Tag Archive for: Chinese Investments

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What does joining the Asian Infrastructure Investment Bank imply for Argentina?

Since 2021, Argentina officially integrates the Asian Infrastructure Investment Bank. For our country, the AIIB represents a new multilateral source of financing for strategic sectors such as infrastructure, energy, telecommunications and transportation, among others. However, the AIIB is a little-known bank. How does it work and what are the implications for the country of joining this institution promoted mainly by China? We present a new report with the analysis.

Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.

On March 30, 2021, Argentina’s membership of the Asian Infrastructure Investment Bank (AIIB) was made official. The AIIB officially began its activity in October 2014. It is a new multilateral development bank promoted mainly by China with a focus on investments in infrastructure, especially aimed at emerging countries. Its Asian origin does not limit its actions to a single region, since the Bank has a large number of member countries in other continents and projects financed in South America, Africa and Europe.

The model proposed by China has distinctive features. The dominant feature is that the investments are focused on infrastructure, connectivity and industrialization, marking an important difference with Western development financing entities that, in recent times, have oriented their loans mainly to institutional reforms, health projects, education or fighting against poverty, among others.
In this way, it postulates an interesting alternative for the financing of an infrastructure that is largely in deficit in Latin America and, particularly, in Argentina. For our country, the AIIB represents a new multilateral source of financing for strategic sectors and opens an opportunity to help solve its historical deficits in terms of infrastructure and connectivity. For its part, with still little participation from Latin America, the Asian Bank is consolidating itself as a viable option for the region in light of development goals. To date, five effective Latin American members are reported: Argentina, Brazil, Uruguay, Ecuador and Chile.

From its origins, the AIIB was presented as a different option to the historical Western multilateral development institutions such as the World Bank, the IDB or the International Finance Corporation (IFC). However, the AIIB has implemented a regulatory and operational framework very similar to that of those institutions, including policies for access to information, accountability, and environmental and social regulation to authorize disbursements. In turn, it contemplates cooperation and co-financing with other multilateral banks, such as the World Bank and the Asian Development Bank, adhering to their regulatory frameworks.

Despite this, since its entry into operations the Bank has received criticism from various sectors of civil society and affected communities that have questioned its actions in different development projects and even certain weaknesses in its regulatory framework.

In this sense, the implications that admission to the AIIB may have for Argentina depend largely on the type of relationship that the country establishes with the institution and the way in which it manages to take advantage of the potential financing resources for infrastructure that the Bank can provide. . Likewise, it is necessary to avoid repeating the problems related to public participation, access to information and socio-environmental impacts that have historically been associated with development projects financed by multilateral banks.

Given the general ignorance that exists in the country about this institution, it is important to analyze in depth what the Bank consists of, how it works and what the true implications of Argentine membership may be. To contribute to this objective, from Fundeps we present a report that analyzes part of these questions.

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The incorporation of Argentina to the Asian Infrastructure Investment Bank – Fundeps was approved
Argentina, one step away from becoming a member of the Asian Infrastructure Investment Bank – Fundeps
Are the brothers united? Profiling of the Sino-Argentine relationship in the government of Alberto Fernández – Fundeps
The role of the AIIB in the New Green Silk Road – Fundeps

Author

Camila Victoria Bocco

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Access to information on projects with Chinese financing

Within the framework of the day of access to public information, we presented the document “Access to Information in Argentina. Difficulties and lessons learned accessing information on infrastructure and energy projects with Chinese financing in the country ”.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The People’s Republic of China is the second world economy, with great relevance in international trade and financing and the provision of direct foreign investment, being Latin America, and in particular Argentina, one of the largest recipients of investments in infrastructure of Chinese origin .

Despite this, one of the main challenges that arise when analyzing the growing Chinese financing of projects both in the region and in Argentina, is the lack of transparency and the difficulty in being able to access detailed, accurate and official information about of these projects. Thus, in many cases, the scant information available about the investment amounts, the actors involved, the financing conditions or even the particularities of the projects, make it difficult to carry out a detailed follow-up and monitoring of them and even their impacts. and implications for the country or region where it is carried out.

