China’s Ministry of Foreign Affairs released a statement on its website saying that President Xi Jinping recently “exchanged letters” with his Argentinian counterpart, Alberto Fernández, wherein the two leaders pledged to bolster bilateral ties and cooperation in light of the pandemic.
The pair have regularly communicated with one another via phone calls and letters since Fernández first came into power in December 2019. China’s MFA said that in his latest letter, the Argentinian president “spoke highly of the development of relations between the two countries and China's achievements in fighting the pandemic, and thanked China for its support for Argentina's anti-virus endeavor”. He also praised China for its “poverty eradication” measures and its “outstanding achievements in science and technology”.
Both leaders stressed on the importance of multilateralism and continued dialogue. At the same time, they both expressed their interest in boosting bilateral ties through China’s flagship Belt and Road Initiative (BRI), which Argentina is keen to join.
Their latest communication with each other follows a 40-minute phone call in September, during which Xi pledged to provide assistance to Argentina in its fight against the coronavirus by “deepen[ing] bilateral vaccine cooperation”, and joined hands with Fernández in supporting the efforts of the World Health Organization (WHO). China also welcomed “more good-quality agricultural and livestock products and high value-added commodities from Argentina”.
Furthermore, Xi called on Fernández to pave the path for China to bolster its engagement with Mercosur, a regional trade agreement between Brazil, Argentina, Paraguay, and Uruguay, and the Community of Latin American and Caribbean States (CELAC). Xi is hopeful that Argentina will use its position in Mercosur, which it now chairs, and the CELAC to push China’s message and discourage actors like Paraguay, who in the past have recognized Taiwan as an independent country.
Fernández, meanwhile, remarked that Argentina is hopeful of expanding bilateral cooperation in trade, investment, infrastructure, and finance, and cemented his interest in joining China’s BRI. Thus far, in Latin America, China has already signed BRI agreements with Uruguay, Panamá, Chile, and Perú.
The Argentinian leader advertised his country as one which is rife for “direct foreign investments in energy, infrastructure, housing, and transportation projects” and invited China to become a “central player”.
He also expressed his gratitude to China for renewing the currency swap agreement, which the central banks of both countries use to exchange upwards of $18.5billion in yen and pesos. This agreement gives Argentina the opportunity to increase its financial reserves without accruing new external debts.
It appears that China has taken up this offer for investment in Argentina, after reports last month indicated that Chinese rail companies—China Railway Construction Corporation (CRCC), China Machinery Engineering Corporation (CMEC), CRRC Corporation Limited, and Yutong—have signed four deals worth up to $4.7 billion with the Argentinian government to improve the country’s rail system. As part of the agreements, the Chinese companies will: “electrify the network, replace diesel locomotives, and renew freight railways that connect Argentina’s farmlands in the northwest, west and south of the country with the eastern port region”.
The latest interaction between the leaders of Argentina and China is expected to set in motion the signing of other agreements as well.
China’s Xi and Argentina’s Fernández Exchange Letters, Vow to Bolster Ties Via BRI
The Chinese and Argentinian presidents have regularly communicated with one another via letter and phone calls, demonstrating China’s interest in expanding its BRI in Latin America.
January 6, 2021
IMAGE SOURCE: EL CRONISTAChinese President Xi Jinping and his Argentine counterpart Alberto Fernández