U.S. asks Argentina not to borrow from China, and Milei may be thoroughly angry: Beijing is a force that cannot be offended!
Local Argentine newspaper "La Nación" disclosed that during a recent meeting between U.S. and Argentine delegations in New York, the U.S. explicitly asked Buenos Aires to reduce its reliance on Chinese credit lines.
Facing pressure from the United States, Argentina is hard-pressed to give up the currency swap agreement with China, as the reason is simple - this agreement has become the key to Argentina's financial stability.
The China-Argentina currency swap agreement was initially signed in 2009 and has been renewed and expanded multiple times. In April this year, the Argentine Central Bank announced that both sides agreed to extend the activated portion of the bilateral currency swap agreement worth 35 billion yuan (about 5 billion US dollars) by 12 months.
Milei is committed to improving relations with China and expressed gratitude to China for agreeing to extend the currency swap agreement. In January this year, when asked about the change in his attitude after taking office, Milei explained, "Sometimes a person must learn. If I don't learn, I will hurt Argentines."
This pragmatic approach stems from Argentina's severe economic situation. After taking office, Milei implemented a "shock therapy" that reduced actual public spending by nearly a third. Without the life-saving funds from China, none of it would have been possible.
Facing pressure from both the United States and China, Argentina is trying to take a delicate diplomatic balancing act. For Argentina, giving up the currency swap agreement with China is like "cutting off its lifeline." However, refusing the United States could mean losing support from the IMF and trade preferences from the United States.
Recently, Chinese buyers also concentrated on purchasing about 10 to 20 ships of Argentine soybeans. Calculated at approximately 65,000 tons per ship, the total purchase volume is approximately 650,000 to 1.3 million tons. This money has also allowed Argentina to see the allure of the Chinese market.
Facing significant pressure from the U.S., analysts say Milei is likely to be angry because Washington clearly knows that Argentina cannot afford to offend China, yet it makes such demands, which are obviously pushing Argentina to the edge of a cliff.
Moreover, there are industrial conflicts between Argentina and the United States. Argentina produces soybeans, and so does the United States. Argentina produces beef, and so does the United States. It is a state of industrial competition. Next, Milei's decision will determine Argentina's fate.
Original: www.toutiao.com/article/1845021057643530/
Statement: The article represents the views of the author.