Before beginning her official visit to the People’s Republic of China, Foreign Minister Mondino had a busy schedule of activities in Shanghai, where she participated, together with a business delegation, in the Argentina Business and Investment Summit, a forum dedicated to trade promotion and investment attraction between both countries.
In the presence of representatives from Argentine companies already operating in China and potential Chinese counterparts from different sectors, Foreign Minister Mondino offered an overview of the structural economic reforms promoted by the Argentine Government, with a view to improving the business environment and facilitating the flow of investments, including Argentina’s significant export supply and the most attractive sectors for investment.
After referring to the 0.2% fiscal surplus achieved during the first three months in office, as well as the reduction in public spending and inflation, Mondino affirmed that the Government is taking additional measures to increase existing fiscal and economic incentives and to encourage large investments. In this regard, she stated that the Argentine and Chinese economies are complementary, which is evidenced by the high levels of trade exchange. In 2023, China was the third top destination for Argentina’s exports, which reached USD 5.200 billion and represented nearly 8% of Argentina’s total exports.
Mondino stated that, even though the trade balance between both countries results in a deficit for Argentina, the country needs to achieve equilibrium in the relationship and create substantial opportunities to increase and diversify Argentina’s export supply to China. The Foreign Minister added that, with clear and stable market rules, businesspeople will find interesting opportunities. She also highlighted the prospects for national economic growth.
Since 2000, China has been an important investor in Argentina, together with many historical partners from Latin America and Europe. As of September 2023, that is during the first nine months of 2023, Chinese Foreign Direct Investment (FDI) in Argentina reached hit a record high at USD 3.580 billion. However, China is the thirteenth top investor in Argentina.
Furthermore, Mondino highlighted the importance of boosting the creation of business ecosystems comprising suppliers of knowledge-based services, creative industries, tourism and sports.
Afterwards, the Director of the Bagó Group and President of the Argentine Chamber of Commerce for Asia and The Pacific, Rallys Pliauzer, referred to the importance of the Chinese market for Argentina’s production, as well as the expectations created by this new stage in Argentina, which results from President Milei’s election and the economic reforms promoted by his administration. He urged all attendees to continue collaborating and promoting greater commercial and investment ties for the benefit of both peoples. “I am convinced that China and Argentina have vast common ground for cooperation and technological, commercial and economic complementation,” he concluded.
For his part, the Executive Director of the Argentine Association of Meat Packers and Beef Producers and IPCVA Advisor, Daniel Urcia, underscored the benefits of Argentine beef quality and its market potential, based on ongoing operations and growth prospects.
The Chinese businesspeople who attended the Foreign Minister’s presentation expressed their positive views on and confidence in the economic reforms promoted by President Milei, with special interest in the boost to production and high added value exports and respect for private property, market economy and legal certainty.
In the context of the business forum held at the Fairmont Peace Hotel in Shanghai, the Foreign Minister held working meetings with executives of Chinese companies Tibet Summit Resources, Ganfeng, Power China and Greenland, which have important investments in projects developed in Argentina. Joined by the Secretary of Finance, Pablo Quirno, and the Governor of the Central Bank, Santiago Bausili, the Foreign Minister had the opportunity to offer an overview of the economic reforms promoted by the Argentine Government to facilitate the business environment, trade and investment operations, as well as plans to develop infrastructure, which were met with great expectation and confidence by the Chinese businesspeople, who expressed their satisfaction with the efforts of the Argentine authorities to favour a stable political and economic environment.
The president and founder of the mining company Tibet Summit Resources, Jian Huang, offered details on the plans to invest USD 2.2 billion in two lithium projects in Salta, out of which USD 700 million will be invested in the Diablillos Salt Flat and USD 1.500 billion, in the construction of a lithium processing plant in Arizaro Salt Flat. Tibet Summit expects to produce nearly 30,000 tons of lithium carbonate for batteries in the Diablillos Salt Flat this year. In the future, they expect to process between 50,000 and 100,000 tons in Arizaro Salt Flat.
