China becomes Argentina’s main trading partner

The balance of the trade balance in Argentina during last January showed a surplus of 296 million dollars, accounting for exports of 5,547 million dollars and imports of 5,251 million dollars. This was revealed by the National Institute of Statistics and Censuses (Indec), also pointing out that trade, that is the sum of exports and imports, grew by 23.3% year-on-year.

But the salient note is that after eighteen months, in January China displaced Brazil as the country’s main trading partner, basically due to the explosion of imports from that Asian destination, which grew no less than 73.1% compared to the same month of 2021 .

The last time China had reached that position was in July 2020, in full global shock due to the initial restrictions in the framework of the Covid-19 pandemic.

The main reason for that “castling” in 2020, between the Asian power and the Mercosur locomotive, was that even in a scenario of sharp decline, both in exports and imports to those countries, the depth of the decline in the Brazilian case Was greater. In contrast, last month Argentine exports to the giant Chinese country fell 32.5% in relation to July 2020, while from that moment until today imports doubled, going from 751 million dollars a year and a half ago to 1,508 million dollars. dollars in January 2022.

This situation determines a clearly deficit trade balance with the People’s Republic of China, of 1,135 million dollars, which almost quadruples the deficit with Brazil (308 million dollars) and is almost ten times more than that registered with Germany (127 million dollars), Thailand (125 million dollars) or the United States (104 million dollars).

“In January, trade with China involved 6.7% of total exports and 28.7% of total imports,” said INDEC. China is one of the countries -along with Russia- with which Argentina seeks to establish a strategic and privileged relationship, as evidenced by the recent visit of President Alberto Fernández to Beijing at the beginning of the month.

From the INDEC they point out that “in January, trade with China involved 6.7% of total exports and 28.7% of total imports”, which gives a pattern of the trade profile that the country has with the Asian giant. Argentine exports to that destination had an increase of 30.4% (barely 87 million dollars) in relation to the same month of the previous year.

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