Argentina and China have just exchanged copies of the memorandum of understanding that Alberto Fernández and Xi Jinping signed in February in Beijing to launch the gigantic Chinese project of the Silk Road, which includes six chapters where both countries commit to deepen the “comprehensive strategic alliance” with plans as controversial as they are ambitious that could drastically change the local economy.
Throughout a document that contains seven pages and is translated into Spanish, Mandarin and English, Argentina and China plan to launch infrastructure plans throughout the country, financial cooperation with swaps and transfers of Special Drawing Rights (DEG), a plan for companies to build “zones of industrial and economic cooperation.”
Also, both States establish a scheme for government purchases, production reinforcement programs and bilateral exports, while a “multilevel information exchange platform” will be established with multiple channels to share resources.
The central axis of the memorandum signed by Alberto Fernández and Xi Jinping contemplates the following topics: Communication. There it is maintained that “the parties will improve communication and exchange experiences tending to promote the integration and planning of development policies.” It is not explicit in the document, but this section provides for the idea of Huawei landing in Argentina to support 5G technology, an issue that the United States views with great suspicion.
In addition, both countries agree to promote cooperation projects in connectivity infrastructure in areas of mutual interest, such as roads, railways, bridges, civil aviation, ports, energy and telecommunications, among others.
The increase in investment and the flow of trade at the bilateral level is also expected. This will be done, according to the document, “by deepening investment, trade and industrial cooperation and strengthening cooperation within the Silk Road e-commerce framework.” For this, the umbrella of the multilateral trading system based on international law is foreseen.
A particular item is envisaged that does not go into details but that draws attention since it seeks to encourage companies to “build zones of industrial and economic-commercial cooperation in accordance with their effective national laws and legislation, in line with the objectives listed and guided by the guiding principles of cooperation”.
Alberto Fernández and Xi Jinping signed in February in Beijing the memorandum of understanding to launch the gigantic Chinese project of the Silk Road.