MercoPress. South Atlantic News Agency

Beijing promises more trade and investments but Argentina must respect Chinese exports

Trade minister Chen Deming also asked for an improved investment environment

China Trade Minister Chen Deming promised to further increase bilateral trade with Argentina which last year reached 13.5 billion US dollars but also asked for reciprocity regarding China’s exports.

On an official visit to Argentina, Chen Deming flew to Buenos Aires from Washington where he attended China/US bilateral talks, and anticipated that China is determined to increase purchases from Argentina and the Mercosur block.

In a joint press conference with Foreign Affairs minister Hector Timmerman, Chen Deming said “China is Argentina’s second trade partner, while Argentina is China’s fourth trade partner in Latin America and we hope to escalate a further step in our economic-trade relations”.

China absorbs 8% of Argentina’s exports and is the origin of 14% of the South American country total imports.

Last year Argentina exported 5.85 billion US dollars to China, up 60% from 2009 while imports totalled 7.65 billion USD, having increased 59%.

Timmerman described relations with China as “excellent” and announced the two countries would work “to harmonize trade and a more balanced exchange which would include not only commodities but also finished goods”.

“China is determined as long as her level of exports is maintained, to increase imports from Argentina”, said the Chinese minister

Trade relations between Argentina and China have gone through rough moments lately because of ‘antidumping’ measures imposed by President Cristina Fernandez de Kirchner administration on several Chinese items as a consequence of the 2008/09 world recession.

China retaliated by cancelling soy oil purchases, but following a visit by President Cristina Fernandez to Beijing relations begun improving and during the visit of Chen Deming, the sale of half a million tons of Argentine soy oil was announced.

The Beijing official also said that to attract more investments from China to help diversify the region’s exports, Argentina and Latin America must open their markets, improve investment environment and upgrade infrastructure.

“China is willing to help diversity Latin America’s export to China and welcomes more exports with high added value from the continent”, said Chen Deming.

The minister said China has reserved an exclusive exhibition area for Latin America at the annual China Import and Export Fair held in the southern province of Guangzhou.

“Making Argentine wine popular in China is a good start”, suggested the minister.

During his meeting with President Cristina Fernandez again emphasized his hopes that Argentina would further improve its investment environment to facilitate China's interest in the country. He also mentioned that Chinese exports to Argentina should have the same conditions as other suppliers.

Chen Deming spent four days in Argentina together with a delegation of some 80 Chinese entrepreneurs from the energy, mineral, auto, agriculture, infrastructure, science and technology, food, oil, telecommunications, chemical, finance and services sectors.