Argentina and China signed last February a memorandum of understanding within the framework of the Belt and Road Initiative.
This initiative aims to boost cooperation and connectivity between the countries through land and ocean routes.
The initiative seeks to develop a platform to stimulate trade and investment, market integration and economic cooperation between the regions.
In the medium term, the memorandum aims to boost bilateral trade in goods and services, and increase investments for the productive sector and for the development of technological capabilities.
Belt and Road Initiative
Under the memorandum, financing for strategic infrastructure works in Argentina will consist of two tranches: one for projects agreed at the fifth meeting of the Strategic Dialogue for Economic Cooperation and Coordination (DECCE) held in January 2022, which has already been approved, and a second tranche for projects that Argentina plans to present to the ad hoc group to be created between the two countries under the memorandum.
In addition to the memorandum on the Belt and Road Initiative, the two nations signed 13 different inter-institutional cooperation documents related to different subjects, including green development, digital economy, space development, technology and innovation, education and university cooperation, agriculture, earth sciences, public media and nuclear energy.
Imports and exports
China is one of Argentina’s main trading partners. Imports from China include mainly chemicals, machinery and electronic devices, motorcycles and small cylinder volume engines, and toys.
Conversely, exports to China include mainly agricultural products, such as wheat, soybeans and corn, as well as meat and meat products.
In 2021, imports from China included mostly intermediate goods, which totaled $4.6 billion, capital goods, which totaled $4.3 billion, and spare parts and accessories, which totaled $2.7 billion.
Exports to China in 2021 were mainly primary products for US$3.2 billion, followed by manufactured products of agricultural origin, which totaled US$2.8 billion.
In 2021, Argentina’s trade deficit with China was $7.2 billion, up from $3.3 billion in 2020.