At the same time, the evaluation of China’s compliance with the principles enshrined in the Universal Declaration of Human Rights carried out by the United Nations in the framework of the Universal Periodic Review (UPR) shows that many development and infrastructure projects of Chinese companies are not compatible with human rights, nor respectful with the environment and the sustainability of natural resources, causing impacts not only economic but also social, environmental and cultural. Hence, the information on these projects must necessarily be transparent and provided in a timely and efficient manner, especially to those communities and populations that are affected by them.

Starting from this panorama, this publication seeks to identify difficulties and lessons learned from the practical experience of accessing information on infrastructure and energy projects with Chinese financing in Argentina. For this purpose, a series of requests for information were made within the framework of the Law on Access to Public Information No. 27,275 in force in the country. Likewise, the experience of access to information from state and non-state sources was evaluated, mainly portals and journalistic media that focus on Sino-Argentine ties.

Based on the identification of some of these existing difficulties when accessing information on the subject, reflections and lessons learned are provided that feed a list of recommendations aimed at strengthening the right of access to information in Argentina.
Transparency and correct and timely access to information are presented as key elements to better understand the growing participation of China in the financing of infrastructure and energy projects in our country. Precisely, access to information, transparency and infrastructure projects should go hand in hand if you want to achieve sustainable and quality infrastructure.

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Contact

  • Gonzalo Roza, gon.roza@fundeps.org

Access to information on projects with Chinese financing

This report seeks to identify difficulties and lessons learned from practical experience accessing information on infrastructure and energy projects with Chinese financing in Argentina.

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Negotiations between Argentina and China continue for the construction of Atucha III

Argentina and China are advancing in the negotiations for the construction of Atucha III, the fourth nuclear power plant in our country, with Chinese technology and financing. US officials expressed their concern to the President of the Nation on a recent visit.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The Ambassador of Argentina in China, Sabino Vaca Narvaja, the Secretary of Energy of the Nation, Darío Martinez, and the director of Nucleoeléctrica Argentina, Isidro Baschar, held, on April 6, a meeting with the directors of the National Agency for Energía de China (NEA) and the China Nuclear Corporation (CNNC), in which they agreed to boost negotiations for the construction of the fourth nuclear power plant in Argentina.

The representatives of Argentina and China reviewed the status of the negotiations for the construction of the nuclear power plant in our country with Chinese technology. In addition, they explored the possibility of expanding the bilateral link in other areas of cooperation, such as the Argentine export of services and components for Chinese nuclear projects and the life extension of nuclear power plants in China.

The Secretary of Energy, Darío Martinez, affirmed that “the project of the IV Nuclear Power Plant has the full support of the President of the Nation and is on the list of priority projects between both countries.” Likewise, Sabino Vaca Narvaja explained that “Argentina has a highly developed platform in the nuclear sector with its own developments and a unique scientific base in the region. Achieving our fourth nuclear power plant, in addition to expanding our energy sovereignty, will place us at the forefront of a sector with historical development in our country ”.

For his part, the Deputy Director of the Department of Nuclear Energy of NEA, Qin Zhijun, stressed the importance of nuclear energy in the Chinese development strategy, in particular, considering the need to have a diversified energy matrix, as well as the importance of nuclear energy in the fight against climate change.

Worry in Washington

On April 14, two high-ranking officials of the United States government arrived in Argentina. The Director for the Western Hemisphere of the National Security Council, Juan Gonzalez, and the Acting Undersecretary of the State Department for Western Hemisphere Affairs, Julie Chung, shared a lunch with the President of the Nation, Alberto Fernandez at Quinta de Olivos . Also, in the evening, they shared a dinner with the President of the National Chamber of Deputies, Sergio Massa.

Joe Biden’s government officials asked the Argentine government for “prudence” in relation to China. Likewise, they expressed their concern about the project for the construction of the Atucha III nuclear power plant, with financing and technology from China.

The concern on the part of the United States in the construction of the nuclear power plant with technology and financing from China reflects that Argentina is not exempt from the current political dynamics characterized by competition between the two giants.

