After forceful statements during the presidential campaign that Argentina would not have relations with communist countries if elected, the now Argentine president, Javier Milei, seeks to continue a billion-dollar agreement signed between China and the previous government of Alberto Fernández.
In the last few hours, Milei sent a letter to his Chinese counterpart, Xi Jinping, not only to repair the diplomacy that was regarding to break, but, above all, to not lose the process of renewing the exchange rate swap with Beijing in yuan, which is equivalent to USD 5. billions.
In October, the Chinese Central Bank made USD 6.5 billion available to the South American country through the exchange rate swap line, following a meeting between Fernández and Xi Jinping in Beijing.
The money was used to pay part of the USD 2.6 billion debt with the International Monetary Fund (IMF). The first contact with Beijing occurred between Argentine Chancellor Diana Mondino and Chinese envoy Wu Weihua for the inauguration, last Sunday (10).
In November, Milei thanked Xi Jinping for his letter congratulating him on his victory. Milei was quick to respond: “I thank President Xi Jinping for the congratulations and good wishes he sent me through his letter.
I send my most sincere good wishes to the people of China.” Milei even stated, when he was still a candidate, that he “did not negotiate his morals in exchange for money” and that he would not do “business with “communist” countries. However, following taking office last Sunday, he has been more open to negotiating with the countries he criticized during the campaign.
This is the case of Brazil. Despite his critical stance once morest Lula, Milei kept Ambassador Daniel Scioli in office, who has a different ideological line than his.
Furthermore, shortly following the second round, having just been elected, he sent Mondino to the Palácio do Planalto to ratify the agreements with Argentina’s main Latin American partner.
