China Cools On Investing In Argentina

[Pensador]

With some of the posts relating to this I thought this might be interesting.

Hmmm China on US - Argentina relations

Xiang also highlighted the “potential political risk” of investing in a country that remained mired in a war of words with the United States about how to restructure its foreign debt. “We are worried about dealing with countries that have clear tensions with the United States,” he added.

http://www.emergingmarkets.org/Article/3440711/China-cools-on-Argentina-amid-growth-slowdown-and-US.html

 

[ghost]

Maybe Xtina will buy the next trains from Iran?

 

[Crema Americana]

More than tensions with the United States, they may be worried about Argentina paying its debts.

 

[sesamosinsal]

More than tensions with the United States, they may be worried about Argentina paying its debts.

1) Your wording is off. The GOA has been more than willing to pay its debts. Both Néstor Kirchner's government and Cristina Fernández's government have always shown willingness to meet the country's debt obligations. China, if anything, should be worried if Argentina will be allowed to pay its debts.

2) I'd honestly have to research the conditions of China's programs here. However, I am quite informed on the deals it has made with Ecuador. I can't imagine they're all that different with Argentina.

César Augusto Sosa, editor de economía en el diario El Comercio, explica que esa norma ha impedido que los convenios firmados con China se hayan transparentado ante la opinión pública. “No se sabe qué mismo está comprometido con China”, señala. Lo único que se conoce por los datos de Petroecuador es que el 80% del petróleo ecuatoriano se vende a China de forma directa gracias a los contratos de venta anticipada de crudo que se han firmado con ese país desde 2009. El petróleo ha sido la única garantía que ha exigido China para prestar dinero a Ecuador y el Gobierno ecuatoriano ha podido financiar sus megaobras sin demasiadas restricciones. Además el golpe de efecto es grande porque el presidente Rafael Correa ha podido mantener su discurso en contra de los califica como “heraldos del neoliberalismo” (Banco Mundial, FMI). “Ha resultado bastante cómodo para el Gobierno porque consigue el dinero de forma rápida y no rinde cuentas a nadie”, opina Sosa.

El negocio para China, por otro lado, ha sido redondo. No solo se ha asegurado el suministro de petróleo sino que también ha conseguido que Ecuador contrate a empresas chinas, proveedores chinos y mano de obra china como se ha visto en los proyectos hidroeléctricos Toachi-Pilatón y Coca Codo Sinclair. Paulina Garzón habla de esta forma de operar conocida como la estrategia de hierro. “China a través de sus préstamos consigue petróleo barato, cero riesgo en los préstamos, altos intereses, retornos rápidos, contratos para las empresas estatales y adicionalmente exporta mano de obra que sobra en China, pero que lamentablemente no es escasa en América Latina", dice la experta en inversiones chinas.

http://economia.elpa...571_064840.html

 

[garryl]

With some of the posts relating to this I thought this might be interesting.

Hmmm China on US - Argentina relations

Xiang also highlighted the “potential political risk” of investing in a country that remained mired in a war of words with the United States about how to restructure its foreign debt. “We are worried about dealing with countries that have clear tensions with the United States,” he added.

http://www.emergingm...own-and-US.html

shouda have thought of this earlier, not that hard to see. A fly on a bold head, everyone can see it.

 

[dennisr]

China's Trains stuck in limbo:FUBAR
http://www.lapoliticaonline.com/nota/88039-echegaray-frena-el-primer-cargamento-de-rieles-chinos-y-enfurece-a-kicillof/