The government of Argentina and China are expected to announce later today that they have signed an unprecedented $10Billion trade and investment agreement further linking the unlikely amigos together. The President of Argentina, Cristina Fernández is in China to ink the deal whereby China is providing the credit for the purchase of Chinese goods and in turn China will continue to buy soya oil and other natural resources from Argentina. Last year the country’s had a trade agreement with a total value of $4Billion, with Argentina running a trade deficit with China.
Recently China has entered into various trade agreements and strengthened its ties to Latin American countries. China appears willing to provide affordable financing to these countries especially if they are rich in natural resources, which China is not. China is the largest buyer of soya oil and Argentina the largest exporter.