While diplomatic relations between Argentina\u2019s national government and China remain ambiguous, provincial leaders have been bypassing Buenos Aires to bolster links with Beijing. These subnational efforts are mobilising investment opportunities in natural resources, energy, infrastructure and trade expansion.<\/p>\n\n\n\n
They have been yielding varying degrees of success as the provinces navigate several challenges, including a lack of China knowledge among provincial leaders, as well as preparation on the part of trade missions headed to China. Economic constraints at the national level also continue to cast a shadow.<\/p>\n\n\n\n
During his 2022-2023 election campaign, Argentina\u2019s president Javier Milei said he would not maintain diplomatic ties with China, dismissing it as \u201cbusiness with communists<\/a>\u201d. Upon assuming the presidency in December 2023, Milei cancelled<\/a> Argentina\u2019s entry into the Brics bloc (made up of 10 countries including Brazil, Russia, India, China and South Africa) at the eleventh hour. As Milei\u2019s term has progressed, however, pragmatism has recomposed the China-Argentina relationship<\/a>.<\/p>\n\n\n\n During his first year in office, Milei benefitted from several of China\u2019s actions. <\/em>For example, following initial hesitancy over the new government\u2019s stance, in June 2024 China accepted<\/a> the renewal of its multi-billion-dollar currency swap line, which had been negotiated with Argentina\u2019s previous administration. This allowed Argentina to delay the repayment of USD 5 billion in dues. Milei later declared<\/a> China \u201ca very interesting trading partner, because they don\u2019t demand anything\u201d. And during Brazil\u2019s G20 summit in November, Milei met China\u2019s president Xi Jinping for the first time<\/a>, bolstering their relations.<\/p>\n\n\n\n However, the close ties<\/a> between Milei and US president Donald Trump cast doubt upon the extent of Argentina\u2019s near-term relations with China. For example, the new Atucha III<\/a> nuclear power plant uses Chinese technology, and so may be seen to conflict with US interests. An existing Chinese aerospace base<\/a> in the western province of Neuqu\u00e9n, and the suggestion that Huawei<\/a> could work on Argentina\u2019s 5G network, have thrown up similar tensions.<\/p>\n\n\n\n Dialogue Earth spoke to Stella Maris Juste, an international relations expert and researcher at Argentina\u2019s National Scientific and Technical Research Council (Conicet). She says that the relationship between the provinces and China \u201chas managed to weather the shifts in national politics and even in the provinces themselves, not only during the presidency of Milei, but also previously under [former president] Macri\u201d.<\/p>\n\n\n\n Juste chalks this down to complementary interests: \u201cThe provinces need to attract investment, create jobs and improve infrastructure, while China seeks to improve access to key natural resources, such as lithium and other minerals, and also greater penetration of renewable energy and ports industries.\u201d<\/p>\n\n\n\n In 2024, provinces\u2019 finances became more strained as the state\u2019s defunding measures grew. Total transfers to provincial and municipal governments fell by 19%<\/a> year on year, according to the congressional budget office.<\/p>\n\n\n\n \u201cIn the provinces, China has found reliable interlocutors to sustain the relationship in these turbulent times,\u201d explains Diego Cagliolo, who manages Asia relations at Argentina Global, a sustainable development NGO. \u201cThat is why Wang Wei \u2013 the Chinese ambassador \u2013 visits the provinces, and the governors in turn visit the [Chinese] embassy.\u201d<\/p>\n\n\n\n Indeed, throughout 2024, there were numerous overtures from provincial leadership to China, usually via Argentina\u2019s Chinese embassy.<\/p>\n\n\n\n For example, in August, the vice-governor of Catamarca province toured Zijin Mining\u2019s copper facilities, including its clean energy and battery research centre.<\/p>\n\n\n\n In September, C\u00f3rdoba\u2019s governor led<\/a> the Institutional and Commercial Linkage Meeting between his province and Chinese businesses, where Ambassador Wang announced<\/a> a Chinese car company\u2019s interest in establishing a factory in C\u00f3rdoba. Representatives of the Industrial and Commercial Bank of China (ICBC) and China Energy International Group attended.<\/p>\n\n\n\n In October, the governor of Santa Cruz visited China, signing<\/a> an agreement with fishing company Hong Dong to develop fisheries in his province. Subsequently, a delegation from the Fujian Chamber of Commerce visited Santa Cruz to discuss<\/a> a coal export agreement with Argentine state-owned coal mining firm YCRT.<\/p>\n\n\n\n Wang also visited La Pampa province to meet its governor at the end of May, accompanied by representatives of companies including Shanghai Electric Power, wind turbine manufacturer Goldwind, and ICBC.<\/p>\n\n\n\n The governor of Buenos Aires province met<\/a> with Wang in February after agreeing in November 2023 to a USD 1.25 billion<\/a> investment by China Potassium Chemical Group. The company is set to construct two fertiliser plants in the port city of Bah\u00eda Blanca. In addition, investments in Buenos Aires\u2019 renewable energy, agricultural development and ports have been discussed<\/a> with officials from Sichuan province, and the Chinese agricultural machinery firm Ruiyuan Holdings is considering<\/a> an investment. In November, Wang was in Neuqu\u00e9n province to meet<\/a> its governor. Also in attendance were representatives from large Chinese companies covering construction, railways and roads, engineering and equipment manufacture, oil and gas, and telecommunications.<\/p>\n\n\n\n \u201cChina has a long tradition of establishing multi-level relations with countries, including subnational agreements, but also through links with universities and think-tanks,\u201d explains Oriana Cherini, an international relations researcher at Conicet. \u201cIn this context, China found Argentina\u2019s provinces to be fundamental and stable allies.\u201d<\/p>\n\n\n\nProvincial pragmatism<\/h2>\n\n\n\n
In the provinces, China has found reliable interlocutors to sustain the relationship in these turbulent times<\/blockquote>Diego Cagliolo of the sustainable development NGO Argentina Global<\/cite><\/div><\/div>\n\n\n\n
Multi-level relations<\/h2>\n\n\n\n