Atucha III, the fourth nuclear power plant in the country

The construction of this project is scheduled to be located at the Atucha Nuclear Complex, located in Lima, Zárate district, about 100 km from the City of Buenos Aires. In this same complex are the Atucha I and II nuclear power plants.

According to Nucleoeléctrica Argentina S.A, the negotiations contemplate that the reactor to be built in the new plant is a Hualong HPR1000 Pressurized Water Reactor (PWR) of Chinese origin. How do these reactors work? Basically they use enriched uranium as a source of heat (thermal energy), which is transported by high pressure water to a steam generator, which in turn converts that water into steam that drives an electricity generating turbine. This is the type of reactor most used in the world for electricity generation.

With regard to risks, NASA assures that “the safety levels of the Hualong reactor are significantly high and the risks of delay during construction are reduced.”

This new plant would be capable of generating 1200 MWe of gross energy. To put this in perspective, the Atucha I, Atucha II and Embalse reactors generate 362 MWe, 745 MWe and 656 MWe respectively.

Given the characteristics of the project in question, the type of energy to be used, the controversy regarding the technology to be used and its impact on the external positioning of the Argentine Republic in a context of dispute between the United States and China, from Fundeps we propose the need to that the national State faces the negotiation process in a transparent way and provides a broad framework for debate within Argentine society regarding the project and the use of atomic energy.

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Authors
  • Mariano Camoletto
  • Andres Paratz
Contact

Gonzalo Roza, gon.roza@fundeps.org

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Argentina seeks to agree with China an investment plan for 30 billion dollars

On the eve of the next trip to China, the Argentine government negotiates infrastructure investment agreements worth close to 30 billion dollars.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”

The President of Argentina, Alberto Fernández, will visit the President of China, Xi Jinping, on May 5. One of the backbones of the meeting will be the negotiations for the entry of the South American nation to the Silk Road project and the landing of 5G technology from the hand of Huawei. In addition, it is expected that other important agreements for the bilateral relationship will be discussed, such as the expansion of the Caucharí solar energy park in Jujuy, infrastructure projects, livestock, investments and financing.

After a 2020 characterized by the health and economic crisis caused by the covid-19 pandemic, the Argentine government advances in investment agreements with China for a value close to 30 billion dollars. Argentina has 15 infrastructure projects on the list to present to China. These agreements are of great importance for the national government, mainly in view of the necessary reactivation of the Argentine economy.

The projects that Argentina prioritizes for investment from China are the rehabilitation plan of the San Martín Railway system, improvements to the Roca Railway line, infrastructure works on the Miter and Urquiza railway, the redefinition of the Belgrano Cargas railway network and the incorporation of rolling stock for passengers. In parallel, the installation of smart pig farms is being discussed. It is estimated that the value of the investment would be around 3.8 billion dollars for a period of four years, in addition to the objective of producing 882 thousand tons of meat for a value of 2.5 billion dollars.

Likewise, the landing of Chinese investments in mining is discussed, especially in the production of copper and lithium in northern Argentina. Regarding lithium, Argentina signed an agreement with Jiangsu Jiankang Automobile (JJA) for the production of vehicles and batteries in the country. The list of projects includes the remodeling of the Chaco-Corrientes bridge, the construction of an aqueduct and water treatment plants, road corridors and the development of a logistics hub in Tierra del Fuego.

Regarding investments in energy, the president has in his portfolio five main works that require large investments that he will request from the Asian giant. This plan prepared by the Secretary of Energy, Darío Martinez, and the Minister of Economy, Martín Guzmán, stands out for the non-inclusion of one of the most demanded works by China: the construction of the fourth nuclear power plant in the country with Chinese technology . This works plan includes the construction of the southern gas pipeline, the electric grid in AMBA, the electric grid in Patagonia, the Mesopotamia pipeline and the construction of a thermal power plant.

The construction of the fourth nuclear power plant began to take shape during the government of Cristina Fernández for a value of 12 billion dollars. With Mauricio Macri in power, the cost was lowered to 9 billion. However, with the economic crisis and Macri’s electoral defeat, the project came to a standstill. The arrival of Alberto Fernandez meant for China the possibility of discussing the realization of the project. Another work that does not appear in this plan is the construction of the Chihuido hydroelectric dam in Neuquén. This work claimed by Russia and China would remain in the hands of Germany.

