The main objective is to develop the bilateral relationship in commercial and financial terms: the possibility of importing in yuan is added to the possibility of financing investments in the same currency. Thus, the intermediation of the dollar to operate in Argentina may be displaced, promoting, according to the delegation, three things: direct financing, price honesty and improvement in the trade balance, today with a deficit of around US$10 billion, according to the consultant Elizondo. The strengthening of the link with the Asian giant could result in China becoming the country’s main trading partner. Currently, he disputes the podium with Brazil.
The advance was made within the framework of the launch of the first Argentine Chamber of Commerce in China, an opening requested by almost 20 Argentine companies. The formal announcement will come later. “Entities will be able to enter the single and free exchange market directly with the yuan instead of doing it from the CCL dollar or using yuan to buy dollars,” They explain who is part of the agenda. To carry out the operation, companies must open yuan accounts at the BCRA. For this purpose, the yuan spot and futures markets are already exposed, as well as an account system.
The decision is accompanied by remarkable timing: while the need for foreign currency is imperative and makes the market uneasy about the destination of the reserves, local officials in China have made clear “the intention to install their currency worldwide in the long term.” In turn, just a few hours before the meeting with the head of the BRICS bank, Dilma Rouseff, the gesture of ending the relationship with one of its member countries is read, in the midst of the already well-known request to join the alliance and the indefinite possibility of financing Brazilian imports under its legal and operational tutelage. The announcement will be formalized after this meeting, already in Beijing, in front of forty companies of special relevance in China, with local investments. Meanwhile, the story will continue on Thursday, when Massa will hold a meeting with the Ministry of Commerce, the body that directly affects the financing in yuan that he proposed in the business community.
“It is an economic and political signal”, conclude near the Minister, who finished his second day having dinner with the team of the Tsingshan mining. The picture was varied: dazzled by the technological and light play of the buildings, some twenty diners toasted with imported wine from the company terrace, which overlooks the landscape of the Bund, for the consolidation of an agreement for the expansion and creation of new lithium-related projects. “Today it is the star mineral of Argentina”, they highlighted from the massismo. Only the company agreed with Argentina to advance in the Salar Centenario – Ratones project, destined to extract lithium for US$ 770 million, and the plan for a chlorine-alkaline processing plant in Jujuy was discussed. His owner, Xiang Guangda, listened to his partner, ate crab, sea cucumber, meat, fish soup, and smiled. Perhaps his smile also explains why he is one of the fifty richest men in China. Tsingshan bills US$50 billion in the Chinese market annually, and US$45 billion in the international market.
Anyway, the day was distributed throughout the day. Massa met with the company Tibet Summit Resources, with which he discussed the Salar Arizaro and Salar de Diablillos projects, which include a lithium processing plant in Salta for US$1.7 billion. In addition, he held a meeting with Ganfeng Lithiu, which has four projects in Argentina for more than US$2.7 billion. Lastly, he worked on the Cauchari-Olaroz project and on the Mariana Project, which promotes the extraction of lithium in the Salar de Llullaiaco, also in Salta.
“We are not satisfied with being exporters, we also want what is primarily exported to begin to have added value,” they highlighted from the official’s circle. Since 2021, Tsingshan designated Argentina as the headquarters for mining exploitation and now, its headline highlighted: “We care about Argentina as well as China or Indonesia itself. Both countries will be complementary and commercial exchange will be more frequent in the future”.
The massista circle understands energy as the determining factor, in a context where the exploration and exploitation of strategic resources was put on the agenda. Entrepreneurs who participated in the conference project that Argentina “could be the second lithium exporting country” in 2030.
In turn, it is part of what it understands as “strategic sectors linked to continental security disputed between the US and China”, as well as the waterway, hydroelectric plants, 5G or ports. This geopolitical tension was translated with the following phrase: “If the United States puts its eye, China puts the body.” However, the synthesis was as clear as the statement: “You have to know how to manage your priorities”, was heard on the terrace of the mining company.
At the same time, the political support of the Communist Party became visible in Máximo Kirchner’s meeting with the Chinese People’s Consultative Conference (CCPPC). “It may bother other countries, but we continue to maintain and deepen bilateral relations,” said the President of the Buenos Aires PJ. Without a combative but decisive tone, at the University of Fundan he also added: “I highlight the collaborative nature of the relationship where the aid is provided without exerting any kind of pressure.” Cecilia Moreau, president of the Chamber of Deputies, was one of the political figures who accompanied Kirchner in another of his meetings, this time at Huawei, the technology company. The political gang arrived at the hotel around midnight, claiming long work hours. Tired, she promised to speak with the journalists in the next few hours.
Source: Ambito
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