In South America, Xi eases the way for bilateral trade
Kamilia Lahrichi notes China's focus on deals to improve transportation
President Xi Jinping's visit to Argentina over the weekend has further eased access to key commodities for China, to support its thriving economy, while strengthening its influence in Latin America.
Xi and President Cristina Fernandez de Kirchner inked 19 agreements on finance, energy, infrastructure, agriculture, trade and cooperation.
The most significant deals included a US$11 billion currency swap, a US$4.7 billion investment in hydroelectric dams in Patagonia and a US$2.1 billion project to revamp a dilapidated freight railway crucial to transporting commodities.
This year marks the 10-year anniversary of the China-Argentina strategic relationship.
China is Argentina's second-largest commercial partner after Brazil, with Sino-Argentine bilateral trade reaching US$17.3 billion last year.
Most Chinese investment in infrastructure in Argentina and Latin America as a whole is done with the aim of boosting transport efficiency and the flow of commodities to China. Since most of the production takes place in the countries' interior, the construction or expansion of terminals, ports and railways, as well as the modernisation of equipment, is necessary for China to secure transport of commodities to its shores.
Thus, renovating Argentina's Belgrano Cargas railway equipment and infrastructure is key to Beijing's growth. This 10,000km network, the "veins of the country", connects 13 of 23 provinces as well as the port of Buenos Aires. It transports cement, coal, metals, wood, sugar, grains, water and wine.