One year after the start of the pandemic in Argentina and the measures that have been adopted to act accordingly, the link with China has deepened. The Chinese market has become the main destination for beef exports from Argentina. Bilateral trade between the two countries, which in 2000 was around 2 billion dollars, closed in 2019 at a value close to 16.3 billion dollars, with Argentine exports for 7 billion dollars and imports for 9 billion dollars. of dollars. In addition, the Argentine government closed an agreement with the pharmaceutical company Sinopharm in early February for the shipment of 1 million doses and the arrival of another 3 million doses is expected at the end of March.

This new boost to the relationship with China is expected to be strategic, commercially balanced and accompanied by the necessary responsibility in environmental and social matters.

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Author

Mariano Camoletto

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Nuclear cooperation between Argentina and China advances

In November, the Argentine government plans to move forward with the signing of the contract for the construction of the fourth Hualong-type nuclear power plant, with Chinese financing.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The government of Alberto Fernández advances in the signing of the contract for the fourth nuclear power plant with the Asian giant. The preliminary agreements signed in 2014 and 2015 included the construction of two nuclear reactors. One of the reactors would be made of Candu-type natural uranium, a technology that Argentina handles, and the other reactor would be Hualong-type enriched uranium, of Chinese origin.

However, in the Macri government modifications were made to the agreements with China and in 2018 it was decided to build only the Hualong-type reactor, a model that is planned to be built in this administration. This type of reactor will require an investment of USD 8 billion and for this Argentina will have to import the fuel for the plant to function, which implies that the country depends on foreign suppliers. Several specialists such as José Luis Antúnez, Andrés Kreiner, Gabriel Barceló and Eduardo Barreiro are against this type of reactor and insist on the need to continue with the natural uranium technology that uses the Candu model.

On the other hand, proponents of the construction of the Hualong reactor such as Sabino Vaca Narvaja and Isidro Baschar see its construction as a smart partnership with China that will help strengthen national development. Also, they are negotiating the possibility of the country producing the nuclear fuel that this reactor model needs and thus avoiding dependence on foreign suppliers. In addition, they highlighted that the plant will have a Chinese loan of USD 7,900 million that will begin to be paid when the reactor generates electricity, that is, in 8 years. Regarding the cancellation of the construction of the Candu reactor, Vaca Narvaja and Baschar argued that the Ministry of Energy is working to reactivate it.

Regarding the choice to build nuclear power plants instead of opting for renewable energies such as wind and solar, it raises concern not only because of the higher construction cost but also because of the risks that nuclear energy implies. Detractors of the Hualong nuclear power plant maintain that it would not even be useful to develop the scientific-technological system, that if it occurs in other types of reactors such as the Candu.

The moment chosen to advance in the construction of the nuclear power plant is also questioned since, due to the context of the economic crisis and the restructuring of the debt in which Argentina finds itself, it would not be opportune to take on debt nor is energy necessary nuclear since at present the country has no deficit in energy production.

It should be noted that the commitment to greater nuclear development is closely linked to the type of energy matrix and the development model promoted by the country. In turn, it involves and affects, directly or indirectly, a wide variety of actors. Therefore, from Fundeps we consider that this type of decision should necessarily include a deep debate at the social level, with the necessary transparency and participation of the different social actors involved. Unfortunately this does not appear to be the case.

Author

Sofia Brocanelli

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Argentina, one step away from becoming a member of the Asian Infrastructure Investment Bank

Unanimously, on September 3, the Argentine Senate approved the entry of our country to the Asian Infrastructure Investment Bank -AIIB, for its acronym in English-. All that remains is the vote of the Chamber of Deputies to make the incorporation effective.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

Argentina is one step away from becoming a member of the Asian Infrastructure Investment Bank -AIIB- since by means of a unanimous vote, 69 affirmative votes, the Argentine Senate approved the entrance of our country to the institution. Now the Chamber of Deputies needs to deal with the entry project.

