Milei’s China promise: When will the visit happen?
Argentinian President Javier Milei has shown that he is prepared to deal with China on friendly terms, even as it aligns with the US, and has said that he will visit China soon. Academic Antonio C. Hsiang takes a look at what this means for Argentina-China relations.
Two right-wing Latin American presidents, Javier Milei of Argentina and Daniel Noboa of Ecuador, were in attendance at US President Donald Trump’s inauguration. Former Brazilian president Jair Bolsonaro, while also invited, was unable to attend because the Supreme Court withheld his passport due to allegations of plotting a coup.
While in Washington, Milei not only met with International Monetary Fund managing director Kristalina Georgieva but was also coincidentally seated in the same row as Chinese Vice-President Han Zheng, President Xi Jinping’s special representative, and Italian Prime Minister Giorgia Meloni. Han and Milei even shook hands and spoke briefly after being introduced by Xie Feng, the Chinese ambassador to the US.
Following the inauguration, Milei travelled to Davos to attend the World Economic Forum, which was held from 20 to 24 January. Since the Spring Festival fell on 29 January, Milei’s plan to visit China in January seemed improbable.
Argentina’s central bank announced on 12 June 2024 that China has agreed to renew the activated part of a major currency swap line for the equivalent of about US$5 billion for a 12-month period, effectively postponing Argentina’s repayment to the People’s Bank of China until July 2026.
In the latter half of September 2024, Infobae reported Milei as having described China as a “very interesting trade partner, because they don’t make any demands, they just ask that you don’t bother them”. He even revealed that he was planning to visit China in January 2025. The reasons behind Milei’s decision to visit China and its impact can be analysed from the three perspectives below.
Geopolitics
BRICS announced its expansion in August 2023. Milei, who took office on 10 December that same year, formally rejected joining the bloc on 29 December, citing inappropriate timing — a move clearly intended to demonstrate loyalty to the US. Through Foreign Minister Diana Mondino, Milei confirmed that Argentina will not be joining BRICS for now, but future membership remains a possibility.
But the perplexing thing is that the Argentine daily newspaper La Prensa dug up old news in January this year, reporting that the space observatory operated by an agency of the Chinese army in Neuquen not only enjoys extraterritorial status but could also have dual military and civilian uses. Despite China’s claims that the observatory’s primary purpose is scientific research, it continues to raise national security concerns in both Argentina and the US.
Observably, Milei’s tolerance of the media suggests his desire to show loyalty to the US.
The report noted that this space station, which China calls the Deep Space Station in Neuquen, cost approximately US$50 million and was built by the China Harbour Engineering Company Ltd. between 2014 and 2017 in the northwestern province of Neuquen. Its legal foundation lies in cooperation agreements signed during the administration of former president Cristina Fernandez de Kirchner.
Also, according to CNN en Español, former commander of US Southern Command, General Laura Richardson, thinks that the station “provides the PLA [People’s Liberation Army] with global space tracking and surveillance capabilities”, which could translate into global military capabilities for China to monitor, track, and target US military assets. Observably, Milei’s tolerance of the media suggests his desire to show loyalty to the US.
... the US government is actively collaborating with development financial institutions, export credit agencies and private companies to support “critical mineral projects”.
Geoeconomics
With mining becoming an important aspect of US-China industrial competition, both countries are intensifying their global industrial mobilisation efforts. Several US government-backed non-governmental organisations are attempting to undermine China’s mining advantage in Latin America and ASEAN countries. For example, in its report “Human Rights and Chinese Business Activities in Latin America”, the Business & Human Rights Resource Centre criticised Jiangxi Ganfeng Lithium’s mining operations in Susques, Jujuy province, Argentina, for allegedly violating the indigenous peoples’ rights to prior consultation, a healthy environment, access water, as well as labour rights. This public opinion has negatively impacted China’s mining development in Latin America and the world.
Last August, Argentine officials and Jose W. Fernandez, under secretary for economic growth, energy and the environment at the US Department of State, held a working meeting and signed a memorandum of understanding on cooperation in critical minerals, indicating that Argentina is part of a US-led critical mineral alliance.
Also, to quickly gain an advantage, the US government is actively collaborating with development financial institutions, export credit agencies and private companies to support “critical mineral projects”. This effort aims to counter China’s investment and trade dominance in minerals vital for high-tech industries, particularly in securing access to these resources.
... because China agreed to renew currency swap tranches worth 35 billion RMB with Argentina, Milei realised that Argentina is unable to break away from its reliance on China and hence promised not to disrupt existing trade agreements with China, including the currency swap deal.
The internationalisation of the renminbi
Following the BRICS summit in Kazan on 22 to 24 October 2024, media reports indicated that discussions took place regarding the creation of a new financial payment platform called BRICS Bridge to counter the SWIFT international payment system and advance the goal of de-dollarisation.
Milei’s decision to reject BRICS membership demonstrates his preference for aligning with the US in international collaborations. However, because China agreed to renew currency swap tranches worth 35 billion RMB with Argentina, Milei realised that Argentina is unable to break away from its reliance on China and hence promised not to disrupt existing trade agreements with China, including the currency swap deal.
Despite challenges posed by Argentina’s exchange control policies on capital injection and equipment procurement for Chinese companies, China Export & Credit Insurance Corporation (SINOSURE) successfully finalised financing for its first insured solar-plus-storage project in Argentina on 15 January. As the largest off-grid solar-plus-storage project under construction in the country, it showcases an innovative financing model and signifies SINOSURE’s substantial contribution to the development of the Belt and Road Initiative.
China’s Ganfeng Lithium, a global leader in lithium, has also invested in high-quality lithium brine projects in Argentina, ensuring a robust supply of upstream raw materials to maintain its leading market position. SINOSURE facilitated these projects by offering innovative RMB financing solutions through its core policy product, export buyer’s credit insurance, and establishing an effective RMB financing model for Chinese companies expanding internationally.
On 22 January, while attending the World Economic Forum for the second time, Milei was asked in an interview about his shift in attitude towards China since taking office. He replied, “Well, sometimes one has to learn… Well, if I don’t learn, I hurt Argentines. I have extra pressure to learn fast.” His administration faces a steep learning curve.
