Chinese, Argentine presidents meet to discuss trade

Global Business

Argentine President Cristina Fernandez de Kirchner is in Beijing for a high-profile visit this week with Chinese President Xi Jinping. The two leaders will be looking for ways to promote both government and private trade at a time when trade between their countries is already at an all-time high. CCTV America’s Joel Richards reported this story from Buenos Aires, Argentina.

Chinese, Argentine presidents meet to discuss trade

Argentine President Cristina Fernandez de Kirchner is in Beijing for a high-profile visit this week with Chinese President Xi Jinping. The two leaders will be looking for ways to promote both government and private trade at a time when trade between their countries is already at an all-time high. CCTV America's Joel Richards reported this story from Buenos Aires, Argentina.

On Wednesday, Kirchner and Jinping will meet for the second time in seven months, cementing political and economic ties between their countries.

China recently delivered initial funding to build two dams in the south of Argentina — part of a massive hydroelectric project that will cost more than $4.5 billion. The national oil firms in both countries — China’s Sinopec and Argentina’s YPF — have also reached an agreement to jointly explore Argentina’s vast shale oil deposits.

According to the Argentina Chamber of Commerce, trade between the two countries reached a record high in 2014, and a committee of business leaders has accompanied the Argentine president on this visit. Businesses in many sectors see this as an opportunity to further trade ties with hopes that the delegation will return home with more signed contracts.

“We have just one export agreement signed with China, for frozen boneless meat,” Mario Ravettino, vice president of the Argentine Beef Promotion Institute said. “Other countries like Uruguay, which has the same health status as Argentina, have five.”

Analysts have said the relationship benefits both countries, but some point to the imbalance in trade as a cause for concern in Argentina.

“There is a lot of criticism, particularly in sectors such as production, especially industrial production, who feel the growing commerce with China will create a large budget deficit,” economist Julio Gambina said.

China has come to Argentina’s aid with a multi-billion dollar currency swap to stabilize the peso. The relationship between the two countries is only expected to deepen.