The New Silk Road: the Chinese megaproject Argentina is joining

The Argentina to join the New Silk Road, the infrastructure megaproject promoted by China, in the coming months, as confirmed by Luis María Kreckler, the ambassador of this country in Argentina. The incorporation of the Government into the La Franja and BRI (Belt and Road Initiative) implementation agreements, known as the New Silk Road, involves access to various infrastructure projects of the Asian giant to connect with the rest of the planet. Chinese President Xi Jinping has already discussed this project with President Alberto Fernández.

At first, when Chinese President Xi Jinping presented the idea at the Astana (Kazakhstan) and Jakarta (Indonesia) summits in 2013, the proposal was limited to neighboring countries and its focus was mainly on building infrastructure. But it has grown geographically and sectorally, as China’s position of strength abroad has grown. Currently, according to Beijing, more than a hundred countries around the world are joining. And it covers just about any area – it has business, financial, security, and cultural components. For China, the benefits of the plan are obvious: widening roads to the west allows it to develop its poorest western regions; it stimulates its industrial sectors at a time when its economy is entering a phase of weaker growth; opens up markets for your products; facilitates the adoption by other countries of its technological standards, for example in 5G telephony; and, in general, it is expanding its international presence and influence.

Yesterday, from hechio, eThe Minister of Productive Development, Matías Kulfas, stressed the “need to work on the bilateral cooperation program to expand the enormous opportunities that exist between Argentina and China” by participating in the inauguration of the “Special Matchmaking Series online on Argentinian wine “ at the 3rd China International Import Expo (CIIE). Of the act – which was performed virtually – Chinese Vice Minister of Commerce Wang Bingnan; the ambassador of that country in Argentina, Zou Xiaoli; and Chairman of Bank of China Limited, Wang Jiang.

“We are convinced that China will continue to demand our products and we believe that this opens a great opportunity for our wines as Argentina is a world benchmark for the quality of its production,” said Kulfas. The minister also stressed the importance of “working with the private sector to open up opportunities for our companies to position their products in China’s growing domestic market and to strengthen exports now below their potential.”.

During the meeting, more than 20 Argentinian companies producing wine and grape must held business meetings with more than 20 Chinese importers. According to the Chinese official, “in the first nine months of this year, despite the impact of the pandemic, the growth of bilateral trade has been achieved, and the volume of Argentina’s exports to China has reached 5.2 billion of US dollars, which represents an increase of 8.3% compared to the same period of the previous year “. This will be the first experience in a series of larger tours that Desarrollo Productivo, the Bank of China and the Chinese Embassy in Argentina will launch soon.

Meanwhile, Xiaoli said that “in 2020 a new chapter has been written for the bilateral relations between China and Argentina through the joint fight against the Covid-19 pandemic and the joint overcoming of multiple difficulties.” The diplomat also said that they hope that “not only will the participation of Argentine wine in the Chinese market increase, but also that wine serves to attract more Chinese tourists to Argentina. “

So far, Chile, Uruguay and Venezuela, as well as Bolivia, Ecuador, Guyana and Suriname have joined the initiative, although China funds projects in Latin American countries that are not members of the BRI. Argentina, for example, is a recipient of Chinese funds for a number of major Argentinian infrastructure projects, including two nuclear power plants and a $ 2.5 billion upgrade to its main freight rail network.

By joining the BRI, Argentina could unlock Chinese funding for vital investments in infrastructure and transport, fossil and renewable energies, mining, manufacturing, agriculture, innovation and information technology . This would allow the country to fill infrastructure gaps and better integrate with countries like Chile, which has strong trade corridors that connect it to foreign markets in Asia, thereby reducing logistics costs and improving competitiveness.. This understands that the Chile-China Underwater Optical Network is potentially a game changer as it will help boost interconnectivity, trade, investment, as well as scientific and cultural exchanges between South America and Asia. , the first time this happens. The cable begins in the Chilean city of Valparaíso, crosses New Zealand, Australia and French Polynesia, and connects to Shanghai.