This midnight in their bilateral meeting, President Alberto Fernandez signed a joint declaration with his Chinese counterpart, Xi Jinping, in which, among other points, The incorporation of Argentina to the Belt and Road Initiative is announced (OBOR -for its acronym in English-), the geopolitical offensive of the Asian giant to reissue the ancient Silk Road that flourished during the classical imperial period.
From the agreements and Memoranda of Understanding (MoU) between the two countries also reported a significant investment by the Asian giant of about 23 billion dollars in the country. According to the joint statement, to which Infobae, different projects in basic infrastructure, energy and transportation were confirmed in Argentina
The 5 key points:
– During the visit, the Memorandum of Understanding on Cooperation in the Framework of the Silk Road Economic Belt Initiative and the 21st Century Maritime Silk Road was signed, its objective being to reinforce the promotion of actions and works that strengthen, innovate and diversify the economic relationship and consolidate connectivity between the regions, jointly establishing an inclusive economic cooperation framework that contributes to sustainable development.
– Both parties expressed their satisfaction at the recent holding of the 5th Meeting of the Strategic Dialogue Mechanism for Economic Cooperation and Coordination (DECCE), in which the main infrastructure investment projects to be carried out in Argentina were outlined. In parallel, at said meeting options were explored to increase the participation of the local component in infrastructure investment projects and priority areas were identified to promote investment cooperation in order to increase Argentina’s exportable supply and, in this way, collaborate with the country’s external sustainability, productive development and job creation.
– For your part, China firmly supported Argentina’s efforts to preserve the country’s economic and financial stability. Likewise, both Parties highlighted the renewal of the Currency SWAP Agreement between the People’s Bank of China and the Central Bank of the Argentine Republic in 2020, which played an important role in maintaining Argentina’s financial stability. Both Parties will continue to strengthen currency SWAP cooperation in order to encourage greater use of national currencies in trade and investment and make it easier for companies from both countries to lower costs and reduce exchange risk. Also, both sides will create a good policy framework to promote the use of national currencies, and support the Chinese Renminbi (RMB) settlement bank in Argentina to play a greater role. The Chinese Party is willing to study with the Argentine side and other parties projects to channel Special Drawing Rights (SDR) from the International Monetary Fund (IMF) and to expand the use of SDRs, in order to strengthen economic development, financial stability and bilateral trade.
– The representatives of the two countries They agreed on the relevance of the G-20 as a leading forum for international economic cooperation. They agreed to continue working together in areas of common interest, such as health, finance and trade, with a view to promoting the development dimension in the Group’s agenda, actively collaborating with the current Indonesian Presidency. Likewise, they highlighted their coincidences in strengthening communication in the G-20 financial channel on issues of great relevance to promote a sustainable and balanced economic recovery in the face of the COVID-19 crisis, reinforcing coordination to end the pandemic as soon as possible. before. Additionally, they underlined the importance of strengthening communication to improve the functioning of the international financial architecture in matters such as the redistribution of the IMF’s new general allocation of SDRs and expressed the need for the organization to carry out a review of its policy on surcharges. In addition, both Parties agreed on the importance of having a robust global financial security network (GFSN) with a reasonable distribution of quotas in the IMF.
– Likewise, they ratified their commitment to continue providing firm reciprocal support to their respective sovereign interests. In this way, the Argentine Party reaffirmed its adherence to the principle of a single China, while the Chinese Party reiterated its support for the claims for the full exercise of sovereignty by Argentina in the Question of the Malvinas Islands, as well as for the resumption of the brevity of the negotiations aimed at the peaceful solution of the dispute, in accordance with the pertinent resolutions of the United Nations Organization.