Argentina’s intention to be part of the Bank dates back to the administration of Mauricio Macri, where in the first ‘One Strip and One Route for International Cooperation’ Forum held in 2017, he affirmed the country’s intention to be part of the AIIB. That same year, the AIIB Board of Directors approved Argentina’s entry into the institution.

From the region, Ecuador and Uruguay are already members of the AIIB. On the other hand, Bolivia, Chile, Peru, Venezuela and Brazil have requested access to the organization. The Senate of the latter also approved his entry, however he joined as a founding member because he is part of the BRICS and all the founding countries of this bloc enjoy that status.

The AIIB was born in 2015 at the initiative of China, but began operating in January 2016. It currently has 102 members from different regions of the world. It is a multilateral financial institution that, through investments in infrastructure, fosters sustainable economic development, creates wealth, and improves connectivity in infrastructure, promoting regional cooperation with multilateral and bilateral development institutions. The Bank’s strategy is based on the Lean, Clean and Green concept in which it seeks to be efficient, agile, ethical and respectful of the environment and social rights. In addition, the financing to the countries is carried out through public capital and private investments and its financial operations are based on granting credits, guarantees and participations.

Since it began operations, the AIIB has already financed 138 infrastructure projects, between completed projects and projects in progress. In addition, the agency’s invested capital reaches $ 31 billion, which includes approved and requested projects. The sectors in which this organization invests are energy, transportation, telecommunications, infrastructure in rural areas, agricultural development, urban development, water supply, health services, environmental protection, logistics, among others.

Joining the AIIB gives our country the possibility of accessing financing from a new multilateral organization for infrastructure works in the energy sector, transportation and urban reforms, for example. Also, SMEs and other productive sectors could access Bank financing. Finally, another point to note is that this organization provides loans at low interest rates and without economic and political conditions, unlike traditional multilateral organizations such as the IMF.

Also, the bill approved by the Senate enables the Central Bank to access up to 50 capital shares, with a value of 100,000 dollars each, according to the registration admitted by the AIIB for the incorporation of a member country. A part of these shares, specifically 40, correspond to the callable capital and the remaining shares correspond to the capital to be integrated.

The strengthening of the relationship between our country and the People’s Republic of China is intensifying and among its causes, in addition to the partial approval of Argentina’s admission to the AIIB, there is also the strengthening of the Comprehensive Strategic Association with the Asian country, the donation and provision of health supplies in the fight against Covid-19, the progress to test the Chinese vaccine in the Argentine population and the negotiations that are being carried out to make effective the entry of Argentina to the Initiative of the Route and the Silk and the construction of the fourth atomic power station. Therefore, an even stronger tightening of cooperation between the two countries is expected.

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Argentina-China: cooperate in adverse times

While cooperation as an interstate link has suffered among most countries, in the framework of the Covid-19 pandemic China and Argentina have chosen to cooperate in health matters.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

During the Covid-19 pandemic and the validity of social, preventive and compulsory isolation (ASPO), various cooperation actions were carried out in health matters between the People’s Republic of China and the Argentine Republic. In order to mitigate the adverse effects caused by the pandemic, China has cooperated with Argentina in both the public and private spheres to strengthen the national health system.

Regarding the public sphere, the cooperation emphasized donations and purchases of sanitary elements, at the national and sub-national level. In this sense, the province of Buenos Aires imported from China, for a value of 54 million dollars, 5.5 million disposable chinstraps, 300 thousand N90 chinstraps, 83 thousand goggles, 700 thousand face masks and 12 million pairs of gloves disposable. To this end, Aerolineas Argentinas carried out 32 flights to the city of Shanghai at a cost of $ 500,000 each. In the act in which the tightening of the quarantine in the Metropolitan Area of ​​Buenos Aires (AMBA) was announced, on June 26, Governor Axel Kicillof affirmed that “28 planes with sanitary supplies for his province had arrived in the country from from China”.

At the subnational level, the Chinese province of Guizhou donated medical supplies to the province of Jujuy, including a total of 9 thousand medical masks donated by the People’s Hospital of said province of China. Since 2017, both provinces have maintained a fraternal relationship within the framework of the twinning intention agreement to improve understanding, foster friendship, consolidate and develop friendly cooperation.

