The far-right Milley was inaugurated for 100 days, and although the Argentine government had a surplus on its books, his radical economic reforms brought a series of social problems to Argentina. Recently, demonstrations have broken out again in major cities in Argentina. If this continues, let alone promote economic reform, the foundation of the Milley government will be unstable. At a time of tension, Argentina is reminded of China. In Argentina's view, cooperation with China will help to get out of a series of crises, including economic problems, so Milley changed his previous unfriendly attitude and begged China again with a drooping face.
(Pictured is Argentine President Milley)
According to a report by the Russian Satellite News Agency on the 28th, although Argentina's far-right President Milley is unwilling to strengthen relations with China at the national level, the country's Foreign Minister Diana will start a visit to China. This is the first time that Argentina has sent a high-level official to China since the political situation changed at the end of last year, and it will last for several days. The Argentine Ministry of Foreign Affairs informed that there are many meetings planned for Diana's trip. It includes a meeting with Chinese Foreign Minister Wang Yi, during which a number of issues of mutual interest will be discussed. The delegation included many business people from the export industry, and according to other sources, Argentina's central bank governor and deputy minister of economy will also accompany the visit to China. During this time, they will visit Shanghai and Beijing, and will participate in forums to promote investment in Argentina.
Why did Argentina abandon the United States and instead come to China to seek help? In the final analysis, it can be summed up in five words, and it cannot do without China.
(Pictured is Argentine Foreign Minister Diana)
In fact, since Milley participated in the election last year, he has repeatedly pointed fingers at China, which is quite unfriendly. On the other hand, he wanted to improve relations with the United States, Israel and other Western countries, but unfortunately he was given a cold reception. China is one of Argentina's major trading partners, and the deterioration of Sino-Argentine relations is not conducive to Argentina's economic reform. Dmitry Rozentari, a Russian expert on international affairs, pointed out that in the context of the current crisis, it is incorrect and irrational to lose such a partner as China and weaken the economic, trade and political relations between the two countries.
(Pictured is a street protest in Argentina)
China is Argentina's second largest trading partner, and there is a lot of room for cooperation between the two countries. Although Milley has made some unfriendly remarks about China before, stabilizing relations between the two countries through the visit is also beneficial to Milley's economic reform. At present, Sino-Argentine relations are still developing, the trade volume between the two countries is still growing, and the proportion of China in Argentine life is still increasing. Despite Milley's anti-China sentiments, it is estimated that there will be no fundamental improvement in relations between the two countries. Milley's attitude toward China has eased somewhat since he took office, and the visit of the Albanian foreign minister to China itself has also shown goodwill toward China.
(Pictured are RMB and USD)
Argentine officials are considering repaying loans to the International Monetary Fund through a currency swap agreement with China. In October last year, China approved Argentina to expand its currency swap to $6.5 billion. In addition, the Chinese side and the Arab side have extended the term to three years, and the total amount of the agreement has reached $18.2 billion. With limited dollar reserves, Argentina can use the yuan to pay for imports. In addition, you can use RMB to repay debts and avoid defaulting on debts. Argentina has already begun to use the renminbi to settle goods imported from China, and the next space for deepening and expanding financial cooperation will likely become a topic of discussion between the two sides.
(The picture shows the national flag of China and Argentina)
In fact, for Argentina, China is a strong foreign aid to solve economic problems. Therefore, it is difficult for both left-wing and right-wing governments to refuse cooperation with China. China is Argentina's main export market for beef and soybeans, and China has a number of infrastructure investment projects in Argentina. It can be said that cooperation with China can not only help Argentina promote economic reforms, but also alleviate the debt crisis. The fact that they can also generate export revenues, and even create a better environment for Argentina's economic development by upgrading their infrastructure, is probably the main reason Milley seeks to improve relations between the two countries.