Between China, Brazil and the Argentina of Javier Milei, commercial and diplomatic relations could soon find themselves at a standstill. It appears that the new Argentine president plans to dollarize Argentina and separate it from China, Brazil and BRICS. Although the information has not yet been the subject of an official communication, it nevertheless casts deep doubt on the membership of Argentina, the leading economic power in Latin America, in the BRICS. However, Beijing remains adamant: we will not beg.
Javier Milei could defend the dollar and reject China, Brazil and BRICS
About three months ago, Argentina was invited to join BRICS. Remember that Argentina is the largest economy in Latin America and one of the world’s largest agricultural epicenters. Its membership will be a real boost to the dedollarization that has been underway for several years around the world.
Unfortunately, rumors say that Javier Milei will instead work to strengthen Argentina’s ties with the USA and to dollarize his country. During his campaign, the now president had already stated that he was going to cut ties with Brazil and China. He had promised that he would not work with “any communist country” after having called China a “murderer” and the Brazilian president a “socialist with a totalitarian vocation”.
However, China and Brazil are founding members of BRICS. They are also Argentina’s two major trading partners. Beijing has just reacted to rumors about the country’s alignment and promised that it would not beg if they were true.
Argentina will be ruined without Chinese investments, says Beijing
Interviewed by the media, Sabino Vaca Narvaja, Argentina’s ambassador to China, discussed the consequences of a possible separation between China and an Argentina in crisis. According to him, Argentina would then suffer “the loss of several million jobs” and “an implosion on the agricultural, social and financial levels”.
This is also the opinion of Mao Ning, spokesperson for the Chinese Ministry of Foreign Affairs who reacted to rumors about Javier Milei’s rejection of the BRICS invitation. The diplomat encouraged the countries invited by BRICS to join and assured that a break between China and Argentina would cause the ruin of the latter.
It should be noted, in fact, that China absorbs a large share of Argentina’s annual agricultural exports. In 2022, it has purchased 92% of its soybeans and 57% of its beef. Beijing also massively finances several construction projects, including two hydroelectric dams. Milei therefore finds itself in a weak position vis-à-vis China and does not risk engaging in a diplomatic standoff with two colossi. Even if its policy of dollarization of Argentina may slow down the expansion of the BRICS, it is not likely to stop the process initiated against the hegemony of the dollar and the USA.
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