Argentina is one of the latest countries in South America to actively seek to boost trade and business connections with China.
Argentine President Cristina Fernandez de Kirchner is currently on a trip to China to discuss future bilateral trade and economic cooperation.
At a business lunch in Beijing she said that the there is great potential for the two countries on an economic and political level.
Chinese Vice Premier Hui Liangyu, who also attended the event, said the Chinese government encouraged Chinese firms to invest in Argentina, while welcoming Argentinian entrepreneurs to do business in China.
Figures from Argentina’s National Institute of Statistics show that in the first four months of this year, the volume of bilateral trade exceeded US$3.2 billion, a 14.65% increase year on year.
Some six contracts were agreed. This includes deals for work on Argentina’s light rail system, subways and electric rail improvements.
Kirchner also used the trip as an opportunity to call for an international system of financial regulation ahead of the G20’s next meeting in Seoul later this year, a sign that she intends to make sure that Argentina is a major player in the decision making process.
‘It is vital that when we arrive in Seoul in November we have an international system of financial regulation in place. In particular the regulation or eradication of tax havens is essential as this is a problem for all economies, she said after making a visit to the Beijing University of International Business and Economics.
She also called for a new alliance of emerging economies, noting that the UN Security Council and International Monetary Fund had been around since 1945 and do not necessarily reflect the changing world.
She also held private talks to discuss the lifting of restrictions imposed by Beijing in April on soya oil imports from Argentina, the world’s largest exporter of the commodity.
Some analysts believe the measure was revenge for a decision by Kirchner’s center left government to restrict imports in certain sectors to protect its industry and employment amid the global financial crisis leading to a decline in sales of Chinese household appliances and textiles.
