MercoPress. South Atlantic News Agency

China is the main buyer of Argentine beef and Beijing wants to increase bilateral trade further

Between 2017 and 2022, Argentina’s exports to China grew by 12.8% per year, and although the value of exports fell last year, growth picked up again this year

Argentina’s economic relationship with China has become increasingly important, with growing trade highlighted by increasing Argentine beef exports, points out the English language China Daily. Something which to a certain point is surprising, given the electoral campaign speeches of president Javier Milei, condemning all authoritarian regimes.

But the fact is that ”for Argentina, maintaining and strengthening ties with China is crucially important for its economy, as it provides market diversification, investments and financing benefits,” Alejandro Marco del Pont, an international relations expert at Argentina’s National University of La Plata, or UNLP, is quoted by China Daily.

Between 2017 and 2022, Argentina’s exports to China grew by 12.8% per year, according to the Observatory of Economic Complexity, a data visualization tool for international trade. Although the value of exports fell last year, growth picked up again this year. Last May China imported US$ 525 million worth of Argentine products, mostly made up of soybeans, other grains and meat.

Argentina is one of the world’s major beef exporters and China has emerged as one of the largest importers. China is Argentina’s second-largest trading partner after neighboring Brazil and the top market for its beef exports.

Argentina’s beef exports to China reached 234,000 metric tons in the first five months of this year, representing some 75.8% of Argentina’s total beef exports.

China has implemented measures to ensure food security and meet the increased appetite for high-quality protein sources. In 2017, China expanded bilateral and multilateral trade agreements and overseas agricultural activities under its Belt and Road Initiative, which includes Argentina, points out China Daily.

China’s projected rise in Argentine beef imports this year is set to provide a major economic boost for the Latin American country as it struggles to shake off a several years economic recession, made worse so ar this year because of the correction measures implemented by libertarian Milei.

This progression underscores Argentina’s heavy reliance on China for its economic growth and export diversification.

In 2003, China was Argentina’s fourth-largest trading partner. By 2022, China had risen to second place, making up 21% of Argentina’s imports and 9% of its exports.

“While the diplomatic relationship between China and Argentina dates back to their establishment of ties in 1972, their commercial relationship really picked up after the signing of a strategic cooperation agreement in 2004,” Sebastian Schulz, a sociologist at UNLP, said.

Argentina stands to benefit from China’s economic opening-up and promotion of globalization by increasing its beef exports, added Schulz, an expert on Chinese studies.

With the signing of recent trade deals, Schulz noted that both nations emphasized diversifying their trade baskets, presenting opportunities for Argentina’s industrial businesses.

Schulz said China and Argentina have complementary economies and there are opportunities to deepen the commercial relationship through synergies.

“Considering China’s decision to deepen its commercial opening to the rest of the world, Argentina could further increase export volumes to the Asian country,” Schulz said.