According to “Pagina 12”, Beijing is demanding concrete signs of rapprochement with the Asian nation from Javier Milei
China has frozen the $6.5 billion loan granted to Argentina through the Chinese currency swap, Argentine newspaper Página 12 reported on Tuesday (12/19/2023). According to the vehicle, the transmission of the appeal will be suspended until Argentine President Javier Milei shows concrete signs of rapprochement with Beijing.
The Asian country's central bank made the resource available in October after thenArgentine President Alberto Fernández met with Xi Jinping. On page 12 it says that a clause on political relations between the countries was agreed in the negotiations. China also demands that Argentina have a “programmatic agreement” with the IMF (International Monetary Fund).
The exchange rate agreement with China is important for Argentina because it helps the South American country pay off its debts. The Argentine government used the currency swap to pay off part of its $2.6 billion debt to the IMF in November. It is also a strategy that the Argentines must increase their reserves since the president will have a small stock of international reserves.
Milei is trying to quickly rebuild relations with the Asian country. Relations between the countries were strained after the Argentine president declared that Argentina would not do “business with communists” in his government.
The first gestures of rapprochement came after the election of the Argentine head of state. On this occasion, the President of China sent a letter to Milei congratulating him on his victory. The libertarian thanked him.
On December 11, Milei and Foreign Minister Diana Mondino met with Wu Weihua, Xi Jinping's envoy to the Argentine leader's inauguration and vice president of the Permanent Council of China's National People's Congress. The following day (December 12), the Libertarian sent a letter to the Chinese leader asking for Xi's support to speed up the process of renewing the currency exchange.
China did not deny the possibility, but expects clarity on Argentina's positions. One of the Chinese demands is the appointment of an Argentine ambassador to the Asian country.
Argentina's representation in China is currently carried out by Secretary Marcela Barone. She took office following the resignation of Ambassador Sabino Vaca Narvaja. The lack of an official successor is viewed negatively by Beijing.
According to Infobae, Beijing will only release the loan if Milei meets Xi Jinping on an official visit to China or on another occasion. The libertarian was invited to travel to the Asian country during the meeting with Wu Weihua.
China also wants the South American country to buy Chinese JF17 fighter jets. This Chinese demand was boosted after the Argentine Ministry of Defense resumed negotiations to purchase F16 fighter jets. The vehicles are made in the USA and operated by Denmark.
According to Page 12, China's ambassador to Argentina, Wang Wei, was asked to return to China to present a report on possible scenarios for economic relations with Argentina while the country is under Milei's government.