Tag Archives: Argentina

China Pursues Increased Access To Critical South American Resources

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Chilean President Gabriel Boric has focused extensively on the country’s lithium reserves as a source of global influence and for Chile’s development.

“We highly value the spirit of collaboration and shared growth in the spirit of building a new world order based on peace and harmony among peoples.”

China has viewed Latin America as an important source of critical minerals, such as lithium, copper, graphite, cobalt, and nickel for well over a decade.[i] The tenth anniversary of China’s Belt and Road Initiative (BRI) in Beijing, with representatives from nearly 130 countries including Chile’s President Gabriel Boric and Argentina’s President Alberto Fernández, provided another occasion for China to make further advances in the competition for access to Latin America’s critical minerals, specifically, lithium. While Chile has the region’s most developed lithium mining industry, Argentina is developing the sector, and Bolivia, with the largest lithium reserves, has the least developed mining sector. Chile permits only a small number of mining companies to operate in the lithium industry, one of which is China’s state-owned Tianqi Lithium. Meanwhile, China’s mining companies have made inroads in Argentina’s lithium industry. Ganfeng Lithium, for example, is a majority stakeholder in Argentina’s Caucharí-Olaroz operation, which will soon be one of the world’s top lithium production mines.

As per the first excerpted article from the second-largest daily newspaper in Chile, La Tercera, while in Beijing, President Boric reiterated Chile’s commitment to China’s BRI and thanked President Xi Jinping for the “spirit of collaboration and shared growth.” Boric also pronounced Chile’s support for a multipolar world order and thanked China for its focus on development. Meanwhile, according to the second excerpted article from Spain’s largest daily, El País, Boric announced a multimillion-dollar investment by the Chinese company Tingaran in battery production in Chile. Boric’s trip to Beijing for the tenth anniversary of the BRI is significant because it demonstrates China’s steadfast focus on lithium as a key driver for future economic growth and global economic governance through reusable battery technology. Further, China’s investment in Chilean battery production represents the first investment in Chile’s nascent battery production potential. Moving up the lithium value chain is a stated goal of the country’s National Lithium Strategy released earlier in Boric’s administration. China has worked hard to position itself as Chile’s long-term economic partner of choice and showing that it is interested in building value chains beyond mineral extraction in the country will be key to that endeavor.


Sources:

“Boric sostiene bilateral con Xi Jinping: ‘Valoramos mucho el espíritu de colaboración y crecimiento compartido’ (Boric maintains bilateral with Xi Jinping: ‘We highly value the spirit of collaboration and shared growth’),” La Tercera (second largest daily newspaper in Chile), 16 October 2023. https://www.latercera.com/politica/noticia/boric-sostiene-bilateral-con-xi-jinping-valoramos-mucho-el-espiritu-de-colaboracion-y-crecimiento-compartido/FFSYQHIWVRDBLO4EIOOLE6ECVA/

While visiting with Xi Jinping, Boric announced: ‘We maintain and are going to defend multilateral spaces and the principle of ‘one China,’ a premise that has been observed in an unrestricted manner by our country throughout the more than 50 years of bilateral relations. Furthermore, we highly value the spirit of collaboration and shared growth in the spirit of building a new world order based on peace and harmony among peoples.’ For his part, the Chinese president maintained that ‘relations between Chile and China are one of the best in the Latin American and Caribbean region. Chile is the pioneer of the Belt and Road in that region. China pays a lot of attention to relations with Chile.’

“Boric anuncia una millonaria tilized de una empresa china para fabricar baterías de litio en Chile (Boric announces a million-dollar investment by a Chinese company to manufacture lithium batteries in Chile),” El País (Spain’s largest daily with some of the best coverage in Latin America), 16 October 2023. https://elpais.com/chile/2023-10-16/boric-anuncia-una-millonaria-inversion-de-una-empresa-china-para-fabricar-baterias-de-litio-en-chile.html The president of Chile…announced an investment of more than 250 million dollars by the Chinese group Tingaran, specialized in lithium, that will create hundreds of jobs…the group is engaged in the research and development, production and sales of lithium-ion battery cells applied to power systems of electric vehicles, including electric mining trucks, and other equipment. According to Boric, the most important thing is that ‘we are not going to limit ourselves only to extraction but we are going to create value chains and also transfer knowledge because one of the commitments that the company has made is to generate exchange programs so that Chilean professionals can travel to China and also train in the development of this industry. So we are going to be advancing the National Lithium Strategy with investments like these with which we are very happy.’

