IMPLICATIONS A strategic partnership: Argentina joins China's BRI

In April 2020, China had become Argentina’s largest trading partner even though temporarily. The United States occupies the third place as a trading partner with Argentina after Brazil and China.

- PRITI SINGH

The recent decision taken by Argentina to become a part of China's Belt and Road Initiative (BRI) officially, on 6 February 2022, should not come as a big surprise. Argentina's President Alberto Fernandez finalised the agreement during his visit to Beijing to attend the opening of the Winter Olympic Games. A Memorandum of Understanding on BRI COoperation was signed. This further strengthens the bilateral relationship of the two countries as well as promotes cooperation in other areas such as digital economy and connectivity, aerospace, satellite system, innovation in technology, agriculture, energy and environment. China is already an important trade partner for Argentina. During the Covid-19 pandemic (first six months of 2020), Chinese imports of primary goods such as soybean and beef helped Argentina maintain a positive trade balance, even when most economies were experiencing recession. While Argentine exports of manufactured goods, fuel and processed agricultural goods fell during this time of the pandemic, exports of primary goods to China actually grew in the first half of 2020.