China-Argentina Relations: Both sides expect to boost trade and investment ties at G20
Updated 14:45, 01-Dec-2018
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And after Spain, Chinese President Xi Jinping will head to Argentina for the G20 Summit. The two countries are hoping to expand their relationship at the summit. Argentine President Mauricio Macri is scheduled to meet President Xi. They are expected to agree on a five-year plan and a series of trade and investment pacts. CGTN's Joel Richards dig into the construction of a pair of hydroelectric dams in the Patagonia region, part of a joint Chinese-Argentine effort.
In southern Patagonia, work is underway on two large hydroelectric dams. This is a joint Chinese-Argentine project with China providing much of the nearly five billion dollars in finance.
Construction manager Yang Zhenggui says the dams when completed will increase Argentina's electricity production by seven percent.
Work started here in 2015 during the Cristina Fernandez de Kirchner government, but stalled under the current administration.
YANG ZHENGGUI CONSTRUCTION MANAGER, REPRESAS PATAGONIA "There have been a number of difficulties. One was the environmental study. This project is in Patagonia in the Glacier National Park, a World Heritage site. The Macri government asked for another project evaluation which stopped progress for some time, but that was approved, and now we're back working normally."
The number of turbines for these two dams has been reduced in response to the environmental study.
JOEL RICHARDS SANTA CRUZ, PATAGONIA "Despite concerns over the environmental impact, work on these dams is moving ahead. This is the largest infrastructure project in Argentina and will take a number of years to complete."
The dams are viewed as an important pillar in the relationship between China and Argentina. Infrastructure is just one of the areas in which China is playing an ever greater role in this country's economy. Buenos Aires recently expanded its currency swap with Beijing, and China has opened up its market to Argentine agricultural produce, the first-ever shipment of blueberries from Argentina to China left just last week.
Presidents Macri and Xi are expected to sign 30 agreements and a five-year plan during their meeting on the sidelines of the G20 summit this week. Argentina has a trade deficit with China but observers say things may change.
NICOLAS DAMIN SOCIOLOGIST "There is a political consensus about the relationship with China. We are working now on what we could call the micro-economy of each sector, from mining to blueberries, and how Argentina can benefit from sectors in the Chinese economy. That is what is new."
Argentina has endured a rocky economy so far this year. Boosting exports and attracting more investments will help, and China appears positioned to step up its presence. Joel Richards, CGTN , Santa Cruz, Patagonia.