Likewise, the All China National Association of Journalists donated 200,000 masks to the Union of Press Workers of Buenos Aires to be delivered to union members. In this sense, Secretary General Lidia Fagale expressed that one of the central premises in the international arena of the Chinese press entity is the “deep sense of cooperation.” He also thanked “the solidary attitude of the colleagues and their repeated signs of commitment in strengthening the bilateral bond.”

On the other hand, the Ministry of Foreign Affairs, International Trade and Worship informed Fundeps, in response to a request for information made on June 30, that the Argentine Republic and the People’s Republic of China have maintained fluid contact within the framework of the fight against the Covid-19 pandemic through videoconferences; and that Chinese President Xi Jinping expressed his strong support for the measures taken by Argentina in relation to the pandemic.

The Foreign Ministry detailed that the following measures were carried out: first, negotiations were carried out through the Embassy of Argentina in China and the Consulate General and Promotion Center in Shanghai for the pertinent permits for the overflight and landing of aircraft of Aerolineas Argentinas to Shanghai in search of medical supplies, as well as the displacement of people. Secondly, the White Helmets Commission advised on the documentary procedures related to the donation of goods from abroad so that they comply with the customs regulations in force in our country.

On the other hand, the Foreign Ministry made it known that the cooperation between both countries is multi-level since it includes subnational entities, companies, institutions and other entities, which have made donations and sent supplies to various actors in our country. Within the donations and shipment of supplies are detailed: chinstraps, protective suits, protective glasses, detection tests, gloves, protection for footwear, among others.

These were assigned to the Ministry of Health, Defense, Security, provincial ministries and municipalities. In this way, the bilateral cooperation in health matters between Argentina and China reflects the growing interaction and linkage between both countries, in areas that are not only limited to trade and investment but also include a wide range of areas, such as academic, cultural , technological, health or scientific, among others. The aforementioned request made to the Argentine Foreign Ministry is part of a set of requests recently sent by Fundeps to different agencies of the national government requesting information regarding various aspects of Sino-Argentine relations and infrastructure and energy projects that have Chinese financing. In this sense, it should be noted that effective and timely access to public information is essential even in a context like the current one, marked by the pandemic.

Authors
Florence Harmitton
Mariano Camoletto
Contact
Gonzalo Roza, gon.roza@fundeps.org
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Analysis of the Second Plan Joint Action between Argentina and China (2019-2023)

The following document describes and analyzes the Second Joint Action Plan agreed between Argentina and China (2019-2023) at the G20 summit in 2018. This Plan reinforces the comprehensive strategic partnership between both States and details the actions that will be carried out carried out in different areas such as politics, trade, culture, finance, communications, among others.

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Status of the emblematic projects with Chinese financing in Argentina

China’s growing interest in financing infrastructure projects in the region has led Argentina to sign a multiplicity of cooperation agreements with this country. For this reason, we have identified a series of projects with Chinese financing which we believe are relevant for their magnitude and for the economic, social and environmental impacts they can generate. Thus, in this document, the status of the situation, amounts committed and actors involved in the selected projects considered emblematic are detailed (only spanish).

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The Role of Latin America in the Belt and Road Initiative

The objective of this document is to analyze the strategy, objectives and political motivations of the People’s Republic of China in Latin America and the Caribbean. This analysis seeks to complement the previous analysis carried out by the Regional Group on Financing and Infrastructure (GREFI) based on the Asian giant’s commercial and investment strategy in LAC, which led to the publication of “General Overview of Chinese Investments in America Latina: The cases of Argentina, Colombia, Mexico and Peru ”in 2016. The document analyzes the Chinese political strategy in LAC by analyzing the relationship framework in certain multilateral and bilateral spaces in which China is present in the Region and in which it even exercises a leadership role. And special emphasis is placed on the Belt and Road Initiative promoted by China, and the role that the LAC region has to play in it. (Only in Spanish)

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Brothers be united? Profiling of the Sino-Argentina relationship in the government of Alberto Fernández

After the Mauricio Macri government will use the acquisition of debt with multilateral credit organizations as the main source of financing for its management, prioritizing the relationship with the International Monetary Fund and the United States government, it is prudent to ask ourselves: What has been the China’s role in this scenario? How is the relationship with the Asian giant outlined in the new government of Alberto Fernández?

