After a long corporate career focused on trade and investment links between Argentina and China, Diego Marcos is increasingly convinced that both countries have much to gain from one another.
Marcos, 48, is a professor at the Universidad Nacional de Rosario in Santa Fe, Argentina, and an assistant professor of economics at Shenandoah University in Virginia, United States.
As a founding member of the Civil Association for Argentine-Chinese Cooperation, he also regularly advises Argentine companies.
His links to China have been forged through extensive research, including a stint in northern China in his late 20s. He has also made more than 35 visits to the country and was invited to celebrate the 70th anniversary of the People’s Republic of China five years ago.
In 2015, he received a certificate from the State Council, China’s Cabinet, as a foreign expert.
“The friendship between Argentina and China is experiencing a very positive period. Day by day, there are more commercial, institutional and touristic exchanges. Two very rich and diverse cultures (are engaged in) this interaction.”
A laid-back man, he was drinking Argentina’s traditional “mate” tea during an online interview as he shared his views on the relationship between the two countries.
Marcos is passionate about his work. He spent much of his corporate career in the steel industry, but has also served as a consultant and board director in various sectors, leveraging his international business expertise with a focus on China. He has worked with companies in Argentina, Paraguay and the Hong Kong Special Administrative Region.
Marcos has tapped into his deep knowledge of Sino-Argentine relations to write a book titled Argentina-China: Basis for an Integration.
“The relationship between both countries began to intensify in the early 2000s. Since then, the foundation of the relationship has been built on commercial and financial agreements, as well as cooperation in energy, technology and education,” he said.
Marcos expects greater trade and investment flows over the next decade, potentially improving Argentina’s technological base.
“In the long term, the economic relationship between China and Argentina will continue to strengthen, as Argentina has consistently done with the rest of the world.”
Marcos expects China to continue investing in infrastructure projects like railways, mining and energy in the Latin American country. Moreover, he envisions that the relationship will extend far beyond infrastructure. For example, China’s vast domestic savings and investment potential could help fund Argentina’s new ventures.
‘New economy’
“These funds could finance the global expansion of Argentine startups. This presents an unprecedented opportunity to (tap into the potential) of the new economy, which is focused on innovation. Greater and improved cooperation in technology is the future,” said Marcos.
Marcos believes that China and Argentina’s relationship is on a long-term growth path.
“The structural complementarity and affinity between the peoples (of both nations) suggest long-term cooperation,” he said.
In Argentina, China has found a significant and reliable source of natural resources, energy and agricultural products.
After Brazil, China is already the second-largest destination for Argentina’s exports. Over the past three years, bilateral trade has topped $16 billion annually, according to Argentine government figures. Soybeans and beef are among the top exports from the Latin American nation.
On the socioeconomic front, he sees favorable relations between the people, institutions and companies of Argentina and China.
“For Argentina, the relationship with China has been invaluable, especially in helping prevent inflation from spiraling into hyperinflation,” Marcos said.
With Argentina facing huge debts, China has become an important and reliable source of finance over the past few years.
“Thanks to financial agreements with China, Argentina was able to access foreign currency at times when international credit markets were completely closed. Many argue that Argentina would have experienced hyperinflation without the support of the People’s Bank of China,” said Marcos.
“Additionally, China consistently supplied essential intermediate and final goods for the economy, and their low prices helped contain rising inflation in Argentina,” he added.
Marcos also pointed to the deeper, direct relationships between some provinces in the north of Argentina, such as Jujuy and Salta, and China. These are driven by Chinese investments in lithium and renewable energy.
Argentina’s vast lithium resources may be crucial for China’s automotive and technology industries, especially the electric battery sector. In 2023, more than 40 percent of Argentina’s lithium exports went to China.
Between 2020 and 2023, Chinese firms invested $3.2 billion in mining projects in Argentina, including seven lithium projects.
Among the China-funded projects are the Cauchari Solar Park in Jujuy, one of the largest in Latin America, and the Cafayate Solar Park in Salta.
The “historical complementarity “between Argentina’s natural resources and financing from China is expected to evolve, said Marcos.
However, he said China’s shift to a “new economy” will require both nations to diversify their economic interactions beyond traditional trade and present a new opportunity to boost the relationship between the peoples of both countries.
The writer is a freelance journalist for China Daily.
