Since the establishment of the new Argentina government, President Milley has tried to bring United States closer together. After asking for help to no avail, Milley began to "sue for peace" with China and said that he would visit China. With Argentina's economy continuing to decline, why did Milley show favor to China? What measures did Argentina take towards China before leaving for China?
Recently, Argentina President Milley described China as an "interesting trading partner" in an interview and revealed that he would visit China in January next year, a statement that contrasted sharply with his previous tough stance on China. Of course, Milley's change in attitude toward China did not happen overnight. During his presidential campaign, he made several radical statements, including comparing China to an "assassin" and calling for "breaking ties with China."
However, since taking office in December, his position has gradually changed, and there are many reasons for this. On the one hand, Milley's change in attitude may have stemmed from his dissatisfaction with United States; On the other hand, it also depends on the recent easing of relations between China and the Arab States.
In June, Argentina's central bank announced that China had agreed to renew a currency swap agreement worth 35 billion yuan with Argentina and extend the validity of the agreement for one year. This means that Argentina, which was supposed to repay China's funds by July 2025, can now be postponed until July 2026.
At present, the economic situation in Argentina is severe, the poverty rate has increased significantly, and the pressure on people's lives has increased. Statistics show that the poverty rate in Argentina soared from 41.7% in the second half of 2023 to 53% in the first half of 2024, the highest level since 2003. Extreme poverty has also risen sharply, with some 3.4 million Argentines struggling to pay basic living expenses.
In response, the Milley government adopted a series of austerity policies, including freezing pensions, cutting social welfare programs, suspending public works projects, and reducing subsidies for energy and transportation. However, while these measures have been welcomed by markets, investors and the International Monetary Fund, Argentina remains under significant economic pressure. It can be said that this helping hand extended by China is undoubtedly a relief for Argentina, which is currently in extreme economic difficulties.
In fact, for a long time before, China has provided a lot of active assistance and preferential policies to Argentina. However, before and at the beginning of his rise to power, Milley was "hostile" to China. Why, then, did Milley wake up now? Why did China "repay the grievances with virtue" against Argentina?
Actually, this is not difficult to understand. China's willingness to renew the currency swap agreement with Argentina is not only out of "morality", but also out of its own interests. For Argentina, Milley believed in the Western "free economy", which initially hoped to hug the "thighs" of the United States.
However, while Milley tried to draw closer ties with United States during the election campaign, Washington's actual response to Argentina has been minimal. This made Milley realize that the relationship with United States was not as simple as he imagined, and that cooperation with China was a more pragmatic option. It is precisely for this reason that Milley himself hopes to gain a deeper understanding of China through his personal visit to China and lay a more solid foundation for the future development of bilateral relations.
Before leaving for China, Milley also showed Argentina's "sincerity". On October 12, the China Trade Remedy Information Network released news that Argentina made a final anti-dumping ruling on Chinese microwave ovens and decided not to impose anti-dumping duties. Some analysts believe that this decision shows that Argentina's trade policy toward China is "turning around." In fact, this is not the only positive change in Argentina's recent trade policy toward China.
At present, Argentina has decided not to take final anti-dumping measures on synthetic fiber warp knitted fabrics and elevators originating in China, and has abolished anti-dumping duties on dishwashers in China. These measures show that Argentina is gradually easing trade restrictions with China and strengthening economic and trade cooperation between the two countries. It can be expected that with Milley's visit to China, once the two sides reach a consensus on economic and trade cooperation, it will not only help promote the recovery and development of Argentina's economy, but also provide more investment opportunities and market space for Chinese enterprises.