The president of Ganfeng Lithium, Li Liangbin, went through the history of the company, founded in 2000, its worldwide operations and, in particular, its operations and long-term projects in Argentina, where the company’s investments amount to over USD 2 billion. Its lithium extraction projects are Cauchari-Olaroz, Pozuelos-Pastos Grandes, Mariana and Incahuasi. Ganfeng, listed on the Shanghai Stock Exchange, is the largest lithium metal manufacturer in the world. The company covers the entire lithium value chain: mining, product processing, metal smelting, manufacturing and recycling of lithium batteries. It has a 40% global market share as a lithium metal supplier and a 70% market share in mainland China.
In addition, the Foreign Minister held a meeting with Lindi Jiang, president of Power Construction Corporation of China, a construction group specialized in water resources development, environment, infrastructure and real estate, including power generation, irrigation water, railroads, undergrounds, roads, airports, urban infrastructure and large-scale civil engineering. The company entered the Argentine market in 2011 and has developed over 30 projects, totalling over USD 5.600 billion. The Chinese executive offered details on the company’s operations in Argentina and its expansion plans. He invited the Foreign Minister to visit the company’s offices in Buenos Aires and the wind and solar farms of the 10 ongoing projects on renewable energy and infrastructure in different provinces.
The president of the Greenland Group, Zhang Yuliang, underscored the positive cooperation ties established with Argentine businesspeople, presented the activities planned in Argentina and expressed his desire for increasing cooperation. Founded in 1992, and with headquarters in Shanghai, Greenland Group focuses its operations in real estate development, both in the urban and industrial sectors. In addition, it carries out relevant activities in the financial industry, the hotel sector, underground systems and the coal and hydrocarbon energy industry.
During the working day, Mondino was accompanied by a large business delegation made up of representatives from the various sectors that make up Argentina’s exportable supply, which included representatives from Barrick Exploraciones Argentina; Bustos y Beltrán; Bagó Group; Newsan; Techint Group; Pluralsud; Lavicor; Gotion Argentina; Las Perlas; Exar/Lithium Americas Corporation; Iplan; YPF Solar; Ganfeng Lithium Argentina; the Mining Chamber of Salta; the Argentine Chamber of Commerce for Asia and The Pacific; Frigorífico Logros; Carnes Vireyes; Brody Friedman; IPCVA; the Argentine Agrarian Federation; the Federation of Argentine Regional Meat-Packing Industries; the Argentine Association of Meat Packers and Beef Producers; and Sunresin.
The official delegation was made up of the Secretary of Finance, Pablo Quirno; the Governor of the Central Bank, Santiago Bausili; the Foreign Ministry’s Secretary for International Economic Relations, Marcelo Cima; the Argentine Ambassador to China, Marcelo Suárez Salvia; and the Argentine Consul General to Shanghai, Luciano Tanto Clement.
Later, the Foreign Minister was received by the Deputy Mayor of Shanghai, Hua Yuan, who welcomed her to the city and highlighted the positive bilateral relationship between both countries, which is evidenced, in particular, by the relationship between Shanghai and the cities of Buenos Aires and Rosario which, he said, is developed through economic-commercial, cultural and educational exchanges, among others. After describing the city’s evolution—which he said “spearheaded China’s opening and reform”—in terms of infrastructure, technology and economic-commercial matters, the Deputy Mayor expressed his interest in learning more about the ongoing economic reforms in Argentina and the prospects for further cooperation in different fields.
At the end of the day, Mondino and the business delegation visited Argentina’s Integral Hub in Shanghai, a space for the promotion of Argentina’s exports to China.
After her stay in Shanghai, Mondino will travel to Beijing, where her official visit to the People’s Republic of China will commence and where she will hold political meetings with high-level authorities, including her counterpart, Foreign Minister Wang Yi, with whom she will discuss the main issues of bilateral interest.
