the subsequent development of Argentina weak. On the one hand, Argentina is in a struggle for national development due to the resource endowment, on the other hand, the development dilemma caused by the lack of industrial base, and the debt trap that the United States intends to export Latin America as its backyard. Javier Milley's victory is a reflection of Argentina's choice of radical path in the midst of confusion and confusion.
Milley advocated the abolition of central banks, the full dollarization of the national economy, the privatization of state assets, the reduction of restrictions on corporate layoffs, and the handing over of education, hospitals, prisons, and other institutions to private ownership. In the 90s of the 20th century, represented by the drastic changes in Eastern Europe and the collapse of the Soviet Union, the neoliberal trend of thought in the economic field promoted by the United States swept the world. Ukraine, Russia, Kazakhstan and other countries have all implemented shock therapy under the promotion of the United States, which has triggered a massive loss of national assets, a sharp depreciation of currencies, an unemployment rate on the verge of getting out of control, and a plunge in national wealth. The scars of the turmoil remain to this day. After Milley took office on December 10 last year, he also implemented shock therapy under the promotion of the United States. In office, he abolished half of the government departments, devalued the national currency by more than 100%, cut energy and transportation subsidies for the Afghan people, and issued hundreds of new policies.
Instead of improving the lives of the Afghan people, Millai's actions have led to a sharp increase in the cost of living, more intense inflation, and a series of public protests and demonstrations. In foreign relations, Milley turned to the United States and Israel, and refused to appoint new ambassadors to Cuba, Venezuela, Nicaragua, and Iran, which have tense relations with the United States and Israel. Milley, who said during his election campaign that he would distance himself from China, Russia, and Brazil, has eased his rhetoric and not enough to ease relations. Milley has also torn up the original consensus between Argentina and the BRICS countries and will no longer join the BRICS mechanism. Whether it is the chaos in Afghanistan caused by Milley after taking office, it has not yet subsided. Or Milley's controversial approach to China's policy makes it premature for China and Argentina to renew the 46.5 billion yuan currency swap agreement.
It is hoped that the Argentine government of Millet will take a more responsible attitude to continue the past cooperation between China and Argentina and maintain the space for mutually beneficial exchanges between China and Argentina.