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

Since the consolidation of China as an influential player in the international system and one of the main economic powers, Argentina has had a relationship with ups and downs but in constant communication. The use of China as a counterweight actor against the constant influence of the United States is not a strategy used only by Argentina, but also by most of the countries in the region.

In this geopolitical scenario, China presents itself as an actor that cannot be ignored beyond the efforts of the West. However, the Mauricio Macri government slightly changed the trend that had been prevailing during the Cristina Fernández government, which could be described as almost preferential.

During the Macri government, relations with China have gone from having a strong bond to going through some ups and downs, since the beginning of the administration, the closest approach to the United States tended to a distance with China. This was reflected in the reconsideration of agreements previously signed during the previous government, which implied a pause in several projects. The guiding idea of ​​the foreign policy of the then President Mauricio Macri was “the reintegration of Argentina in the world” which involved giving a more relevant role to multilateralism. From there, the various international tours and the search for support in the world produced a departure with the Chinese giant with whom he had a very deep strategic cooperation agreement.

Faced with the exhaustion of international credit and the inevitability of the link with China, in the middle of his term, Macri resumed the dialogue interrupted for two years and continued with the stage of deepening the strategic cooperation proposed by the Fernández de Kirchner government, with the Holding of the G20 Summit in Argentina and new modified cooperation agreements were signed. By the end of the term, the relationship had already been fully resumed, which was evidenced in Argentina’s attendance at China’s main initiative in Latin America in the Strip and the route, and 16 cooperation agreements were signed between the two countries. Finally, in June 2017 Argentina is outlined as a potential non-regional member to the Asian Investment and Infrastructure Bank -AIIB- along with other Latin American States, in order to find financing for the country’s large public infrastructure works such as dams in Patagonia .

In this context, the government receives President Alberto Fernández, who is also going through an exceptional situation of public health emergency due to the COVID-19 pandemic. The truth is that, months after his administration began, Fernández had to decide who would be the Argentine ambassador to China, a decision that would indicate the course of action of foreign policy with the Asian country. Fernández’s decision was innovative since he appointed Luis María Kreckler, a career diplomat with a career in embassies such as Brazil and Germany, as Argentine ambassador to China and as political advisor to the embassy along with Sabino Vaca Narvaja, renowned political scientist of the Program of Sino-Argentine Cooperation and Linking from the National University of Lanús and academic specialist on China.

From this designation it is observed that the Fernández government seeks a balance in the relationship with China, that is, the maintenance of a strategic association with the Asian giant but without reaching full dependence. The appointment of a diplomat with a career as Kreckler may imply prudence when proposing a foreign policy strategy that generates an international balance of political interests that may be presented by political scientist Vaca Narvaja.

For his part, President Fernández has declared that China’s role in the global order is inescapable and that during his term he will seek to deepen the Comprehensive Strategic Association that could be extended to the Belt and Road Initiative.

For the moment, the incipient government of Alberto Fernández, which has barely gone through 100 days of administration, has already had to manage a national health emergency crisis by COVID-19, and an economic emergency due to the still pending negotiation with the IMF. . In this context, everything that does not qualify as an emergency is automatically displaced from the government’s priorities. However, the relationship with the Asian giant has been strengthened with the donation of medical supplies from the Chinese government to Argentina in the framework of the bi-national cooperation established in the face of the COVID-19 pandemic.

Likewise, when it comes to the People’s Republic of China, it is recognized that the symbolic has the same relevance as the economic. For what no less data has been the message contained in the input boxes from China where the famous quote by Martín Fierro written by José Hernández was found: «The brothers be united because that is the first law. Have true union at any time. « Although nuances can be expected in the relationship with the Asian giant, one thing is certain, the Alberto Fernández government is determined to strengthen the bilateral relationship, so we must wait to know at what cost it will be.

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Author

  • Florencia Harmitton

Contact