Notes:

[i] For more information on China’s advance in important mining spaces such as the lithium industry, see: Ryan C. Berg and T. Andrew Sady-Kennedy, “South America’s Lithium Triangle: Opportunities for the Biden Administration,” Center for Strategic and International Studies, 17 August 2021. https://www.csis.org/analysis/south-americas-lithium-triangle-opportunities-biden-administration

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Image: Chilean President Gabriel Boric has focused extensively on the country’s lithium reserves as a source of global influence and for Chile’s development.
Source : https ://www.flickr.com/photos/consejocultura/52377478252
Attribution: CC BY-NC-SA 2.0 DEED

Western Efforts To Isolate Russia and Iran Falter in Latin America

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Naval vessels of the Islamic Republic of Iran Navy.

Naval vessels of the Islamic Republic of Iran Navy.

“In recent days, Russian media in Spanish, such as Sputnik and Russia Today, highlighted the rejection of the various Latin American governments to the requests of…Berlin. ‘The arms race in Ukraine does not have the support of South America,’ the outlets declared.”

Latin American countries have often spoken in terms of “neutrality” as they have tried to remain “non-aligned” regarding the Russia-Ukraine war.[i] While some countries in the region have condemned Russia’s invasion, none has joined the Western-led sanctions campaign. Nor has any of the six Latin American countries with old Soviet weaponry stepped forward to donate it to Ukraine. Underscoring these trends is the first article from the Spanish-language outlet BBC Mundo, covering German Chancellor Olaf Scholz’s recent trip to Argentina, Brazil, and Chile. At each stop, Scholz implored his counterparts to consider donating their Soviet weapons systems to Ukraine.[ii] All three leaders firmly declined. For his part, Brazilian President Luiz Inácio ‘Lula’ da Silva even blamed both Russia and Ukraine for the current conflict. Colombian President Gustavo Petro said he would rather see Colombia’s equipment become “junk” than send it to Ukraine where it could prolong the war. Latin American countries have been similarly reluctant to turn away from Iran. According to the second accompanying article from Argentina’s leading daily newspaper, La Nación, two Iranian warships sanctioned by the United States recently docked in Rio de Janeiro. Taken together, these developments suggest neither Russia’s war in Ukraine nor Iran’s domestic crackdowns on protestors and its provision of kamikaze drones to Russia for use in Ukraine have managed to isolate these countries in Latin America.

Sources:

“Por qué los países latinoamericanos se han negado a enviar armas a Ucrania (Why Latin American countries have refused to send weapons to Ukraine),” BBC Mundo (the Spanish-language outlet of the popular British state-owned network), 3 February 2023. https://www.bbc.com/mundo/noticias-america-latina-64506590

During a meeting with German Chancellor Olaf Scholz, who is visiting several Latin American countries this week, Fernández clarified that Argentina “is not thinking of sending weapons” to the conflict zone. A few days earlier, his peers in Colombia, Mexico, and Brazil had made similar claims…In recent days, Russian media in Spanish such as Sputnik and Russia Today, highlighted the rejection of the various Latin American governments to the requests of Berlin.

“Brasil permite que dos buques de guerra iraníes atraquen en Río pese a las presiones de EE.UU (Brazil allows two Iranian warships to dock in Rio despite US pressure),” La Nación (Argentina’s leading daily newspaper), 28 February 2023. https://www.lanacion.com.ar/el-mundo/brasil-permite-que-dos-buques-de-guerra-iranies-atraquen-en-rio-pese-a-las-presiones-de-eeuu-nid28022023/

Once Lula’s trip [to the White House] ended, the docking of the ships was authorized. Vice Admiral Carlos Eduardo Horta Arentz, deputy chief of the Brazilian Navy General Staff, gave his approval for the ships to dock in Rio between February 26 and March 4, according to an announcement published on February 23…The Brazilian Navy authorizes a foreign ship to dock in Brazil, but only with prior authorization from the Ministry of Foreign Affairs, which takes into account the request of the embassy in question and the logistics…Diplomacy with Iran was one of the highlights of Lula’s attempts to bolster Brazil’s international position during his previous presidential terms. In 2010, he traveled to Tehran to meet then-President Mahmoud Ahmadinejad as he tried to broker a US-Iran nuclear deal.

