Argentina joins the Chinese initiative of the Silk Road

President Argentinian Alberto Fernández met on Sunday in Beijing with his Chinese counterpart Xi Jinping and signed agreements for the incorporation of the South American country into the initiative China of the Strip and the Silk Road and that involves financing from the Asian nation for US $ 23,700 million, it was officially reported.

Fernández, who is visiting China in the framework of the opening of the Winter Olympic Games, held a “cordial, friendly and fruitful” meeting with his Chinese colleague, in which Argentina’s entry was sealed as one of the more than 140 countries to the Strip and the Silk Road, a Chinese diplomatic initiative to expand its strategic influence in the world, through the promotion of trade, the integration of markets, financing and multi-million dollar investments of the Asian giant.

Argentina is the first large country in Latin America to join the Strip. Fernández is one of the two Latin American leaders who attended the opening of the Winter Games, along with the president of Ecuador, Guillermo Lasso.

A statement from the Argentine Presidency details that with the agreements signed by both leaders, the South American nation will receive financing in two tranches, an initial one of US $ 14,000 million divided into ten infrastructure projects and another 9,700 additional within the mechanism to join the Strip and the Silk Road.

China also expressed its support for Argentina in its “efforts to preserve economic and financial stability” and promised to “encourage greater use of national currencies in trade and investment and make it easier for companies from both countries to lower the costs and the reduction of foreign exchange risk,” according to the statement.

It adds that “foreign investment from China in Argentina” will be promoted in strategic sectors such as energy and electromobility and the exports of the South American country. “Work will be done to expand the participation of Argentine suppliers in infrastructure works and sanitary and phytosanitary negotiations and authorizations will be accelerated to stimulate Argentine exports to China,” he adds.

Both countries also signed agreements to promote areas of technology and innovation such as green development, the digital economy, the space field and education and agriculture, the statement added, as well as nuclear energy, a line of investment that has raised controversy in the country.

According to data from the Argentine presidency, China is the country’s first non-Mercosur trade partner, the second destination for agro-industrial exports and its first investor in renewable energies. In turn, China finances various infrastructure, energy and transportation projects, to which is added the collaboration between the two countries in agriculture, education, culture and sports.

In diplomatic matters, Argentina reiterated its support “for the principle of one China”, while the Asian giant showed its support for the conflict over the Malvinas or Falklands Islands that for decades has confronted the South American country with claims for its sovereignty with Great Britain.