(Special envoy in China) The first day of the Economy Minister’s tour Sergio Massa by shanghai, ended with a positive balance: “It is important to agree on a strategic vision for development. No matter who governs Argentina, you have to look for state projects”, concluded the official after his initial business day, focused on energy investments and of infrastructure. In addition, from the entourage they announced that the Thursday could be announcement day in economic matters.
On the other side of the table, the delegation met three Chinese companies: Gezhouba Group, State Grid and Power China. The latter was particularly interested in the energy export national. According to first sources that participated in the different meetings, the entity led by ding yanzhang anticipated evaluating install “a dedicated pipeline and LNG plant” locally. To delve deeper into the idea, the vice president of PowerChina undertook a trip to Argentina, at the same time that the meetings were taking place. “China is an importer of LNG, which is why they see in our soil the opportunity to generate their own gas pipeline”they celebrate in Economy, although they add that there are still no formal details about the initiative.
Meanwhile, the ambition for the completion of the Nestor Kirchner pipeline continues in force. The same Asian entity presented a financing offer for the second tranche of the work for around $1.9 billion. However, the Government showed reservations about the proposal: “We are interested, but Chinese times are longer than those proposed. The bidding should be faced at the end of July, waiting for other markets. The construction of the second and last part of 562 kilometers, It would take ten months and would incorporate compressor plants and surrounding pipelines. The completed gas pipeline plus the reversal of the North Pipeline, which would replace the importation of Bolivian gas, would save more than US$8.7 billion in energy costs. “The Gas Pipeline is clearly going to change Argentina,” said a very first source in the energy sector.
In turn, another green light stood out from the meeting with the business trio: the acceptance of financing in strategic works. Argentine officials in China assure that for the On July 15, US$924 million will enter to the BCRA coffers. This is because Gezhouba Group representatives plan to complete the second tranche of the PSanta Cruz River Dam Projectgranting US$524 million to complete a total of US$1 billion, committed for July of this year.
In addition, they advanced with the expansion of the La Ferrere sewage treatment plant, for US$70 million. They have the same intention with the sewage treatment plant, located in the Buenos Aires district The Jaguel, but without defined financing. Finally, together with State Grid they agreed to motorize the Electric Power Transmission System, which will develop high voltage lines in 24 municipalities of the Conurbano. The investment amounts to US$1.1 billion, of which US$330 million will be guaranteed in the short term. “These are projects that involve relatively quick disbursements”they explain near Massa.
The presentation of the entourage was incomplete. Juan José Bahillo, Secretary of Agriculture, was absent because it maintained its own bilateral agenda, dedicated to the reopening of the poultry marketpost avian influenza, and at the inauguration of the bovine giblets and vaccines market. “China led the technological leap, it went from being a manufacturer to a maker. However, it does not have food sovereignty, because only 12% of its territory can be cultivated, due to its geographical condition”, Argentine representatives in the country highlight. At the same time, Diego Giuliano, Minister of Transport, was not there either because he witnessed the meeting of the Governors of the New Development Bank (NBD), belonging to the BRICS strategic alliance. The official will seek to take under his arm investments dedicated to rail transport for more than US$860 million.
After the first day of work, loaded with a flight of a day and a half plus two stopovers, The mining agenda will be imposed on Wednesday. The delegation will participate in meetings related to the exploitation of the star mineral, lithium. According to official data, year-on-year exports increased by 232% in 2022 and projections for 2030 are auspicious. For this reason, Massa and Flavia Royon, the Secretary of Energy, will lead meetings with Tibet Summit Resources, Ganfeng Lithium or Tsingshan Holding Group, to face projects such as the Salar Arizaro or the Salar de Diablillos, both in Salta. “If Argentina has a deficit in the trade balance, it is because it lacks mineral development, even if it is primary. our country has twice as much lithium as Chile, and they have a surplus. Brazil exports iron, and the same thing happens,” said a senior official from the Argentine Embassy in China. Also The first Argentine Chamber of Commerce will open in China and on the table is the invitation of the technological Huaweialthough at the closing of this note the attendance of the Minister was not confirmed.
The agenda of the second day in China
But the schedule of activities for the second day will not only include the economy. Deputy Máximo Kirchner will meet with representatives of the Shanghai People’s Assembly. It will do the same in Beijing, but with figures to Nacional level. As a member of Congress and president of the Buenos Aires PJ, from China they understand as a “very important gesture” the approach of a politician of institutional rank, instead of a spokesperson. In addition, symbolically they see enriching that it is the son of those presidents “who deepened the relationship with our country, like Nestor Kirchner and Cristina Kirchner”, they explain from here. The People’s Congress is an institution of the utmost importance in China. At the same time, regarding Massa, they highlight the national decision to have concentrated on an interlocutor the representation of the most economically important ministries.
Later, in the second stage of the trip, Massa will carry out the appointment agreed for Thursday with Dilma Rouseffcurrent owner of NDB. Her mission will be to agree with the former president on the possibility of Brazil financing imports from Argentina through the guarantee of the BRICS. The delegation does not believe that reforming the statute that currently prohibits bank intermediation in countries that are not part of the alliance is possible, which is why it is not represented in that request by the Brazilian president. Lula Da Silva. This is how the alternative appears: they are betting on a BRICS member country promoting a development project in Argentina. “The idea would be for a member to make a capital contribution and the BRICS to channel that instrument, from the legal and operational development of the organization to Argentina”, they explained enthusiastically. Due to the political sympathy and the insistence of China and Brazil in this sense, they assure that the project is viable. For the closing of the day, he has agreed a meeting with Nicholas Aguzinthe Argentine president of the stock exchange Hong Kongknown as “Formoseño, former JP Morgan and Peronist.” The ability to share ads set up during the trip was mentioned at least three times by the entourage.
About the end of the tour, it will be searched in Beijing the renovation and extension of the freely available amount of the swapthe exchange of currencies shared with the Asian giant that when activated is converted into credit, but at a more convenient rate than that the IMF proposes, For example. The long-term objective: to displace the dollar as the hegemonic currency of exchange. In Shanghai, the financial district, local officials They explain to this newspaper that China does not plan except for fifty or sixty years. We will have to wait to understand if its structural projections may be compatible with Argentine policy.
Source: Ambito