Notes:

[i] For more background on Latin America’s response to Russia’s war in Ukraine, see: Ryan C. Berg et al., “A Hesitant Hemisphere: How Latin America Has Been Shaped by the War in Ukraine,” Center for Strategic and International Studies, 12 February 2023. https://www.csis.org/analysis/hesitant-hemisphere-how-latin-america-has-been-shaped-war-ukraine

[ii] For more information on the estimated six countries in the region that could donate Soviet-era weapons systems to Ukraine, see: Jeff Seldin, “U.S. Pushing Central, South American Countries to Give Ukraine Quick Military Boost,” Voice of America, 20 January 2023. https://www.voanews.com/a/us-pushing-central-south-american-countries-to-give-ukraine-quick-military-boost-/6927591.html

Image Information:

Image:  Naval vessels of the Islamic Republic of Iran Navy
Source:  https://commons.wikimedia.org/wiki/File:Ceremony_to_welcome_the_33rd_and_send-off_the_34th_naval_groups_of_the_Islamic_Republic_of_Iran_Navy_%2813%29.jpg 
Attribution: Wikimedia, CC-BY-4.0

Argentina Gets Closer to China-Led Economic and Multilateral Institutions

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Argentina and China sign agreements to construct critical infrastructure such as nuclear power plants.

Argentina and China sign agreements to construct critical infrastructure such as nuclear power plants.

“The ambassador in Beijing assured that they will help Argentina get closer to the objective of its ‘formal entry’ into the BRICS.”

The accompanying passages suggest that Argentina’s political leadership would like to move the country away from Western economic and multilateral institutions, which often demand strenuous and politically challenging macroeconomic reforms and structural adjustments.  Meanwhile, China has presented the most obvious alternative for Argentina given that the two countries have shared a robust economic relationship for many years.  The leading edge of that relationship was always development-oriented in nature.  Now, Argentina has displayed a willingness to embed itself in economic and multilateral institutions with a major Chinese presence.  Argentina will participate as a special guest at future BRICS Summit gatherings.  It will also apply to join the organization’s New Development Bank, according to Argentina’s left-leaning financial newspaper Ámbito Financiero.  The country has stated its desire to permanently join the BRICS grouping in the future, for which Beijing has expressed initial support.  Other events have also signaled a rapidly changing strategic environment in Argentina, such as the recent signing of the Memorandum of Understanding to join China’s Belt and Road Initiative, says leading Spanish-language wire service Agencia EFE.  Argentina’s successful application to the Asian Infrastructure Bank in March 2021; China’s financing of nuclear power plants in Argentina; and Argentina’s desire to purchase the JF-17 Chinese-built fighter jet are just a few other recent examples that show China’s burgeoninginfluence in the country. 

Sources:

“Argentina participará en la próxima cumbre del grupo de los BRICS (Argentina will participate in the next summit of the BRICS group),” Ámbito Financiero (Argentina’s left-leaning financial newspaper), 7 May 2022.   https://www.ambito.com/argentina/participara-la-proxima-cumbre-del-grupo-los-brics-n5434293

Xi Jinping’s invitation… is extremely important, especially because of Argentina’s interest in joining the forum that has brought together Brazil, Russia, India, China and South Africa… the ambassador in Beijing assured that they will help Argentina get closer to the objective of its ‘formal entry’ into the BRICS.

Source:  “Argentina formaliza la adhesión a la iniciativa china de las nuevas rutas de la seda (Argentina formalizes adherence to the Chinese Belt and Road Intiative),” Agencia EFE (the leading Spanish-language wire service), 11 May 2022.   https://www.infobae.com/america/mexico/2022/05/11/como-el-cartel-de-sinaloa-y-el-cjng-han-innovado-la-produccion-de-cocaina-en-colombia/ 

Argentina formalized… the Memorandum of Understanding that it signed with China in February, which seals the adhesion of the South American country to the Belt and Road Initiative…. The document foresees cooperation projects in connectivity infrastructure, such as routes, railways, bridges, civil aviation, ports, energy and telecommunications…. The agreement will have a term of three years and will be automatically renewed for equal periods of three years, unless one of the parties gives notice that it terminates it at least three months in advance.

Image Information:

Image caption:  Argentina and China sign agreements to construct critical infrastructure such as nuclear power plants.
Source:  https://commons.wikimedia.org/wiki/File:Argentina_y_China_firman_contratos_para_construcci%C3%B3n_de_cuarta_y_quinta_central_nuclear_01.jpg
Attribution:  CC BY-SA 2.0