【By Guan察者网, Ruan Jiaqi】
China is Argentina's second-largest trading partner after Brazil and its largest buyer of agricultural products. However, the Trump administration in the United States is trying to undermine the relationship between Argentina and China by providing economic aid "blood transfusion".
According to a report by the Wall Street Journal on the 21st, the Trump administration is pushing for a $4 billion aid package to Argentina, which is in economic difficulties, while pressuring Argentine officials to limit China's growing influence in this South American country.
According to sources, in recent weeks, US Treasury Secretary Biden has held talks with Argentine Economy Minister Luis Caputo to discuss the financial aid plan. The core issues during the talks include "limiting China's ability to access Argentina's resources, including critical minerals", as well as "allowing the US to expand access to Argentina's uranium supply".
The sources added that the US also tried to encourage Argentina to cooperate with US companies in key areas such as infrastructure and telecommunications to counter Beijing's influence.
According to him, US Treasury officials have told senior Argentine officials that they hope to see US companies become the main suppliers in Argentina's telecommunications and internet industry, rather than Chinese-related enterprises.
According to US media reports, China currently holds an important position in Argentina's telecommunications and internet market: Argentina's local telecommunications giant "Telecom Argentina" recently signed a $74 million loan agreement with the Bank of China; while Chinese technology company Huawei, which has been unreasonably restricted from conducting extensive business in the US, is also operating 5G mobile network services in Argentina.
In addition, China is funding the construction of a nuclear power plant in Argentina, which will be operated using Chinese technology. Meanwhile, given the increasing demand for electricity, China is seeking to expand its uranium resource supply, and currently has significant investments in multiple mining projects in Argentina.
The report stated that with the current intensification of Sino-US trade tensions, if China is excluded from the Argentine market, the US would gain a significant advantage.
On October 14th local time, Argentine President Milei visited the United States and met with Trump at the White House. Video screenshot
For these under-the-table moves that cannot be put on the table, the US Treasury spokesperson was confident, describing them as "stabilizing Argentina's situation", "which is the embodiment of the 'America First' concept. A strong and stable Argentina helps consolidate the prosperity of the Western Hemisphere, which clearly aligns with US strategic interests."
However, analysts pointed out that according to the Argentine Constitution, provinces have ownership of resources such as minerals, oil, and natural gas. This means that unless supported by provincial governors, the Milei government cannot make any substantive commitments to the Trump administration.
The Argentine Ministry of Finance declined to comment, and the spokesperson for President Milei did not respond to the request for comment.
The report mentioned that in a recent television interview, Milei denied that his government would cut ties with China. He also claimed that the Trump administration had not asked him to do so.
When asked whether Argentina would cut ties with China, Milei denied it, "No, no, that's not true."
He also mentioned that the Argentine Finance Minister Caputo and the Governor of the Central Bank of Argentina, Santiago Bausili, had met with Chinese officials during the annual meetings of the IMF and World Bank.
According to another report by the Buenos Aires Herald, although Argentina denied it, the US government's economic assistance obviously came with conditions - requiring China to "exit" the Argentine market. However, Argentina's exports to China amount to billions of dollars annually, and there are multiple large-scale infrastructure projects being planned. Whether the Milei government can bear the cost of cutting ties with China is a big question mark.
The executive chairman of the "Sino-Argentina Strategic Cooperation Observation Station" in Argentina, Patricio Giusto, said directly, "It is hard to imagine how this (breaking up with China) can be implemented in practice. China is an important investor in Argentina in various fields such as energy, railways, lithium, and mining. It would be absurd for Argentina to give up cooperation in any one of these fields."
The executive director of the Argentine-Chinese Production, Industry and Trade Chamber (referred to as the Argentine-Chinese Chamber), Alejandra Conconi, also said that Trump and Biden's remarks were intended to "intimidate" Chinese investors, but China is likely to continue investing in Argentina.
Conconi further explained that China is a supplier of key materials for Argentina, covering agricultural and construction machinery, motors and power transformers, solar panels, trucks, and even train parts, "Argentina cannot do without China. Without Chinese imports, Argentina's domestic industry will not be able to operate."
