MercoPress. South Atlantic News Agency

Argentina’s future closely knit as supplier to China’s growing middle class

Asian and trade affairs expert Jorge Malena: a 500 million middle class in China by 2025

The growing Chinese middle class which could reach 500 million people by 2025 will be the great locomotive for commodities demand in the coming decades benefiting countries such as Argentina according to an Asian affairs and trade expert.

“The growing Chinese middle class, currently 150 million people out of a total population of 1.330 billion, will make China the main demander of consumer goods”, said Argentine academic Jorge Malena, adding that for countries such as Argentina rich in natural resources means “is an excellent opportunity for the sale of energy, industrial input and food. We can expect China to consolidate as Argentina’s main trade partner”.

Malena, 45, is the son of an Argentine military attaché in Beijing who spent several years in China where he went to school and later completed tertiary studies and speaks mandarin fluently. As a business expert he is usually a member of Argentine trade missions in business dealings with China.

According to Malena in the last year of the total Chinese investments in Latin America, almost 15.6 billion dollars, an estimated 40% went to Argentina. China is also Argentina’s second trade partner behind Brazil.

Malena points out that currently Argentine sales to China are mostly linked to soy beans and oil seeds, but “we need to advance our agro-business so that Argentina can sell finished goods adding value to our agriculture export capacity”.

The Argentine expert recalls that a White Book from 2008 on Latin America from the Chinese Foreign Affairs ministry titled “Document on Chinese policy towards Latin America and the Caribbean” stated that it was in the interest of Beijing to promote investments in the region, in manufacturing, agriculture and forestry among other areas.

“It can be said that for Chinese experts planning for the future, Latin America is a promising region for business”, said Malena. To that effect the Argentine expert also mentioned the fact that many Chinese cities and provinces have established “twin” links with cities and provinces in Argentina, which helps promote people to people relations as well as the growing number of joint ventures in all fields of business.