Following its BRICS invitation, both China and Argentina have increased their partnership despite the latter’s uncertain future. Indeed, the collaborative efforts of both nations were championed by the Chinese ambassador to Argentina, Wang Wei. Yet, a change in leadership could see it eventually refusing its invitation to join the economic alliance.
Argentina was one of the six countries listed in the BRICS expansion invitation this year. However, as the country approaches crucial presidential elections, its inclusion is not a certainty. Javier Milei, the probable incoming president of the country, has already clearly expressed his desire to dollarize the nation. Therefore, it goes against the overall BRICS commitments made by the previous regime.
China & Argentina Celebrate Increased Partnerships
Also Read: Will BRICS Suffer Losses if They Abandon US Dollar?
The BRICS economic alliance had all eyes on them when they announced six countries had been invited to join the bloc. Those nations included Saudi Arabia, Iran, the United Arab Emirates (UAE), Argentina, Egypt, and Ethiopia. However, whether or not they all end up joining the collective remains to be seen.
Specifically, as the two potential BRICS partners, China and Argentina, grow their blossoming partnership, their uncertain future hangs in the balance. Specifically, the country is caught between the suffering economic state of its citizens amidst its current regime and the potentially radical changes to be brought about by its presidential successor.
In a recent statement, Wang Wei, China’s ambassador to Argentina, discussed the growing relationship. “Argentina and China are very far apart, but that great distance cannot prevent us from getting to know each other better and strengthening friendly relations,” he stated.
Argentina’s BRICS Future in Question?
Also Read: US Dollar Outperforms 20 Currencies in a Month
China has remained the second-biggest trading partner for Argentina. Moreover, bilateral trade between the two nations was worth more than $20 billion in 2022. Subsequently, that figure is a 20% increase from the year prior. However, this celebrated relationship could come into question as a new president takes office in Argentina.
Specifically, Javier Milei, winner of the presidential primary, has spoken out against joining BRICS. Additionally, his perspective does not seem to align with the overall bloc’s direction. This is especially evident in the realm of de-dollarization. Milei has been an advocate of dollarizing the country amid its treacherous peso performance this year.
“The higher the price of the dollar, the easier it is to dollarize. Eliminating the Central [Bank] is an immovable policy because we believe that there is a moral issue,” Milei recently stated. Alternatively, how Milei’s eventual ascension to the presidency affects the country’s BRICS invitation is an interesting development.