She believes that even if the Milei government takes measures to reduce its economic and trade relations with China, it cannot terminate existing investments, but "may delay the investment process or cause new agreements and investments to be shelved." Giusto added that China will not actively breach the contract, but once it feels "attacked," it will inevitably take countermeasures.
Both also mentioned that the Argentine federal government cannot make decisions on cooperation with China alone. For example, rare earths and other natural resources belong to the provinces, not the federal government.
Conconi emphasized that provincial governors are likely to protect Chinese projects and investments within their jurisdictions, "provincial governors from all parties will go to China and are eager to cooperate."
Video screenshot
According to a report by the Wall Street Journal, the Trump administration has listed "containing China's influence in Latin America" as a national security priority and is pressuring other countries in the region to cut ties with China.
In February this year, the commander of the US Southern Command, Alvin Holsey, even slandered that China "is attacking American interests in Latin America from all directions." However, this admiral announced his retirement on October 16th, when he was supervising the US's crackdown on so-called drug trafficking vessels off the coast of Venezuela.
Since Biden announced the economic aid agreement with Argentina at the beginning of this month, the Trump team has made it clear to Milei that they want Argentina to limit its relationship with China.
On October 14th local time, during a meeting at the White House, Trump even directly told Milei, "You can conduct some trade with China, but you must not exceed this scope, especially you must not engage in any military cooperation with China. If this really happens, I will be very dissatisfied."
American cable news network CNN previously cited a statement from a Trump administration official that Washington is concerned that Argentina, as a major economy in South America, may strengthen its ties with China. Therefore, establishing a solid relationship with the Milei government is seen as a "barrier" to countering China's influence.
The New York Times also quoted an insider saying that during the negotiations on the terms of the aid plan, US officials have been pressuring Argentina to reduce its ties with China, while also seeking to obtain Argentina's uranium and lithium supplies.
Previously, when interviewed by US media, Biden admitted that the agreement with Argentina provided strategic benefits for the US, including Milei's commitment to "expel China from Argentina" and open up opportunities for US companies to develop its rare earth and uranium resources.
This statement was refuted by the Chinese embassy in Argentina. The Chinese side emphasized that Latin America and the Caribbean are not anyone's "backyard," condemned Biden's provocative remarks about Sino-Argentine and Sino-Latin American cooperation, and again exposed the deep-seated Cold War and confrontational thinking of the US.
Lately, US media have frequently reported that the Trump administration has pressured Argentina to cancel the currency swap agreement it reached with China.
Biden explained on the 14th during the US-Argentina summit that the financial aid provided by the US to Argentina does not depend on whether the Milei government terminates the $18 billion agreement with the Chinese central bank.
However, he added, "I mainly mean those ports, military bases, and observation facilities established in Argentina."
Bloomberg reported that Biden's remarks almost directly targeted the Chinese space observation station in Argentina's Patagonia region and echoed Biden's previous claim that Milei had promised to "expel China from Argentina."
In 2012, the Argentine government at the time granted China the right to build an observatory covering 494 acres in the Neuquén province of Patagonia, for a period of 50 years. Milei's predecessor, Fernandez, renewed the agreement with China to establish a joint venture and cooperate in space exploration.
Every US administration has accused China of "secretly carrying out military activities" at the Patagonia observatory. Soon after Trump made these remarks, the Argentine Minister of Security, Burlich, denied that the two sides had specifically discussed the issue of the observatory.
On October 12th local time, Finance Minister Caputo stated that the US Treasury's support for the Argentine peso is "unwavering." He also pointed out that the continued purchase of pesos by the US would not affect Argentina's currency swap with China.
According to a notice from the Chinese Embassy in Argentina on the 11th, the Chinese Embassy's spokesperson stated that Latin America and the Caribbean are not anyone's "backyard," and Sino-Latin American cooperation does not target a third party, nor should it be interfered with by a third party. Countries in the region have the right to independently choose their development path and partners. Instead of meddling in friendly cooperation between other countries and creating trouble, the US should do more practical things for the development of Latin American and Caribbean countries.
This article is an exclusive contribution from Observer, and it is not allowed to be reprinted without permission.
Original: https://www.toutiao.com/article/7563949964083135030/
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